Global Graphics News

Cambridge (UK), 9 April 2020: Global Graphics PLC (Euronext: GLOG) announces that due to the ongoing COVID-19 situation it has postponed its Annual General Meeting that was scheduled for 30 April 2020.  The revised date will be announced at a later date.

About Global Graphics 

Through its operating subsidiaries, Global Graphics PLC (Euronext Brussels: GLOG) is a leading developer of platforms for digital inkjet printing and type design and development. Customers for digital inkjet technology include press manufacturers such as HP, Canon, Durst, Roland, Hymmen and Mark Andy.  Those for font design include numerous international brands, from manufacturers such as Mercedes Benz and Siemens, to digital media and epublishing companies.  Global Graphics PLC is headquartered in Cambridge UK.  Its subsidiary companies are printing software developers Global Graphics Software; the type foundry, URW Type Foundry, and the industrial printhead driver solutions specialists, Meteor Inkjet; and the pre-press software specialists Xitron.

Contacts

Jill Taylor
Corporate Communications Director
Tel: +44 (0)1223 926489
Email: jill.taylor@globalgraphics.com

Graeme Huttley
Chief Financial Officer
Tel: +44 (0)1223 926472
Email: graeme.huttley@globalgraphics.com

Cambridge (UK), 11 March 2020 (08.00 CET): Global Graphics PLC (Euronext: GLOG) announces that it has published its annual report and financial statements for the financial year ended 31 December 2019.

The full document is available to download from the investors section of the Company’s web site at:  http://www.globalgraphics.com/investors/financial-reports

Should you wish to receive printed copies please send an e-mail to investor-relations@globalgraphics.com or make your request in writing, for the attention of the Company’s Chief Financial Officer, to 2030 Cambourne Business Park, Cambourne, Cambridge, CB23 6DW, UK.

Mike Rottenborn, Global Graphics CEO comments, “As forecast, profitability was lower in 2019 due to investment in additional personnel and new product development.  Revenue declined more than expected, primarily due to a slowdown in ceramic tiles and industrial printing that adversely affected our Printhead Solutions sales.  For 2020, we look for continued growth in our Software segment fuelled by tighter integration between Global Graphics Software and Meteor Inkjet, as well as the late-2019 acquisition of Xitron, our largest reseller partner.  We have started to see some recovery in industrial printing for 2020, although it is too early to estimate the impact of the coronavirus outbreak on this segment and the overall business.”

Financial highlights

For the year ending 31 December
In thousands of euros	2019	2018	Change
Revenue	22,508	23,922	(1,414)
Operating profit	983	2,808	(1,825)
Profit before tax	721	2,873	(2,152)
Tax expense	(269)	(504)	235
Profit for the year attributable to equity holders	452	2,369	(1,917)
EBITDA	4,377	5,720	(1,343)
Adjusted operating profit	2,666	4,759	(2,093)
Adjusted net profit	1,819	3,981	(2,162)
Basic earnings per share	0.04	0.20	(0.16)
Adjusted earnings per share	0.16	0.34	(0.18)
Available cash	4,995	5,650	(655)

The consolidated pre-tax result was a profit of €0.72 million compared with a profit of €2.87 million in 2018.  The reduction in profitability of €2.15 million is due to:

• a decrease in revenue of €1.41 million;
• a decrease in cost of sales of €0.69 million;
• a decrease in other income of €0.02 million;
• an increase in selling, general and administrative expenses of €0.77 million;
• an increase in research and development expenses of €0.29 million;
• an increase in other operating expenses of €0.02 million;
• an increase in net finance expenses of €0.15 million; and
• an increase in foreign exchange losses of €0.18 million.

Revenue for the Software segment totalled €11.61 million for the year (2018: €9.98 million).  The segment benefited from non-recurring revenue of €0.32 million from a new customer and a contract amendment with an existing customer that resulted in €2.00 million of revenue being recognised, which is also not expected to be recurring.  Additionally, €0.71 million associated with the acquisition of Xitron, LLC from 1 November 2019 contributed to the segment’s revenue.

Revenue for the Printhead Solutions segment was €6.87 million for the year (2018: €9.20 million).  Revenue from existing customers was lower by €2.97 million and was offset by revenue from new customers of €0.64 million.  The top three customers in the segment accounted for €2.66 million of the decline in existing customers, of which €0.68 million was non-recurring in 2018.  Two of these customers are in China and one is in the United States.

Revenue for the Fonts segment was €4.03 million for the year (2018: €4.75 million).  Included in the year was €0.78 million of non-recurring licence revenue (2018: €1.58 million).

Gross profit for the period has improved to 81.0% of revenue (2018: 79.3%), primarily due to the higher proportion of software revenue which generates a higher profit margin.

Included in selling, general and administrative expenses is amortisation of €1.23 million (2018: €1.16 million) related to intangible assets recognised as a result of acquisitions and €0.15 million (2018: €0.31 million) related to share-based payment expenses.

Included in research and development expenses is the capitalisation and amortisation of internally generated intangible assets.  During the period there was a net expense of €0.13 million (2018: €0.36 million) related to these assets.  The net expense was comprised of €1.44 million (2018: €1.41 million) in amortisation charge offset by €1.31 million (2018: €1.05 million) in capitalisation of development expenses.

The exchange rate losses are primarily due to the revaluation of currency balances held at the balance sheet date and the change in exchange rates during the year.

The Group presents EBITDA (earnings before interest, tax, depreciation and amortisation) and adjusted profit when reporting its financial results to provide investors with an additional tool to evaluate the Group’s results in a manner that focuses on what the Group believes to be its underlying business operations.  The Group’s management believes that the inclusion of adjusted financial results provides consistency and comparability with past reports.

Additional commentary and analysis of the Group’s consolidated results for the year ending 31 December 2019 can be found in the annual report and financial statements.

Annual General Meeting

The Company expects to hold its annual general meeting on Thursday 30 April 2020.  The official notice of the meeting will be issued in accordance with applicable legal and regulatory requirements closer to the time.

About Global Graphics

Through its operating subsidiaries, Global Graphics PLC (Euronext Brussels: GLOG) is a leading developer of platforms for digital inkjet printing and type design and development. Customers for digital inkjet technology include press manufacturers such as HP, Canon, Durst, Roland, Hymmen and Mark Andy.  Those for font design include numerous international brands, from manufacturers such as Mercedes Benz and Siemens, to digital media and epublishing companies.  Global Graphics PLC is headquartered in Cambridge UK.  Its subsidiary companies are printing software developers Global Graphics Software; the type foundry, URW Type Foundry, and the industrial printhead driver solutions specialists, Meteor Inkjet; and the pre-press software specialists Xitron.

Contacts

Jill Taylor
Corporate Communications Director
Tel: +44 (0)1223 926489
Email: jill.taylor@globalgraphics.com

Graeme Huttley
Chief Financial Officer
Tel: +44 (0)1223 926472
Email: graeme.huttley@globalgraphics.com

Cambridge (UK), 12 November 2019 (18:00 CET): Global Graphics PLC (Euronext: GLOG) has appointed Mike Rottenborn as its new CEO following Gary Fry’s decision to step down from the post at the end of the year to pursue other avenues in the printing and publishing software industry. Mr Rottenborn is currently the president and CEO of HYBRID Software Inc. and will take up his new position from 1st January 2020.

Gary Fry has served as chief executive officer since 2008 and has steered the Company through a significant growth period during which several strategic acquisitions have been concluded including Meteor Inkjet, the industrial printhead driver solutions specialists, and, Xitron LLC, a leading developer of prepress solutions.  He has been the driving force behind the Company’s success in providing software solutions for inkjet printing, a rapidly expanding technology which is used to produce labels and packaging, ceramics, interior décor, and textiles.

Mr Rottenborn (52) founded HYBRID Software in 2007 to provide a software solution that bridges the gap between e-commerce portals, prepress workflows, and MIS/ERP systems.  He has spent 30 years working in the graphic arts industry and began his career as an electrical engineer with DuPont Printing & Publishing. After DuPont, Mr Rottenborn joined PCC Artwork Systems to focus on prepress workflow software for packaging and commercial printing customers.

Guido Van der Schueren, chairman of Global Graphics comments, “Gary Fry has been instrumental in shaping Global Graphics into the organisation it is today with a very clear strategic focus on digital and inkjet printing and the board is grateful for the energy and dynamism he has brought to the role.  In Mike Rottenborn the Company has the ideal candidate to succeed Gary due to his impeccable technical credentials combined with extensive commercial experience.   He also has the analytical, leadership, and organizational skills that are required to guide the business forward.  With decades of industry experience to bring to bear he is a well-known and respected figure and the board is delighted to welcome him as part of the Global Graphics team.”

Mr Rottenborn received his Bachelor of Science degree in Electrical Engineering from Virginia Tech and his Master of Science degree in Computer Science from Villanova University.

About Global Graphics 

Through its operating subsidiaries, Global Graphics PLC (Euronext Brussels: GLOG) is a leading developer of platforms for digital inkjet printing and type design and development. Customers for digital inkjet technology include press manufacturers such as HP, Canon, Durst, Roland, Hymmen and Mark Andy.  Those for font design include numerous international brands, from manufacturers such as Mercedes Benz and Siemens, to digital media and epublishing companies.  Global Graphics PLC is headquartered in Cambridge UK.  Its subsidiary companies are printing software developers Global Graphics Software; the type foundry, URW Type Foundry, and the industrial printhead driver solutions specialists, Meteor Inkjet.

Contacts

Jill Taylor, Corporate Communications Director
Tel: +44 (0)1223 926489 | Email: jill.taylor@globalgraphics.com

Graeme Huttley, Chief Financial Officer
Tel: +44 (0)1223 926472 | Email: graeme.huttley@globalgraphics.com

Cambridge (UK), 8 November 2019 (08:00 CET): Global Graphics PLC (Euronext: GLOG) announces today that on Thursday 7 November 2019 it acquired Xitron, LLC (“Xitron”), a prepress solutions company headquartered in Ann Arbor, Michigan, USA. 

Xitron develops workflow systems and interfaces to drive the prepress industry’s most popular output devices.  One of Global Graphics Software’s longest standing partners, it has been building solutions around the Harlequin RIP® since 1991 to drive hundreds of different models of imagesetters, proofers, platesetters, inkjet printers, and digital presses.  

With customers around the world, including North and South America, China and Japan, the Harlequin-based Xitron Navigator RIP enjoys an international reputation. In recent years Xitron has been steadily increasing its footprint in production inkjet with its Navigator driven digital front end (DFE) which supports drive electronics from Meteor Inkjet and Global Inkjet Systems and drive all Memjet and Canon Finetech heads directly. 

Gary Fry, CEO of Global Graphics says “Xitron is the lead player in pre-press RIPs with some 35,000 Harlequin RIP–based installations around the world and an impressive network of dealers and distributors. This acquisition allows us to further develop our digital print strategy with a more complete offering for industrial inkjet, such as textiles and décor, and with a broader range of pre-press components for digital applications.” 

Karen Crews, president of Xitron, comments, ““Having developed prepress software solutions around the Harlequin RIP® for nearly 30 years, Xitron is looking forward to the collaboration and growth opportunities associated with this change. As we continue to expand beyond our well-established presence in offset, flexography, screen printing, and high-speed inkjet, we’re excited to be a key part of Global Graphics’ strategic initiatives.” 

Consideration for the acquisition is $4.5 million in cash, paid in full on closing. 

For the year ended 31 December 2018 Xitron recorded revenue of $4.77 million and EBITDA of $0.47 million and for the six months to 30 June 2019 revenue of $2.43 million and EBITDA of $0.32 million. 

About Global Graphics 

Through its operating subsidiaries, Global Graphics PLC (Euronext Brussels: GLOG) is a leading developer of platforms for digital inkjet printing and type design and development. Customers for digital inkjet technology include press manufacturers such as HP, Canon, Durst, Roland, Hymmen and Mark Andy.  Those for font design include numerous international brands, from manufacturers such as Mercedes Benz and Siemens, to digital media and epublishing companies.  Global Graphics PLC is headquartered in Cambridge UK.  Its subsidiary companies are printing software developers Global Graphics Software; the type foundry, URW Type Foundry, and the industrial printhead driver solutions specialists, Meteor Inkjet. 

Contacts 

Jill Taylor, Corporate Communications Director 

Tel: +44 (0)1223 926489 | Email: jill.taylor@globalgraphics.com

Graeme Huttley, Chief Financial Officer 

Tel: +44 (0)1223 926472 | Email: graeme.huttley@globalgraphics.com