Things are getting better for struggling web and print supplies group Grafenia (LON:GRA), but maybe not fast enough for it to meet full-year expectations.
The printing firm said depressed trading levels picked up in September, albeit not to budgeted levels.
The company, formerly known as Printing.com, has bitten the bullet and switched to an “everyday low prices” model rather than a “best of luck working out which of our special offers represents the best value” model, responding to fierce competition in the trade print sector.
In a trading statement released ahead of the release of its results for the six months to the end of September, Grafenia said the price cuts increased the volume of orders the group and its partners produced in the UK and Ireland by 14% year-on-year.
Grafenia said this demonstrated that, “equipped with a more competitively priced product range, our partners are winning more orders”. It remains to be seen whether the increase in orders will make up for the loss of margin.
Trading in October has started encouragingly, but the group remains cautious.
“Whilst trading immediately following the EU referendum was difficult, the improvement since the summer and the encouraging increase in the number of Nettl and printing.com Brand Partners, means that, provided trading continues to improve, market expectations remain achievable,” Grafenia said.
The shares opened 11.2% lower at 8.99p.