Business
Trading Statement and Acquisition Strategy
Trading Statement and Acquisition Strategy.
About this update from Software Circle Plc
[{"type":"text","content":"\n \n \n RNS Number : 5754H\n Grafenia plc\n 25 March 2020\n \n \n \n The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (\"MAR\"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.\n \n 25 March 2020\n \n \n \n \n Grafenia plc\n \n \n (\"Grafenia\", the \"Group\" or \"Company\")\n \n \n \n \n Trading Statement and Acquisition Strategy\n \n When releasing our Interim Results on 27 November 2019, we gave two pieces of guidance in our outlook. Firstly, to be EBITDA breakeven on a monthly run-rate basis by the end of the year (31 March 2020). Secondly, we stated our goal was to reach an EBITDA margin of 10-15% in the mid-term.\n \n Trading in the second half of the year has been mixed. Some months were slightly ahead of the same period last year and some months slightly behind. By February 2020, we had completed a restructuring exercise to reduce our cost base by a further £0.5m on an annualised basis. This was in addition to measures we had already implemented during the summer, when we combined two factories. We were on-track to achieve our first goal of EBITDA breakeven.\n \n March, April and May are usually strong sales months, buoyed by events and exhibitions. Since the start of the coronavirus crisis, nearly every exhibition or event has been cancelled or postponed. Whilst sales have been softer than usual, they have not ceased. We continue to service clients and substitute alternative products. Clients have looked for help with their own \"plan B\", to offset business lost from events they planned to attend. We've seen more interest in online alternatives, as clients adjust to the current situation. Examples include restauranteurs needing to add online takeaway menus and personal trainers or martial arts and yoga instructors delivering video sessions which are booked, paid for and delivered by webcam.\n \n Unfortunately, many of our clients were forced to close yesterday, in line with Government restrictions. Our near-term sales visibility has become clouded. We are taking all possible steps to control overheads during the crisis, but the trading envir...