Grafenia Says Annual Loss To Be Unchanged Changed Despite Revenue Jump

23rd Mar 2018 14:26

LONDON (Alliance News) - UK printing company Grafenia PLC on Friday said it expects to report a loss in financial 2018 similar to what it posted the year before, despite revenue improving by 40%.

Grafenia said revenue is expected to be just below GBP15 million in the year ending March 31, around 40% higher than last year. However, this is slightly behind management expectations, and it also suffered weaker print margins.

As a result, Grafenia said it expects its loss before interest, taxes, depreciation and amortization and its pretax loss to be around a similar level to the year before, when the company reported a pretax loss of GBP987,000.

Grafenia said cash generated through operations remains at healthy levels, and this is anticipated to continue. Net debt is expected to be about GBP2.9 million a year-end.

The company said it continues to reduce its reliance on print volumnes, with a great proportion of revenue now coming from licence fees, signage and website sales.

"Our Nettl company studios have performed better than last year. We've invested in training and development to drive performance. Overall, studios have improved both top-line revenue and margin," the company said. "Our strategy is to sell SMEs a full suite of print, promo, exhibition products and web design services. "Today there are over 180 Nettl locations in multiple countries. We want to scale further," the company added.

Shares in Grafenia were up 1.2% at 12.50 pence on Friday afternoon.

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