GLOBAL GRAPHICS SE (Euronext: GLOG), a developer of software platforms for digital printing, digital document and PDF applications, provides a trading update for the third quarter and first nine months of the financial year ending 31 December 2015.

Operational highlights for the quarter ended 30 September 2015

·        Ricoh Europe have licensed the Group’s gDoc technology to enable Ricoh to develop digital document solutions that support flexible, mobile access to information.  During the quarter, Ricoh Europe launched Ricoh eBinder across the EMEA region via its 23 operating companies and their resellers. In addition to the standard Ricoh eBinder application, Ricoh will deliver customised versions to meet the requirements of large enterprises and selected vertical markets.

·        On 15 September 2015, the Company announced that it had acquired the entire issued share capital of URW++ Design & Development GmbH ("URW"), a font manufacturer located in Hamburg, Germany.  Part of the consideration was settled in cash and part was settled with Company shares.  A total of 925,926 new ordinary shares were created, increasing the number of issued shares from 10,289,781 to 11,215,707, resulting in a dilution of 8.26%.

·        The Group has been working with a number of inkjet press manufacturers that have been suffering with quality issues to develop entirely new half-tone screening technology for high-speed presses that can vary the amount of ink delivered in any one location on the media.  Significant improvements in output quality have already been achieved and further progress is expected over the coming months.  Martin Bailey, Global Graphics’ CTO, presented a session on this subject, titled "Colour management is not enough: achieving maximum inkjet quality with screening” at The Inkjet Conference on 7th October 2015.

More information about all of the above can be found in the news section of the Company’s website at http://www.globalgraphics.com/news/

Financial highlights for the quarter and nine months ended 30 September 2015

The following information is unaudited.

For the quarter ended 30 September 2015

·        Revenue for the quarter was €2.98 million (2014: €3.28 million).

·        The Company’s measure of adjusted operating profit or loss for the quarter was a profit of €0.10 million (2014: €0.98 million profit).

For the nine months ended 30 September 2015

·        Revenue for the period was €11.37 million (2014: €8.62 million).

·        The Company’s measure of adjusted operating profit or loss for the period was a profit of €3.08 million (2014: €1.98 million profit).

Non-recurring other expenses
During the quarter the Group expensed an amount of €0.15 million in relation to the expenses involved with the acquisition of URW.  No additional amount is expected to be incurred in relation to this matter.  The amount is not included in the aforementioned measure of adjusted operating profit for the quarter or nine months ended 30 September 2015.  It will be included in the unadjusted reported operating result for the current financial year in the Company’s year-end consolidated financial statements.

Cash
Cash at 30 September 2015 was €2.52 million (2014: €1.61 million).  The Group continues to have no outstanding debt, therefore, no interest payments or capital repayments out of cash flow are required.

Effect of URW
URW is included in the Group’s financial reporting with effect from 15 September 2015.  During the quarter, URW contributed revenue of €48,368 and an operating profit of €8,164 to the Group’s results.  The operating profit excludes any acquisition related expenses and amortisation that may arise from the acquisition accounting.

The net effect on cash during the period as a result of the acquisition was a reduction of €1.16 million.  The net outflow was made up of €2.00 million paid out for consideration, offset by €0.84 million of cash balances acquired.

Segment sales analysis

About Global Graphics
Global Graphics (Euronext: GLOG) http://www.globalgraphics.com is a leading developer of software platforms on which our partners create solutions for digital printing, digital document and PDF applications. Customers include HP, Corel, Quark, Kodak and Agfa. The roots of the company go back to 1986 and to the iconic university town of Cambridge, and, today the majority of the R&D team is still based near here. There are also offices near Boston, Massachusetts and in Tokyo.