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Grafenia slips into red and axes dividend amid currency woe

Grafenia posted annual pre-tax losses of £260,000, versus a profit of £530,000 the year before

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Grafenia has decided to pursue potential acquisitions

Printing and graphics group Grafenia Plc (LON:GRA) fell into the red and axed its final dividend after the stronger pound made exports to the continent less competitive.

Grafenia posted a pre-tax loss in the year to March 31 of £260,000, versus a profit of £530,000 the year before, on a 2.3% fall in turnover to £10.8mln.

The Manchester-based group makes printed marketing, stationery and display graphics, shipping more than 12,000 individual orders a month.

It said the strengthening of sterling against the euro during the financial year made the ongoing supply of print to the euro-zone less rewarding.

Grafenia, which sold its Dutch business last October to focus on its UK and Ireland operations, said it had reviewed its remaining activities and decided to pursue potential acquisitions.

It has also decided to license its intellectual property, systems and brands to help partners expand their businesses.

The group said its decision to hit the acquisition trail meant it had decided against issuing a final dividend, unlike last year when it paid a penny per share.

The total dividend for the year therefore comprises the interim dividend of 0.25p, versus 1.5p last time.

But chairman Les Wheatley added: “However, the directors will continue to assess market conditions and may opportunistically purchase company shares when the gap between price and value is deemed large enough.”

Shares in the company dropped 0.5p, or 3%, to 16p in mid-morning London trading.

Quick facts: Grafenia Plc

Price: 4.5 GBX

AIM:GRA
Market: AIM
Market Cap: £5.11 m
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