The software behind perfect printed and digital communication
Perfect printed and digital communication

News Release

Cambridge, UK  04/11/2017

Trading update for the quarter ended 31 March 2017

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Cambridge (UK) Tuesday 11 April 2017 (18.00 CEST) - GLOBAL GRAPHICS SE (Euronext: GLOG) provides a trading update for the first quarter of the financial year ending 31 December 2017.

Gary Fry, CEO reports “we have had an extremely strong quarter bearing in mind that there was no exceptional item as there was this time last year. A considerable amount of growth has been due to the acquisition of Meteor Inkjet Limited (“Meteor”).  We are extremely pleased with how the integration of Meteor has progressed and with their excellent team. We are also very pleased with the joint opportunities that have already emerged and with the extra value we have been able to generate for our existing joint customers. The inkjet sector is extremely vibrant and represents a strong opportunity for Global Graphics due to our ability to add significant value for manufacturers in terms of software, fonts and drive electronics, individually or as a complete solution.”

Financial highlights for the quarter ended 31 March 2017

The following information is unaudited.

·        Revenue for the quarter was €4.70 million (2016: €5.25 million)

·        Gross profit for the quarter was €3.61 million, or 77% of sales (2016: €4.94 million, 94% of sales)

·        EBITDA for the quarter was €0.73 million (2016: €2.34 million)

·        Cash at 31 March 2017 was valued at €4.30 million (2016: €3.41 million)

Segment sales analysis

The following table provides information about revenue for the Group's operating segments for the quarter ended 31 March 2017.
Quarter ended 31 March
€ millions
2017
2016
Print
3.88
4.50
eDoc
0.11
0.17
Fonts
0.71
0.58
Total revenue
4.70
5.25

During the quarter ended 31 March 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 quarter.  There was no such item in the quarter ended 31 March 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
Historically, the Group has reported its own measure of adjusted operating profit in addition to the IFRS reported profit, however, to be consistent with general practice and to use a more familiar measure, it will report EBITDA as an alternative measure of profit.

EBITDA is calculated by adding back interest, tax, depreciation and amortisation to net profit.

For reference, EBITDA for the preceding three financial years was:
Year ended 31 December
€ millions
2016
2015
2014
EBITDA
4.29
5.00
3.72



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.  The first payment was made during the quarter ended 31 March 2017.

Annual General Meeting

As announced earlier today, the Company's Annual General Meeting will be held at the offices of Andlinger & Co, Avenue Louise 326, 1050 Brussels, Belgium on Monday 8 May 2017 at 14:00 hrs (CEST).

A copy of the complete notice and other supporting information, including explanatory notes, requirements for proof of ownership of shares and the proxy form, is available for download from the investors section of the Company’s web site at: http://www.globalgraphics.com/investors/shareholders-shareholders-annual-general-meeting.

Results for the six months ending 30 June 2017

The Company expects to publish its condensed consolidated financial statements for the six months ending 30 June 2017 after market close on Wednesday 26 July 2017.

Editors notes

About Global Graphics
Global Graphics SE (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 SE.  Global Graphics has offices in: Boston, US; Tokyo, Japan; and Hamburg, Germany.

Contact

Graeme Huttley Chief Financial Officer Tel: +44 (0)1223 926472 Email: graeme.huttley@globalgraphics.com Jill Taylor Corporate Communications Director Tel: +44 (0)1223 926489 Email: jill.taylor@globalgraphics.com