Global Graphics PLC: Trading update for the quarter and nine months ended 30 September 2017
11 Octobre 2017 - 6:00PM
PRESS RELEASE - REGULATED INFORMATION
GLOBAL GRAPHICS
PLC: TRADING UPDATE FOR THE QUARTER AND NINE MONTHS ENDED 30
SEPTEMBER 2017
Cambridge (UK)
Wednesday 11 October 2017 (18.00 CEST) - GLOBAL GRAPHICS PLC
(Euronext: GLOG) provides a trading update for the third quarter
and first nine months of the financial year ending 31 December
2017.
Gary Fry, Global Graphics CEO
comments, "This quarter saw us take part in Labelexpo, the major
international label exhibition. This sector is full of
optimism and continues to show healthy growth. Currently, only a
small percentage of label and packaging printing is produced
digitally, giving huge potential to Global Graphics with our broad
range of digital solutions.
"We were delighted to announce two
significant new customers showing digital solutions at the
exhibition, namely HP Indigo with their HP Production Pro Digital
Front End for labels and packaging, and Durst with their Symphony
workflow driving a new high-speed label printer. Three other
undisclosed customers are now shipping products that include Global
Graphics software technology. Meteor Inkjet also had two customers
showing strong propositions on the show floor in Dantex and Mark
Andy.
"Although the third quarter of any
year is typically lighter on revenue, we have signed some
significant accounts which we expect to be revenue enhancing in the
coming months. It was also a particularly strong quarter for our
font foundry URW++ whose underlying business is on a positive
trend, reflecting the investments we have made.
"During the quarter we made a
small strategic technology acquisition of Cambridge Grey Bit
Limited, a research and development company specializing in
advanced software for industrial inkjet printing. This
acquisition broadens our technology portfolio in a strategically
important area for the Company. It complements the advances we have
already made in industrial inkjet with our ScreenPro screening
engine and the acquisition of Meteor Inkjet. Of its two
employees one has now joined the Global Graphics Software
development team."
Financial
highlights for the quarter and nine months ended 30 September
2017
The following information is
unaudited.
For the quarter ended 30 September 2017
-
Revenue for the quarter was €4.50 million (2016:
€4.09 million)
-
Gross profit for the quarter was €3.38 million,
or 75% of sales (2016: €3.72 million, 91% of sales)
-
EBITDA for the quarter was €0.61 million (2016:
€1.47 million)
-
Cash at 30 September 2017 was valued at €4.00
million (30 September 2016: €3.05 million)
For the nine months ended 30 September 2017
-
Revenue for the period was €14.67 million (2016:
€12.57 million)
-
Gross profit for the period was €11.19 million,
or 76% of sales (2016: €11.53 million, 92% of sales)
-
EBITDA for the period was €2.36 million (2016:
€4.77 million)
Segment sales analysis
The following table provides information about revenue for the
Group's operating segments for the quarter and nine months ended 30
September 2017 and 2016.
|
Quarter ended
30 September |
|
Nine months
ended 30 September |
€ 000s |
2017 |
2016 |
2017 |
2016 |
Print |
3,557 |
2,460 |
11,342 |
9,208 |
eDoc |
128 |
1,075 |
1,261 |
1,521 |
Fonts |
819 |
554 |
2,068 |
1,842 |
Total revenue |
4,504 |
4,089 |
14,671 |
12,571 |
During the nine months ended 30
September 2016, a customer in the Print segment exercised a
multi-year option in their contract which resulted in the
recognition of revenue totalling €2.87 million during that
period. There was no such item in the nine months ended 30
September 2017.
Gross profit
Following the acquisition of Meteor in December 2016, the Group's
sales are now comprised of software and a significant proportion of
hardware. The hardware revenue attracts a higher cost of
sale, resulting in lower gross margins, so gross profit margins
will be influenced by the mix of product that is sold during the
period.
EBITDA
EBITDA is calculated by adding back interest, tax, depreciation and
amortisation to net profit.
Cash
The Group continues to be free of any interest bearing debt,
therefore, has no interest payments or capital repayments to
make.
The terms of the acquisition of
Meteor necessitates a deferred consideration payment, payable in
cash, which is contingent on revenue. Two payments were made
during the nine months ended 30 September 2017.
Acquisition of
Cambridge Grey Bit Limited
On 27 September 2017, the Group acquired the entire issued share
capital of Cambridge Grey Bit Limited ("CGB").
CGB is a research and development
company specializing in advanced software for industrial inkjet
printing and is based near Cambridge, UK. With this
acquisition, CGB's expertise in screening and cross web calibration
for single pass and scanning inkjet heads will be integrated into
Global Graphics Software's technology offering.
Consideration for the acquisition
was £75,000 in cash followed by deferred consideration contingent
on revenue during the five year period from 27 September 2017 until
27 September 2022.
To date, CGB's revenue is not
material in relation to the Group's revenue and is not expected to
be material to the Group's Q4 or full year 2017 results.
About Global Graphics
Global Graphics PLC (Euronext:
GLOG) http://www.globalgraphics.com is a leading
developer of platforms for digital printing, including the
Harlequin RIP®. Customers include HP, Canon, Delphax, Roland,
Kodak and Agfa. The roots of the company go back to
1986 and to the iconic university town of Cambridge, and,
today the majority of the R&D team is still based near here.
The font foundry, URW++ Design and Development GmbH, and the
industrial printhead driver solutions specialists, Meteor Inkjet,
are subsidiary companies of Global Graphics PLC. Global
Graphics has offices in: Boston, US; Tokyo, Japan; and Hamburg,
Germany.
Contacts
Graeme Huttley |
Jill Taylor |
Chief Financial Officer |
Corporate Communications Director |
Tel: +44 (0)1223 926472 |
Tel: +44 (0)1223 926489 |
Email: graeme.huttley@globalgraphics.com |
Email: jill.taylor@globalgraphics.com |
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Global Graphics PLC via Globenewswire
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