03:00 Mon 10 Apr 2017
Grafenia plc - Trading Update, board changes & notice of results
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
(THE 'COMPANY' OR THE 'GROUP')
PRE CLOSE TRADING UPDATE, BOARD CHANGES AND NOTICE OF RESULTS
Trading
The Board expects full year results to be in line with revised market expectations for revenue, EBITDA and net cash. This year the effect of revising the useful economic life of software & capitalised development from five to a more prudent three years is expected to increase amortization by
We are delighted to report that we have more than doubled the number of our Nettl studios to 108 in the period, which is more than expected. Nettl partners pay a monthly subscription of typically
Marqetspace.com, our online print channel for graphic professionals, has continued to grow and has transacted with over 2,800 clients to date. March set new records for total revenue, total gross margin, average client order value and spend, and the number of new clients placing their first order. Marqetspace remains our main source of new Nettl and
We manufacture and sell 'ink-on-fabric' exhibition displays and soft signage via Marqetspace and our
In January, we acquired ADD Signs, our first signs business. The integration is progressing well and the revenue generated has been ahead of forecast. We are targeting further value accretive acquisitions in this and other sectors, to both scale our Nettl network more quickly and grow value for our shareholders by acquiring complementary businesses.
Board Changes
The Board also announces that, following the resignation of the previous Chairman in
Share buybacks
Each year the Board seeks shareholder consent at the Company's AGM to make share buy-backs within certain parameters and intends to do so at the next AGM. Since 2008, the Company has, in aggregate, purchased 2.76m shares and presently holds 2.1m shares in
The Board has established an enhanced forecasting process that models different scenarios of cash generation. Based on this analysis, an internal valuation of the Group is derived. The Board will use this model on an ongoing basis to determine whether share buy-backs represent good value and are an appropriate allocation of capital at any point in time, subject always to complying with relevant rules and regulation. If the Board decides to utilise the shareholder authorities to carry out share buy backs, that intention will be announced to the market.
Notice of results
The Company expects to report its Preliminary Results for the year ended
For further information:
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07973 191 632 0161 848 5713 |
N+1 Singer (Nominated Adviser)
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0207 496 3000
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