11th Jun 2018 10:24
LONDON (Alliance News) - Grafenia PLC said Monday its annual loss widened despite a 40% increase in revenue.
For the year to March 31, the graphics arts software developer posted a pretax loss of GBP1.2 million compared with a pretax loss of GBP987,000 million in the year ago period. Revenue increased to GBP14.6 million from GBP10.4 million in the same comparative period a year ago.
The company said that Litho print revenue has been declining due to decreasing prices across the marketplace.
"Given that a significant part of our production cost is fixed, any decrease in print revenues immediately causes our contribution margin to decline," the company said.
Chairman Jan-Hendrick Mohr said the company's stores have been improving in the last year "but are still not where we would like them to be".
"Some stores are losing money, partly due to the terms of leases signed many years back. I strongly believe that improving own studio performance is the proverbial lowest hanging fruit," he added.
Mohr said that current trading for the year is "mixed" as print revenue continues to be under pressure.
Shares were trading down 5.1% at 14.00 pence.
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