British software provider Global Graphics has reported an increase in sales and profits for the first six months of the financial year.
It is seeing signs of recovery in China to offset the pressures elsewhere. As the company has customers across the world, united by the need to drive inkjet print technology, Global Graphics is not as badly affected as some.
The company swiftly adopted work from home measures, using an existing infrastructure to communicate around the world. “This has served us well during the onset of the global pandemic,” says CEO Michael Rottenborn. “By the time the software sales at Global Graphics Software and Xitron started to fall, we were already seeing a strong recovery by Meteor Inkjet in China’s industrial applications, offsetting the drop that occurred in this segment last year.”
The company put in place other cost saving measures including salary cuts across the board. The figures have gained from the sale of the URW type deign business to Monotype. This has brought in €7.5 million, €5.0 million of which has been banked and the remainder due on two payments over the next two years. In addition, a single customer for the group’s software arm extended an existing contract, leading to a €2.30 million gain.
Overall, Global Graphics has reported a revenue from continuing operations of €11.8 million (€9.59 in 2019) and a petal profit amounting to €1.91 million (€0.48 million). Revenue from software accounted for 53% of this; engineering and design services maintenance and support increased a little to be worth 8.4%; hardware and consumables 2.2%; engineering and product design services accounted for 1.2%, while consultancy and others achieved 0.4% of the total.
Its printhead solutions arm saw a dramatic increase in demand with two customers accounting for a 75% growth compared to 2019.
Global Graphics is clearly benefitting from the trend towards inkjet pricing where the software provider is developing a comprehensive suite of electronics and software to enable a printer business to bring to market changes in technology faster than might otherwise be the case.
This provides an underlying confidence, says Rottenborn. He explains: “It is important to note that despite the signs of recovery, there is still a great deal of uncertainty around Covid-19 and its impact on our business.
“Although cost controls remain in place throughout most of Global Graphics, our commitment to innovation is as strong as ever, with new product development continuing as planned. But there’s no doubt that the remainder of 2020 will be a challenging environment for Global Graphics and for our OEM customers.”
Global Graphics had scarcely considered the impact of the pandemic when publishing its annual report in March. Since then there have been huge changes as the Global Graphics Software time pictured above in Cranbourne are now all working from home.