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Grafenia still facing headwinds and red ink in printing

Volumes and margins in trade business were below budget in December and January and fell away sharply last month

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Grafenia is regrouping around web design

Grafenia Plc (LON:GRA) has seen mixed trading recently with revenues lower than expected and unrelenting pressure on print prices.

The print shop, supplies and website designer said revenues for 2017/18 will be just under £15mln, 40% higher than the previous year but still below management forecasts.

READ: Mixed trading but Grafenia on track to hit revised expectations

Volumes and margins in trade business were below budget in December and January and fell away sharply last month.

As a result, losses for the year to March will be around £2.85mln, or similar to 2016/17.

Grafenia’s strategy has to be to shift away from the intensely competitive print shop business and regroup around Nettl, its web design operation, with add-on acquisitions such as signage to widen its offering.

Spending on the re-positioning may hit earning further in the short-term, Grafenia added, but is necessary for its long-term transformation.

Cash generation is healthy said Grafenia, a trend it expects to continue.

Shares eased 3% to 12p.

 

Quick facts: Grafenia Plc

Price: 4.5 GBX

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