27th Nov 2019 11:37
(Alliance News) - Printer and signage maker Grafenia PLC on Wednesday reported a narrowed annual loss as it aims to break-even in the second half.
For the six months to September, Grafenia's pretax loss was GBP1.2 million, from GBP1.4 million a year before, as revenue rose 1.2% to GBP8.4 million.
"Print margins continue to erode, as input costs have risen and trade prices pursue their race to the bottom. However, services, subscription and licence income has increased, which masks a greater fall in other parts of the business," said Manchester-based Grafenia.
The company continues to look for acquisitions, it said. In the signage sector it wants larger businesses it can covert into regional hubs, though it is also "talking to" smaller businesses with the aim of rolling them into an existing store or converting them into a Nettl Business superstore.
Since the first half, trading has been "mostly" positive, Grafenia said, with some parts of the business setting sales records but other legacy areas performing more slowly year-on-year.
"Given the political and economic situation, we still remain cautious on quantifying the outlook. But our goal for the second half is earnings before interest, tax, depreciaton, and amortisation breakeven on a monthly run-rate basis and our mid-term goal remains to reach an Ebitda margin of 10% to 15%," it said.
Shares were untraded in London on Wednesday morning, last quoted at 9.50 pence each.
By George Collard; [email protected]
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