leadf
logo-loader
viewGrafenia Plc

Grafenia still facing headwinds and red ink in printing

Volumes and margins in trade business were below budget in December and January and fell away sharply last month

Web page
Grafenia is regrouping around web design

Grafenia Plc (LON:GRA) has seen mixed trading recently with revenues lower than expected and unrelenting pressure on print prices.

The print shop, supplies and website designer said revenues for 2017/18 will be just under £15mln, 40% higher than the previous year but still below management forecasts.

READ: Mixed trading but Grafenia on track to hit revised expectations

Volumes and margins in trade business were below budget in December and January and fell away sharply last month.

As a result, losses for the year to March will be around £2.85mln, or similar to 2016/17.

Grafenia’s strategy has to be to shift away from the intensely competitive print shop business and regroup around Nettl, its web design operation, with add-on acquisitions such as signage to widen its offering.

Spending on the re-positioning may hit earning further in the short-term, Grafenia added, but is necessary for its long-term transformation.

Cash generation is healthy said Grafenia, a trend it expects to continue.

Shares eased 3% to 12p.

 

Quick facts: Grafenia Plc

Price: 6.5 GBX

AIM:GRA
Market: AIM
Market Cap: £7.44 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Sirius Real Estate: Building a solid foundation block by block

Proactive Analyst Ed Stacey presents his research into Sirius Real Estate. Stacey talks through the investment case, which he believes has great returns and solid foundations. He says Sirius Real Estate has been a stand-out performer within the UK listed commercial real estate sector over the...

10 minutes ago

2 min read