Cambridge (UK), 27 March 2019 (18.00 CET): Global Graphics PLC (Euronext: GLOG) announces that it has published its annual report and financial statements for the financial year ended 31 December 2018.
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.
Gary Fry, Global Graphics CEO comments, “We have put in a solid performance in 2018 although it should be noted that there was a significant amount of non-recurring revenue that we do not expect to be repeated. This leads us to expect that revenue for the 2019 financial year will be broadly in line with 2018. However, due to investing in additional staff during 2018 and 2019, we expect comparable profitability will be reduced.”
Financial highlights
| In thousands of euros |
2018
|
2017
|
Change
|
|
|
| ||
| Revenue |
23,922
|
20,536
|
3,386
|
| Operating profit/(loss) |
2,808
|
(288)
|
3,096
|
| Profit/(loss) before tax |
2,873
|
(163)
|
3,036
|
| Tax expense |
(504)
|
(103)
|
(401)
|
| Profit/(loss) for the year attributable to equity holders |
2,369
|
(266)
|
2,635
|
|
|
| ||
| EBITDA |
5,720
|
3,095
|
2,625
|
|
|
| ||
| Adjusted operating profit |
4,759
|
2,140
|
2,619
|
| Adjusted net profit |
3,981
|
1,773
|
2,208
|
|
|
| ||
| Basic earnings/(loss) per share |
0.20
|
(0.02)
|
0.22
|
| Adjusted earnings per share |
0.34
|
0.15
|
0.19
|
|
|
| ||
| Net cash |
5,650
|
5,076
|
574
|
The consolidated pre-tax result was a profit of €2.87 million in 2018 compared with a pre-tax loss of €0.16 million in 2017. The increase in profitability of €3.03 million is due to:
- an increase in revenue of €3.38 million (€3.73 million of 2018 revenue is expected to be non-recurring, see below for more information);
- a decrease in cost of sales of €0.13 million;
- an increase in other income of €0.02 million;
- an increase in selling, general and administrative expenses of €0.59 million;
- an increase in research and development expenses of €0.36 million;
- a decrease in other operating expenses of €0.51 million;
- an increase in finance income of €0.02 million; and
- a decrease in foreign exchange gains of €0.08 million
Revenue for the Software segment totalled €9.98 million for the year (2017: €9.08 million). Revenue from existing customers declined by €0.93 million year on year, offset by revenue from new customers and licensing deals of €1.83 million, of which €1.48 million is expected to be non-recurring.
Revenue for the Printhead Solutions segment was €9.20 million for the year (2017: €7.68 million). The number of customers for which revenue was recognised during the year increased by 24.5% over the previous year. Sales in Europe remained flat, but there was 64.3% (€0.70 million) growth in North America and 13.7% (€0.72 million) growth in Asia. The growth in Asia included €0.67 million which is expected to be non-recurring.
Revenue for the Fonts segment was €4.75 million for the year (2017: €3.78 million). During the year a new contract was signed in the Fonts segment which generated €1.58 million in revenue. The revenue from that contract is non-recurring and is not expected to be repeated.
Gross profit for the period has improved to 79.3% of revenue (2017: 75.2%). Margins were improved across all segments of the Group.
Included in selling, general and administrative expenses is amortisation of €1.16 million (2017: €1.52 million) related to intangible assets recognised as a result of acquisitions and €0.31 million (2017: €0.06 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 €0.36 million (2017: €0.18 million) related to these assets. The net expense was comprised of €1.41 million (2017: €1.46 million) in amortisation charge offset by €1.05 million (2017: €1.28 million) in capitalisation of development expenses.
The exchange rate gains 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 2018 can be found in the annual report and financial statements.
Annual General Meeting
The Company expects to hold its annual general meeting on Wednesday 15 May 2019 in Brussels. The official notice of the meeting will be issued in accordance with applicable legal and regulatory requirements closer to the time.
Editors notes
About Global Graphics
Contact
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