Grafenia Share Discussion Threads

[dangersimpson2] 07/10/2015 21:54

I think it's simply cost saving. Taking 200k out of the cost base makes a big difference when the operating profit will be 'materially less' than 450k.

[topvest] 07/10/2015 21:16

That's an interesting point on the CEO. I'm confused by him going. He was the driving force. He was Printing.com wasn't he? Maybe he does want to buy the business back and run as a small private company. Who knows. Doesn't look to me like their new retail format is working.

[dd776] 07/10/2015 16:53

Think he will still be after the divi. Time for him to enjoy his winter sports.

[tiswas] 07/10/2015 15:41

Anyone think Tony has left so he can buy the company from outside?

Just a thought.

[tyranosaurus] 07/10/2015 08:35

I`ve had these since around 2000 and I`m surprised by this.
Dividend is based on profits, which are going to be modest for first half.
I expect a reduced or cancelled first half dividend.
Sale proceeds retained for business, so not going to be any special dividend then.
No share buybacks as in closed period.

Timing stinks.

[topvest] 07/10/2015 08:03

There will also be an impact on the hub if it isn't doing any of the European throughput. I've taken off my watch list now. This is going to have to restructure significantly and downsize.

[dangersimpson2] 07/10/2015 00:10

So they lose 6m Rev and 0.4 op profit.

If trading was flat on last year this would leave 11m Rev and 0.45m net profit.

But we know that trading will be materially below...say 0.3m max net profit at a guess.

On the plus side assuming no cash burn they will have 3m cash after the sale proceeds.

Apply say 7x multiple to profit (technically needs a sustainable business to apply a multiple but 7x would discount a flat/declining business somewhat) and we get a fair value of c5m or c10p share.

Could be a buy if it falls much below sub-10p or maybe a buy higher if you are confident that they can return to higher profitability or have a long term sustainable business that will grow. Neither of which I would be very confident of.

Either way I would be surprised if it isn't one of the biggest fallers tomorrow.

Also in a close period so management can't support the price with purchases even if they still believe in the future business.

[topvest] 06/10/2015 21:04

Yes, wow. Think this is dire. If Tony Rafferty has quit, that's not a good sign. Good sale of the overseas business, all things considered. Is the UK business viable now though? I'm not sure. I've been waiting to see whether this turned. Don't think it will. You can't fight technological obsolescence and a business in terminal decline.

[purplerain2] 06/10/2015 20:21

Why Tony Rafferty leave, ran out.

[hydrus] 06/10/2015 18:05

Oh dear - odd time to release what seems to be a profit warning, in with some other key news.

[purplerain2] 18/9/2015 09:35

Pro print aus todayWhirlwind for W3PAndrew Cester, CEO of Whirlwind Print, a major trade printer located at Knoxfield in Melbourne, is a print ecommerce visionary. He sees flexibility and speed as the keys to the future of commercial printing nd predicts that MIS, equipped with cloud capability and web-to-print, will become the preferred model, as print buyers will be able to complete the majority of a design brief from their tablets, from where it can be fed into a remotely located art department, prepress and onto the presses.These days, MIS is a concept that reaches far beyond simple order taking, even if that has long ago migrated online. The power of the web carries far more potential for print transactions than that.Nineteen-year-old Whirlwind Print began as a graphic design agency and its heart has always been in this phase of the printing process, reflects Cester. So it was only natural that it would one day invest itself fully in design-rich web-to-print, a concept that is ingeniously being marketed as W3P, to differentiate it from W2P, which omitted design templates from the web equation.Whirlwind's W3P offerings, through exclusive Australian rights to UK design company Grafenia, were announced by Whirlwind to industry acclaim last year. There is w3client, which enables print buyers and ad agencies to create customer-specific, editable templates from Adobe InDesign in as little as ten minutes, and have them ready as orders, complete with print-ready PDFs. And there is w3shop, aimed at SMEs and micro-businesses, which can order online using a library of over 80,000 design templates and 25 million photos from Grafenia's Fotolia image collection.Cester tells ProPrint that since Whirlwind launched its W3P services, more than 100 Australian PSOs have signed up and he forecasts further rapid growth. Some printers have signed up for the w3client MIS alone, which enables integration with various financial software, such as Xero, and can generate invoicing, or be interfaced with internal financial systems.However, most of Whirlwind's printer clients have chosen the full online print management solution, including in their package w3shop, which can be transparently integrated as a tab in their websites. For example, Design To Print Solutions in Somerville on Victoria's Mornington Peninsula, a Whirlwind client, has transformed its website from a relatively static repository of basic company information into a dynamic, content-rich ecommerce platform."The printers taking w3shop are either developing specialist niches in terms of their products and services, or else they want to become the most successful printer in their locality," says Cester. "Right now, less than 30 per cent of printers in Australia have a true transactional website but we believe that will change quickly."Ecommerce relationships with w3client and w3shop users around Australia – integrated into Whirlwind's production hub – have started to pay dividends for Whirlwind, bringing significant amounts of work to its Knoxfield site, keeping things busy on its Komori Lithrones, and increasingly also on its Xerox iGen and HP Indigo. Cester reflects: "We're adding value to the design, print and procurement process and that's the way of the future."

[wskill] 04/8/2015 18:40

A vote of confidence then from SDV they must have better access to the company than us PIs.

[topvest] 17/7/2015 21:25

Broadly in line means slightly below. Two new formats are starting to progress. As per Stockopedia comment though it's not clear how profitable these are. I would like to invest in this, but resisting the temptation until there are signs that revenue has flatlined.

[tyranosaurus] 13/7/2015 13:38

Price now sinking again.
Part due to ex div but this looks destined to trade in the range of 14p to 24p for the forseeable future.
Mine have been tucked away since the initial flotation and I have recovered more than the cost in dividends.
Will continue to hold as long as they can afford a decent dividend.

[topvest] 08/6/2015 20:57

The increase was at the interim stage.

[topvest] 08/6/2015 09:06

Agreed, but outlook is still very tough. Still watching but too early to jump in. They are running uphill. Management are excellent, but technological obsolescence is a tough battle to fight.

[wskill] 08/6/2015 07:45

Well done to management an excellent result and the 1.5p dividend who could ask for more.

[purplerain2] 03/6/2015 09:52

W3P now in 12 countries.UK, Ireland, France, Netherlands, Belgium, Spain, Germany, Poland, Croatia, U.S., Australia, New Zealand,Looking forward to Monday.

[dd776] 21/5/2015 07:08

the story of the company

hxxp://www.printweek.com/print-week/interview/1151458/-my-aim-is-always-to-find-the-next-scalable-business

[topvest] 08/4/2015 20:44

Yes, an interesting article. Grafenia are still on my watch list.

I want better evidence of revenue growth before I re-enter here.

Technological obsolescence in a business can be devastating so not convinced the new format can overcome the death of print.

The business cards price down in the FT article is truly scary.

Management here are fantastic. Trouble is they are running flat out to stand still, at best!

[dd776] 08/4/2015 16:39

No more downgrades me thinks. 27 store,s on the horizon.

hxxp://www.nettl.com/uk/find-a-studio/

[dd776] 01/4/2015 08:40

With over 15 years development under it's belt, w3p is already in use at over 1000 sites around the world. It is the leading design-2-print solution in the global market. See for yourself at PrintEx, through live on stand demonstrations.

hxxp://www.printex.net.au/en/Exhibitors/494810/Whirlwind-Print/Products/765245/w3p-Design-to-Print