GLOBAL GRAPHICS SE (Euronext: GLOG), a developer of software platforms for digital printing, digital document and PDF applications, provides a trading update for the first quarter of the financial year ending 31 December 2015. Financial highlights for the quarter ended 31 March 2015
The following information is unaudited.
Operational highlights for the quarter ended 31 March 2015
- Revenue for the quarter was €5.19 million (2014: €2.21 million), an increase of 134.6% over the same quarter in 2014.
- The Company's measure of adjusted operating profit was a profit of €2.62 million (2014: €0.12 million) for the quarter.
- Cash at 31 March 2015 was €3.51 million (2014: €0.85 million). The Group continues to be debt free, therefore, has no interest payments or capital repayments to make.
On 30 March 2015 the Company announced that it had acquired the trade and assets of RTI Global, Inc. and RIPMall Technologies, Inc. (together "RTI"), both located in Sarasota, Florida, USA.
RTI provides and supports custom-branded versions of the Harlequin RIP direct to print service providers and printing equipment manufacturers, mostly in the North American market, and is a long-standing customer of the Group. RTI has grown a successful on-line sales operation over the past 20 years, selling the RTI Harlequin RIP for use with a wide variety of printing equipment and workflows.
Total consideration is estimated to be $0.27 million, which will be settled in cash, from existing shares and the forgiveness of debt.
For the year ended 31 December 2014, the unaudited accounts of RTI showed revenue of $0.93 million and a profit before tax of $0.11 million.
The acquisition is expected to be earnings enhancing in the current financial year. Segment and revenue analysis
Following a strategic review of the business and trends in the markets that the Group operates in, management will, in addition to the existing operating segments of Print and eDoc, report revenue under four additional market headings. These four strategic markets, which encompass both the Print and eDoc software technologies are:
- High-speed: for the increasing trend in the industry to move to high-speed inkjet printing, where the Group already provides its software technology to some of the market leaders;
- In-house: for the emerging trend of in-house production printing devices that allow staff to print low volume jobs on varying media in-house rather than sending out to a print service provider;
- Office: where existing office printer manufacturers are looking to reduce the costs of their hardware devices while at the same time creating new digital document software applications to build new revenue streams and differentiate their solutions from their competitors; and
- Traditional: for the Group's traditional graphics art printing business.
The following table shows the revenue attributable to each of the four markets for the quarter ended 31 March 2015 and 31 March 2014.
|€ 000s || |
|High-speed || |
|In-house || |
|Office || |
|Traditional || |
|Total revenue || |
Ffor the quarter, the Print operating segment revenue was €4.96 million (2014: €2.02 million) and the eDoc operating segment revenue was €0.23 million (2014: €0.19 million).
On 4 March 2014, the Company announced that it had signed a contract to license its Harlequin technology to a global manufacturer of office printing devices to drive their single function, multi-function and production printers. The contract has been included in the Print operating segment and is now included under the aforementioned Office market heading. During the quarter €3.42 million (2014: €0.82 million) was recognised as revenue from this contract, bringing the total recognised to date under this contract to €6.14 million. Excluding the revenue from this contract, the Group's revenue for the quarter was 27.2% higher than the revenue in the comparative period in 2014. Annual General Meeting
As announced on 25 March 2015, the Company's Annual General Meeting will be held at the offices of Andlinger & Co, Avenue Louise 326, 1050 Brussels, Belgium on Tuesday 28 April 2015 at 10:00 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/annual-shareholders-meeting/
. Results for the six months ending 30 June 2015
The Company expects to publish its condensed consolidated financial statements for the six months ending 30 June 2015 after market close on Monday 27 July 2015.
Graeme Huttley, Chief Financial Officer
Tel: +44 (0)1223 926472
Jill Taylor, Corporate Communications Director
Tel: +44 (0)1223 926489