Global Graphics publishes 2017 annual report and financial statements
Cambridge (UK), 28 February 2018 (18.00 CET): Global Graphics PLC (Euronext: GLOG) announces that it has published its annual report and financial statements for the financial year ended 31 December 2017.
The full document is available for download from the investors section of the Company’s web site at: http://www.globalgraphics.com/investors/financial-reports
Should you wish to receive printed copies please send an e-mail to email@example.com or make your request in writing, for the attention of the Company’s Chief Financial Officer, to 2030 Cambourne Business Park, Cambourne, Cambridge, CB23 6DW, UK.
Gary Fry, Global Graphics CEO comments, “I am very pleased with our top line growth and especially that we have attained another milestone in 2017, that of exceeding revenue of €20 million. Our acquisitions strategy and our focus on new product development have strengthened our position in the fast-growing high-speed digital inkjet market. We expect continued growth in 2018 with even stronger synergies between the operating companies.”
|In thousands of euros||2017||2016||Change|
|(Loss)/profit before tax||(163)||130||(293)|
|(Loss)/profit for the year attributable to equity holders||(266)||596||(862)|
|Adjusted operating profit||2,140||3,013||(873)|
|Adjusted net profit||1,773||3,670||(1,897)|
|Basic (loss)/earnings per share||(0.02)||0.05||(0.07)|
|Adjusted earnings per share||0.15||0.33||(0.18)|
The consolidated pre-tax result was a loss of €0.16 million in 2017 compared with a pre-tax profit of €0.13 million in 2016. The reduction in profitability of €0.29 million is due to:
- an increase in revenue of €4.51 million;
- an increase in cost of sales of €3.51 million
- an increase in selling, general and administrative expenses of €1.02 million;
- a decrease in research and development expenses of €0.95 million;
- an increase in other operating expenses of €0.54 million; and
- a decrease in foreign exchange gains of €0.67 million.
Included in selling, general and administrative expenses is amortisation of €1.52 million (2016: €1.07 million) related to intangible assets recognised as a result of acquisitions and €0.06 million (2016: €0.95 million) related to share-based payment expenses.
Included in research and development expenses is the capitalisation and amortisation of internally generated intangible assets. During the period there was a net expense of €0.18 million (2016: €1.52 million) related to these assets.
Redundancy costs of €0.28 million are included in other operating expenses. This expense relates to a minor reorganisation in Global Graphics Software, which is expected to result in annualised cost savings of approximately €0.90 million, taking effect from 1 January 2018.
Also included in other operating expenses is a charge of €0.23 million for a fair value adjustment to contingent consideration payable for the acquisition of Meteor Inkjet Limited (“Meteor”). The growth in revenue seen during 2017 in Meteor surpassed expectations used when modelling the acquisition date fair value of contingent consideration. The model was subsequently revised for current forecasts and expectations, which concluded that it is expected that the contingent consideration payments will be made earlier, thereby increasing the present value of those payments.
The exchange rate gains are primarily due to the revaluation of currency balances held at the balance sheet date and the change in exchange rates during the year.
The Group presents EBITDA (earnings before interest, tax, depreciation and amortisation) and adjusted profit when reporting its financial results to provide investors with an additional tool to evaluate the Group’s results in a manner that focuses on what the Group believes to be its underlying business operations. The Group’s management believes that the inclusion of adjusted financial results provides consistency and comparability with past reports.
Additional commentary and analysis of the Group’s consolidated results for the year ending 31 December 2017 can be found in the aforementioned annual report and financial statements.
Annual General Meeting
The Company expects to hold its annual general meeting on Tuesday 24 April 2018 in Brussels. The official notice of the meeting will be issued in accordance with applicable legal and regulatory requirements closer to the time.
About Global Graphics
Corporate Communications Director
Tel: +44 (0)1223 926489
Chief Financial Officer
Tel: +44 (0)1223 926472