Cambridge (UK), 19 March 2025 (19:00 CET): Hybrid Software Group PLC (Euronext: HYSG) announces that it has published its annual report and financial statements for the financial year ended 31 December 2024.
The full document is available to download from the financial reports section of the Company’s web site at: https://www.hybridsoftware.group/investors/financial-reports.
CEO Mike Rottenborn comments, “2024 was a successful year for Hybrid Software Group, with healthy growth in all business units despite difficult market conditions. We expect similar conditions in 2025, yet we are still very positive about the outlook for Hybrid Software and our customers.
“Synergies in the business plan aren’t always realised in the market, so it’s very encouraging to see the tandem growth in both our OEM and end-user businesses, with an overall revenue growth of 7% over the previous year. In last year’s letter, I promised to focus on improving the profitability of Hybrid Software, so it’s gratifying to report that we delivered a 286% improvement in our adjusted operating result over 2023, as well as a 64% increase in our EBITDA, despite heavy marketing spending on the Drupa trade fair. We expect to deliver further improvements in the coming year.
“2024 also saw the launch of a new business unit, Hybrid Software BrandZ, to serve brands and manufacturers of consumer packaged goods with software solutions for artwork management which facilitate downstream print production, opening a market that is potentially much larger than the print providers themselves.”
Executive Chairman Guido Van der Schueren adds, “We enter 2025 in similar business conditions to 2024 but as a much stronger company, with revenue growth across all our business segments and an even more significant improvement in profitability. We achieved this through careful cost management while continuing to fully fund our engineering teams and software development programs.
“In late 2024 we instituted a share buyback program, committing €1 million to buy back and cancel shares as a sort of tax-free dividend to all shareholders. There are strict limits to the number of shares we can buy and the price we can pay for shares, but the impact on our share price has been significant already and we plan to continue this initiative throughout 2025.”
Financial highlights
| For the year ended 31 December | ||
| In thousands of euros | 2024 | 2023 |
| Continuing operations | ||
| Revenue | 51,501 | 48,043 |
| Operating loss | (3,090) | (1,161) |
| Loss before tax | (3,361) | (1,667) |
| Tax credit | 653 | 2,986 |
| (Loss)/Profit from continuing operations | (2,708) | 1,319 |
| Loss on sale of discontinued operation, net of tax | (120) | – |
| (Loss)/Profit for the period | (2,828) | 1,319 |
| EBITDA – continuing operations | 11,989 | 7,306 |
| Adjusted operating profit – continuing operations | 7,204 | 2,517 |
| Adjusted net profit – continuing operations | 6,952 | 1,676 |
| Basic earnings per share (euro) – continuing operations | (0.09) | 0.04 |
| Adjusted net basic earnings per share (euro) – continuing operations | 0.21 | 0.05 |
| Cash and cash equivalents | 9,513 | 7,079 |
| Loans & borrowings | (6,500) | (7,800) |
| Net cash/(debt) | 3,013 | (721) |
The consolidated pre-tax result for continuing operations was a loss of €3.36 million compared with a loss of €1.67 million in 2023. The increase in the loss of €1.69 million is due to:
- an increase in revenue of €3.46 million;
- a decrease in cost of sales of €0.59 million;
- a decrease in selling, general and administrative expenses of €0.58 million
- an increase of €6.28 million impairment charge on goodwill;
- an increase in research and development expenses of €0.17 million;
- an increase in other operating expenses of €0.06 million;
- a decrease in other income of €0.05 million;
- an increase in net finance expenses of €0.02 million; and
- a decrease in foreign exchange losses of €0.26 million.
Revenue for the Printing Software Segment was €16.67 million for the year (2023: €14.94 million). During 2024 new contracts were agreed with two existing customers which resulted in €4.3 million of revenue being recognised. In 2023 a new contract was agreed with an existing customer which resulted in €2.6 million of revenue being recognised in that year.
Revenue for the Printhead Solutions segment was €11.59 million for the year (2023: €11.30 million). In 2022 revenue in this segment had been severely impacted by the shortage of its most commonly used chip. In 2023 it recovered significantly throughout the year which continued into 2024 although at a slower pace.
Revenue for the Enterprise Software segment was €23.24 million for the year (2023: €21.81 million). In 2023 the segment experienced unfavourable business conditions in its two most important markets, the United States and Germany, which improved in 2024. For the segment year-over-year license royalty income increased by €0.8 million, maintenance and after-sale support services income €0.4 million and services income by €0.2 million.
Gross profit for the period decreased to 84% of revenue (2023: 82%), primarily due to the lower mix of printing electronics related sales during the year, which have a lower level of gross margin than software because of their manufacturing costs.
Included in selling, general and administrative expenses is amortisation of €0.90 million (2023: €0.97 million) related to intangible assets recognised as a result of acquisitions.
In 2024 the Group recorded a goodwill impairment charge of €6.28 million (2023: €nil) in aggregate.
Research and development expenses includes the capitalisation and amortisation of internally generated intangible assets and the amortisation of certain intangible assets recognised as a result of acquisitions. During the period there was a net capitalisation of development expenditure of €0.53 million (2023: €1.39 million) and amortisation of acquired intangible assets of €4.57 million (2023: €4.76 million).
The net capitalisation of development expenditure was comprised of €3.45 million (2023: €3.82 million) of capitalised expenditure less €2.92 million (2023: €2.43 million) of amortisation.
Total operating expenses increased by €5.93 million, or 14.56% compared to the same period in the prior year. Making abstraction of the goodwill impairment of €6.28 million, total operating expenses decreased by €0.35 million, or 0.86% compared to the same period in the prior year.
Foreign exchange gains and 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 Company 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 Company’s consolidated results for the year ending 31 December 2024 can be found in the annual report and financial statements.
Should you wish to receive a printed copy of the annual report, please send an e-mail to investor-relations@hybridsoftware.group 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.
Annual General Meeting
The Company will hold its annual general meeting on Thursday 15 May 2025. The official notice of the meeting will be available on the Company’s website at: https://www.hybridsoftware.group/investors/shareholders-annual-general-meeting.
About Hybrid Software Group
Through its operating subsidiaries. Hybrid Software Group PLC (Euronext: HYSG) is a leading developer of enterprise software for industrial print manufacturing. Customers include press manufacturers such as HP, Canon, Durst, Roland, Hymmen, and hundreds of packaging printers, trade shops, and converters worldwide.
Hybrid Software Group PLC is headquartered in Cambridge UK. Its subsidiary companies are colour technology experts ColorLogic, printing software developers Global Graphics Software, enterprise software developer HYBRID Software, 3D design and modelling software developers iC3D, the industrial printhead driver solutions specialists Meteor Inkjet, and pre-press workflow developer Xitron.
Contacts
Floris De Ruyck
Legal Counsel & Investor Relations Officer
Tel: +32 (0) 9 329 57 53
Email: florisdr@hybridsoftware.group
Joachim Van Hemelen
Chief Financial Officer
Tel: +32 (0) 9 329 57 53
Email: joachimvh@hybridsoftware.group