Grafenia narrows losses despite tough times for clients

Grafenia reported turnover of £8.41m in its first half results on Wednesday, rising from £8.31m year-on-year, as it swung to EBITDA of £0.02m, from a loss of £0.44m a year earlier.

The AIM-traded printing company said its operating los for the six months ended 30 September was £1.01m, narrowing from £1.36m, while its loss before tax shrank to £1.2m from £1.44m.

It reported a total comprehensive loss for the period of £1.08m, compared to £1.26m 12 months prior, while its losses per share were 1.17p, from 1.75p.

Grafenia’s capital expenditure totalled £0.65m in the first half, rising from £0.22m, and at period end it had cash in the bank of £2.54m, up from £1.62m.

Its net debt on 30 September was £0.25m, compared to £1.06m in the first half of last year.

On the operational front, Grafenia noted that its Nettl network reached 235 locations globally during the half-year, as Nettl company store revenue grew by 20%.

It reported that it had successfully consolidated two of its factories into one, and had launched a new printing press, which it said generated decent operational savings.

The company completed a placing of £4.01m as well, to support its sign roll-up strategy.

“We're rolling-up sign businesses and building performance in our company-owned Nettl stores,” explained chief executive officer Peter Gunning.

“We're launching new services, developing new products and licencing our brands and systems to others.

“During the interim period, revenues have grown in all of those parts of our business and our confidence increases that we have the right strategy.”

Gunning said it was “far from an easy time” to be in business, adding that the company’s focus on business-to-business meant thar for its clients, the current political environment was “messing” with their day-to-day decision-making.

“Nevertheless, we've continued to invest in the future.

“During the first half we've completed significant heavy-lifting in our main production hub - that's an investment in future cost-savings and available capacity.

“Whilst it's had some positive impact in the first half, we expect to see the bulk of the benefit in the second half and in future years.”