(Alliance News) - Grafenia PLC on Wednesday warned that near-term sales visibility has become "clouded" and said that it will take longer to reach its monthly breakeven goal by March 31 on earnings before interest, tax, depreciation and amortisation basis.
"We are taking all possible steps to control overheads during the crisis, but the trading environment is changing on a day by day basis and forecasting is challenging," the printing business said.
The company's trading in the second half of financial 2020 was mixed, with some months slightly ahead year-on-year and some months slightly behind.
Grafenia, however, said that closure of several clients due to UK government guidelines means sales visibility will be hard to predict.
"It is likely that the print sector will be impacted significantly by the current market conditions. Volumes have been falling, margins eroding and an oversupply have already created a tough trading environment. Coronavirus seems certain to remove capacity further," the company explained.
Peter Gunning, chief executive of Grafenia, said: "These are unprecedented times for our industry. We're asking business owners who previously might not have been considering a sale to get in touch. There's increased safety being part of a larger group. We have access to capital to execute our strategy. We can move quickly to help otherwise sustainable businesses who've been impacted by recent events. Any interested businesses should email letmein@grafenia.com to start the process."
Shares in Grafenia were up 20% at 4.50 pence each in London on Wednesday afternoon.
By Tapan Panchal; tapanpanchal@alliancenews.com
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