ANALYSIS OF THE COMPANY’S FINANCIAL PERFORMANCE
Quarter ended 30 June 2013
Comparisons for the quarter ended 30 June 2013 with the second quarter of the financial year ended 31 December 2012 include:
The Company’s consolidated results for the quarter ended 30 June 2013 were:
Six-month period ended 30 June 2013
Comparisons for the six-month period ended 30 June 2013 with the first six months of the financial year ended 31 December 2012 include:
Sales reported for the six-month period ended 30 June 2013 include the royalty revenue referred to under note 2b (iii) of the Board’s report on operations for the financial year ended 31 December 2012, which is included in the Company’s annual financial report for 2012.
The Company’s consolidated results for the six-month period ended 30 June 2013 were:
Cash position and cash flow analysis
The Company had no outstanding debt and a cash position of Euro 1.7 million as at 30 June 2013, compared with a net cash position of approximately Euro 2.3 million as at 31 December 2012, and of Euro 1.5 million as at 30 June 2012.
Cash flows provided by the Company’s operations amounted to Euro 0.4 million in the six-month period ended 30 June 2013 (compared with cash flows used in the amount of Euro 0.1 million in the same period of the financial year ended 31 December 2012), allowing the Company to finance its operating requirements and its capital expenditures during the first six months of the current financial year.
Detailed discussion of the Company’s financial performance
A detailed discussion of the Company’s financial performance during the quarter and the six-month period ended 30 June 2013, including a comparison with the previous financial year’s comparative periods, is set out in note 2 to the interim management report of the Company’s Board of Directors for the quarter and the six-month period ended 30 June 2013, which is attached to this press release, together with the condensed consolidated interim financial statements for those periods.
Gary Fry, Global Graphics’ Chief Executive Officer, stated: “Our first half performance was not in line with our expectations, notably in our Print segment, due to lower shipping volumes of certain of our digital press customers in comparison to the same period of 2012. Whilst it is beyond our direct control, we expect that this trend will not continue in the second half of 2013 and we anticipate stronger sales and a better operating performance during the remainder of 2013.
“During the second quarter of 2013 our Print development teams were busy readying technology launches for the second half of the year, including version 4.0 of our Harlequin Host Renderer which we announced in July. The Harlequin Host Renderer is used to build the digital front-ends that drive high-speed digital presses, and this release contained enhancements to color management and further increases in speed. It has been well received by our partners.
“This quarter, on the applications side of the Company’s business, the development focus has been on prototyping enhancements that can be added to our gDoc Platform by our OEM and system partners. We also prepared to launch our new gDoc Creator, a PDF creation product, that was announced in July, and which demonstrates to our partners the exceptional document conversion quality and speed that is possible when creating applications based on our platforms.”
UPDATE ON THE COMPANY’S LEGAL REORGANIZATION
On 7 June 2013, the Company’s shareholders rejected the proposed transfer of the Company’s share listing to NYSE Alternext Brussels, but unanimously approved the conversion of Global Graphics SA into a European Company (SE). Such conversion of the Company into a SE has been effective since 11 July 2013.
On 18 October 2013, the Company’s shareholders will be invited to vote on the proposed relocation of the Company’s registered office from France to the UK.
Additional information on the Company’s legal reorganization is available on a dedicated page of the Investor section of its website at: http://www.globalgraphics.com/investors/legal-reorganization.
INFORMATION ON THE COMPANY’S PERFORMANCE FOR THE QUARTER AND THE NINE-MONTH PERIOD ENDING 30 SEPTEMBER 2013
Global Graphics expects to provide information on its financial and operating performance for the quarter and the nine-month period ending 30 September 2013 on Friday 18 October 2013 before market opening.