Print and website firm set to repeat losses of nearly £1m

Grafenia store

Manchester-based print and website design firm Grafenia says it is set to repeat last year’s pre-tax losses of nearly £1m.

This is despite a projected near 40% increase in revenue to £15m for the year ending March 31, 2018.

The company said trading had been “mixed”, as it continues to experience “headwinds with transactional print”.
Its volume and margins in its trade divisions were below budget in December and January and are sharply down for February.

“While there is oversupply and discounting in the market it is difficult to see this trend changing,” a statement from the listed company said.

It went on to say the company was targeting a strategy to become less reliant on print volumes with a greater proportion of its revenues now come from licence fees, signage and website sales.

It said: “As a result of revenues being slightly behind management expectations and weaker print margins, we expect our EBITDA and pre-tax loss for the year ending March 312018 to be around a similar level to last year.

“We expect net debt to be circa £2.85m at the year end. We generate healthy levels of cash through our operations and we forecast that to continue.”

Click here to make your voice heard in our Manufacturing in the Midlands survey
Close