Cambridge, UK 13/04/2015
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
- 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
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
- 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;
- 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
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
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
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