Global Graphics Plc: Publication Of 2019 Annual Report And Financial Statements

 
TIDMGLOG 
 
   PRESS RELEASE -- REGULATED INFORMATION 
 
   GLOBAL GRAPHICS PUBLISHES 2019 ANNUAL REPORT AND FINANCIAL STATEMENTS 
 
   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: 
https://www.globenewswire.com/Tracker?data=6n26LeLnPN89OzWTfoPXK4hKsN3Ig98a6eDchr9IskhVGS2ezBVfxZRg50kc8PQC-qeR7NiKGt11jNdPZ5k4F9RCGje2kV5gWwOyASeCxc50z2QjWxooCCDanQevjvq8uFOzU_ZjG_xkXtWF24yXA7Et4PKJq9Lj7tkSNJWgWyCRAfji7kuJ8cUFrUOGH9Wi 
http://www.globalgraphics.com/investors/financial-reports 
 
   Should you wish to receive printed copies please send an e-mail to 
https://www.globenewswire.com/Tracker?data=6FS0Wk1MmyT-qa-iW74RwCHcAMJWr-bpBfiLd3SDWEdfrl79urzluWOGvjAnaw0LI5OlF2feu0R4Nh-oburPbgskfwqwSNESSTWCviQNpKdR_Ly07L40zjnIgOnP8N1JseuSypADAyFRKjzw_YP5Ag== 
[e-mail] 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 EUR0.72 million compared 
with a profit of EUR2.87 million in 2018.  The reduction in 
profitability of EUR2.15 million is due to: 
 
 
   -- a decrease in revenue of EUR1.41 million; 
 
   -- a decrease in cost of sales of EUR0.69 million; 
 
   -- a decrease in other income of EUR0.02 million; 
 
   -- an increase in selling, general and administrative expenses of EUR0.77 
      million; 
 
   -- an increase in research and development expenses of EUR0.29 million; 
 
   -- an increase in other operating expenses of EUR0.02 million; 
 
   -- an increase in net finance expenses of EUR0.15 million; and 
 
   -- an increase in foreign exchange losses of EUR0.18 million. 
 
 
   Revenue for the Software segment totalled EUR11.61 million for the year 
(2018: EUR9.98 million).  The segment benefited from non-recurring 
revenue of EUR0.32 million from a new customer and a contract amendment 
with an existing customer that resulted in EUR2.00 million of revenue 
being recognised, which is also not expected to be recurring. 
Additionally, EUR0.71 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 EUR6.87 million for the 
year (2018: EUR9.20 million).  Revenue from existing customers was lower 
by EUR2.97 million and was offset by revenue from new customers of 
EUR0.64 million.  The top three customers in the segment accounted for 
EUR2.66 million of the decline in existing customers, of which EUR0.68 
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 EUR4.03 million for the year (2018: 
EUR4.75 million).  Included in the year was EUR0.78 million of 
non-recurring licence revenue (2018: EUR1.58 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 EUR1.23 million (2018: EUR1.16 million) related to intangible assets 
recognised as a result of acquisitions and EUR0.15 million (2018: 
EUR0.31 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 EUR0.13 million (2018: EUR0.36 
million) related to these assets.  The net expense was comprised of 
EUR1.44 million (2018: EUR1.41 million) in amortisation charge offset by 
EUR1.31 million (2018: EUR1.05 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 
https://www.globenewswire.com/Tracker?data=RMiazst35I5KfoM1tnqnWn3NNlpDsF1DQ8Zm_XEC3bpGJlhi2xuNME2W-FwhX1KtSqIl-GH41oUIpRp6UzEDS6BXlnU71u1uUOOf1oY0V2k= 
(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 
https://www.globenewswire.com/Tracker?data=RMiazst35I5KfoM1tnqnWtEc0kY-gw5p1vLhhSHXdLpYZALFL2uFy4DuKprh08b3Ith_IAAOmQsiyQFBZX5qDDeSXJ6SYoNtLXo3VPhb7TQ-dr6U-wrLBl6X0vTkzujhqe5oqyjlgOhoVGoFxTAOYA== 
; the type foundry, URW Type Foundry 
https://www.globenewswire.com/Tracker?data=avc9wLhjxJl8TfbuBVfJ-3Rm67q0cKlPUDZ3FvshRbe0BLEmRslJsFY97CqYslsMv8fefQAkzvylp5H_8ZzBhXCTonSZPYKMwup3Mlnh-8g= 
, and the industrial printhead driver solutions specialists, Meteor 
Inkjet 
https://www.globenewswire.com/Tracker?data=9f59o80DhSp6CVippqFvo9UgcCJZMJUq1fGhktIyYSn0-imobTCWoxbzyXFeamR00RU2WD0fgBtRUoICVq3lF1nR2zcX2E7-OFhZ-XTTQ-4= 
; and the pre-press software specialists 
https://www.globenewswire.com/Tracker?data=IY4cZxaAd24Dqe67XdTwFMiB1Pe6vXfdylZxC7tXIrHzlbjcmUFgAOjWoPyA-_cwjwGsL4SsiidEhZ9dQyWrmA== 
Xitron. 
 
   Contacts 
 
 
 
 
Jill Taylor                                                                     Graeme Huttley 
Corporate Communications Director                                               Chief Financial Officer 
Tel: [phone]                                                         Tel: [phone] 
Email: mailto:[e-mail]?subject=Press%20release%20enquiry  Email: mailto:[e-mail]?subject=Press%20release%20enquiry 
 [e-mail]                                                  [e-mail] 
------------------------------------------------------------------------------  --------------------------------------------------------------------------------- 
 
 
 
 
 
 

(END) Dow Jones Newswires

March 11, 2020 03:00 ET (07:00 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.