Hybrid Software Group has reported consolidated pre-tax profits for continuing operations of 4.57m Euro for 2021, compared 1.69m Euro in 2020.
Commenting on the financial year ending 31 December 2021, CEO Mike Rottenborn said: “2021 was a remarkable year for Hybrid Software Group. Despite the shadow of the lingering Covid-19 pandemic, we were able to successfully conclude two major acquisitions, rebrand the group to reflect our focus on software for inkjet manufacturing, re-energise the core Rip business of Global Graphics Software, and more than double our revenue from 2020 largely due to the acquisition of Hybrid Software, while increasing our EBITDA to 25% and our cash position to more than 9m Euro.”
He added: “With another acquisition already under our belt in 2022, I look forward to the continued growth and success of Hybrid Software Group and all our customers worldwide.”
Executive chairman, Guido Van der Schueren added: “The acquisition of Hybrid Software in January 2021 broadened our focus from OEM component sales to high-margin enterprise software for both OEMs and end users, and we wasted no time integrating Hybrid Software into the group. Despite the challenging business environment in 2021, we were able to grow revenues by nearly 25% and EBITDA by more than 20% when compared to the combined operating results of the previously separate entities in 2020. We have many plans for 2022 and beyond to leverage the power of the full group and combine our OEM products with our end user products and sales channels to achieve further growth. With these results, we remain firmly on track to achieve our target of €100 million revenue and €35 million EBITDA in 2026.”
The 2.88m Euro increase in pre-tax profitability for continuing operations was due to: an increase in revenue of 26.07m Euro; an increase in cost of sales of 3.23m Euro; an increase in selling, general and administrative expenses of 13.86m Euro; an increase in research and development expenses of 5.66m Euro; a decrease in other operating expenses of 0.03m Euro; an increase in other income of 0.03m Euro; an increase in net finance income of 0.55m Euro; an increase in foreign exchange losses of 1.05m Euro.
Revenue for the printing software segment (previously named ‘software’) included sales by ColorLogic from November 2021 and totalled 13.84m Euro for the year (2020 12.67m Euro). Revenue for the printhead solutions segment was 13.98m Euro for the year (2020 9.82m Euro). Revenue for the enterprise software segment (a new segment in the year as a result of the acquisition of Hybrid Software in January 2021) was 20.74m Euro for the year.
Gross profit for the period increased to 82.5% of revenue (2020 76.7%), primarily due to the higher mix of software related sales during the year, particularly higher margin sales to end users by Hybrid Software.