Global Graphics has announced its financial results for the year ending 31 December 2018, which broadly show that the company is moving in the right direction.
Thus revenue was up €3.3 million to €23.92 million while operating profit was €2.8 million, up from the previous year’s loss of €288,000, and the profit before tax was €2.87 million, an improvement on the previous year’s loss of €163,000.
The software segment generated revenue of €9.98 million mostly in licensing, a slight improvement over the 2017 figure of €9.08 million, though this includes €1.48 million of non-recurring revenue.
Meanwhile the fonts business saw revenue of €4.75 million though this included €1.58 million from a new contract that is also non-recurring.
There was better news in the Printhead solutions business, with revenue of €9.20 million, up from the 2017 figure of €7.68 million. Global Graphics says that sales in Europe remained the same as the previous year, but there was 64.3 percent (€0.70 million) growth in North America and 13.7 percent (€0.72 million) growth in Asia.
Gary Fry, Global Graphics’ CEO comments, “We have put in a solid performance in 2018 although it should be noted that there was a significant amount of non-recurring revenue that we do not expect to be repeated. This leads us to expect that revenue for the 2019 financial year will be broadly in line with 2018. However, due to investing in additional staff during 2018 and 2019, we expect comparable profitability will be reduced.”
Graeme Huttley, Global graphics’ CFO tell me that this confidence in predicting next year’s performance despite the lack of non-recurring revenue is based on the expectation that some customers will start shipping their products this year, and the belief that new business will materialize, which is not unreasonable given that the company does have projects in the pipeline that it is working on.
Fry also makes it clear in the financial report that Global Graphics is now able to leverage hardware and software synergies across the group, which also includes Meteor Inkjet and the font developer URW.