viewGrafenia Plc

Mixed trading but Grafenia on track to hit revised expectations

Trading since it issued a profit warning in February has been up-and-down, but revenues, underyling earnings and net cash should all hit revised forecasts

Soft demand in January and February meant print volumes were materially lower than the same period last year

Grafenia Plc (LON:GRA) inched higher on Monday morning despite telling investors it had experienced more difficult trading conditions since it issued a profit warning back in February.

Shares were clobbered a little over six weeks ago when the web and print supplies group said full year earnings would be “significantly behind” market expectations due to soft demand at the start of the year.

READ: Grafenia warns on full-year profits as soft demand hits print volumes

Trading between then and now has been “mixed” the AIM-listed group said, with print revenues in February behind those generated last year before picking up again in March.

The net result is that Grafenia expects full year results to the end of March to be in line with revised expectations for revenue, underlying earnings and net cash, although earnings before interest and tax (EBIT) is likely to miss forecasts.

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Grafenia acquired its first signs business, ADD Signs, back in January and said today that the new acquisition is “progressing well” with revenues better than expected.

The company added that it will look to make more earnings enhancing acquisitions in the sign sector, as well as other areas.

Full-year results for the year to 31 March 2017 are due to be published on 7 June.

Board changes

Grafenia has finally appointed a permanent successor to Les Wheatley, who stepped down as chairman last summer.

Several interims have filled the gap left by Wheatley,  but Jan Mohr, who has been a non-executive director for just over a year, is the man stepping up to the position full-time.

Elsewhere, non-executive director Pavel Begun has announced he will retire from the board after the firm’s AGM in July.

Shares edged 0.5% higher to 6.53p on Monday morning.

Quick facts: Grafenia Plc

Price: 4.5 GBX

Market: AIM
Market Cap: £5.11 m

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