(Alliance News) - Grafenia PLC on Wednesday said revenue rose by 8.2% in its most recently ended financial year, but earnings were hurt by increased input costs and will show a loss at the Ebitda level.
The printing company said it expects revenue for the year to that ended in March to come in at GBP15.8 million, up from GBP14.6 million reported the year prior, with the increase partly due to a full 12 months of trading from Image Everything, acquired in July 2017.
Grafenia's Nettl partner network has grown to 228 locations during the year, it said, compared to 192 locations around the world last year, with the company now having 73 active Nettl partners in the UK and Ireland, 27 in Benelux, 13 in France, eight in the US, four in New Zealand and three in Australia.
Revenue in Nettl stores grew to GBP2.6 million during the year from GBP1.6 million a year earlier.
Grafenia also highlighted that it added 44 new printing.com partners and currently has 85 printing.com locations.
As a result, its subscription and licence fee income grew to GBP2.0 million from GBP1.8 million year-on-year.
Grafenia noted that, like many businesses and most in the print sector, it has faced rising input costs, particularly with paper, which hurt its margins. This will result in the company recording a loss at the earnings before interest, tax, depreciation and amortisation level, it said for the recent financial.
Grafenia said this does not reflect its cost-base moving forward as it has taken significant steps to reduce its overheads.
Looking ahead, the AIM-listed company said it expects to add more Nettl partners in its financial 2020.
Since the year-end, trading in the first quarter of the new financial year has been in line with the company's internal budgets, Grafenia said. Depending on due diligence and funding, it plans to continue its acquisition strategy.
Grafenia shares were trading flat on Wednesday in London at 11.00 pence each.