Sales uptick for Manchester printing and software firm Grafenia

Losses have narrowed and revenues are beginning to pick up for Manchester printing and software company, Grafenia.

Turnover during the six-month period ending 30 September increased to £6.31m, from £5.25m in the prior year.

Gross profit improved to £3.44m, up from £2.96m. Gross profit as a percentage of sales was 54.5%, a reduction from last year’s 56.3%.

Last year, in the height of the first lockdown, product sales were hit hard.

Higher margin digital services and subscription fees were more resilient. This year, sales of displays, printing and signage have rebounded a little. That change in product mix explains the reduction in percentage margin.

During the period Grafenia, which operates two business units, Works Manchester and Nettl Systems, has also reduced overhead costs by upgrading equipment, deploying software and combining two factories into one.

This has seen modest improvements in gross profit which meant that EBITDA rose to £390,000 compared to last year’s loss of £130,000.

The group reported loss after tax of £630,000 which has narrowed from last year’s £1.17m for the same period.

The Listed firm said in a statement: “We’re currently in the second half of our financial year. Trading in October was ahead of last year and November should end better than last year.

“We’ve come out of the pandemic in better shape than we went into it. We’re focusing our attention on building more recurring revenue streams. That’s by a mix of buying software companies. And by building tools to licence to professionals in the graphic arts, print and sign sectors.

“And to give our Nettl stores and partners access to the best systems, to deliver a client experience that’s beyond what they’re used to.”