Global Graphics saw revenue from its printhead solutions segment jump by 43% to 9.82m Euro in the year ended 31 December 2020.
The group, which sold its fonts business in May last year, showed an overall consolidated pre-tax profit of 1.69m Euro for ongoing operations compared with a loss of 0.52m Euro in 2019.
The increase in profitability of 2.21m Euro was due to: an increase in revenue of 4.02m Euro; an increase in cost of sales of 1.80m Euro; an increase in selling, general and administrative expenses of 0.88m Euro; a decrease in R&D expenses of 0.22m Euro; an increase in other operating expenses of 0.04m Euro; an increase in net finance expenses of 0.02m Euro; and an increase in foreign exchange gains of 0.71m Euro.
Gross profit for the period declined to 76.7% of revenue (2019: 81.3%), primarily due to the higher proportion of driver electronics revenue, which generates a lower profit margin than software sales.
CEO Mike Rottenborn said: “Four events deserve special mention. First, the revenue in our printhead solutions segment increased by 43% over the same period in 2019 as Meteor’s industrial inkjet customers continued building ever-larger printers. Second, we were able to conclude the sale of our URW Type Foundry business to Monotype in May, a good outcome for all parties. Third, Global Graphics Software received a prestigious Queen’s Award for Enterprise for our innovative products in inkjet screening and quality. And finally, we concluded the year by announcing the purchase of Hybrid Software, which will open up many new opportunities for Global Graphics in the fast-growing labels and packaging segments.
“Although the pandemic is far from over, we see the recovery beginning for many of our OEM customers, and Global Graphics is on a very strong footing to support them throughout 2021 and beyond.”
Global Graphics chairman Guido Van der Schueren added: “The pandemic changed many things, but it did not slow the pace of innovation by either Global Graphics or Hybrid Software, and it’s exciting to see the integration taking place following the acquisition of Hybrid Software. This is transformative for Global Graphics, nearly doubling the headcount and revenue of the group and putting it in a much stronger position to lead the digital transformation in labels and packaging as well as other industrial inkjet segments.”