leadf
logo-loader
viewGrafenia Plc

Grafenia warns on profits as competition intensifies

Aggressive pricing is coming from new European entrants and domestic commercial printers diversifying.

PrinterInks.jpg
Digital textiles are expected to become an increasingly important part of the product range

Print software and supplies group Grafenia (LON:GRA) warned trading has not picked up and results this year will be well below market forecasts.

Markets have never been more competitive, it said, with aggressive pricing from new European entrants and domestic commercial printers diversifying into the trade print sector.

Downward price pressure has intensified and in response Grafenia has increased its promotional activity, incentives and selective discounting. 

Cost savings measures have included renegotiating supplier contracts, underperforming store closures and job cuts. but these will not show through fully until the first half of the next financial year.

A new subscription model has been introduced for printing.com franchisees, whereby they licence its web-to-print software w3p in return for exclusivity for the printing.com brand in their local territory.  

Online trade arm Marqetspace is still attracting orders and new clients, it added, with the annualised monthly run rate expected to hit £3m by the year end.

Digital textiles are expected to become an increasingly important part of the product range.

Peter Gunning has now been appointed as chief executive on a permanent basis. 

Quick facts: Grafenia Plc

Price: 4.5 GBX

AIM:GRA
Market: AIM
Market Cap: £5.11 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

Ascendant Resources drill program continues looking to expand south zone at...

Ascendant Resources (TSE: AND) President and CEO Chris Buncic joined Steve Darling from Proactive with news the company's drill program continues as the look at the South Zone of the Lagoa Salgada Project in Portugal. Buncic telling Proactive they are expecting to have results from this...

5 hours, 58 minutes ago

2 min read