In summary of its activities, Punch says it has discontinued loss-making activities, improved its balance sheet structure, recorded total sales EUR 163m with an operating result of EUR 22.2m and a net result of EUR 15.7 million.
Among the highlights of the year, Punch Graphix launched two new digital colour printers, the Xeikon 4000 and Xeikon 5000plus in February 2007.
In July 2007, Punch Technix nv acquired 97 per cent of the shares of Punch Graphix plc, partly through a capital increase (EUR 70.1m) and partly through purchase (EUR 119m). Following this transaction the existing shareholders increased equity by EUR 9.6 million (in cash) and Punch Technix nv changed its name to Punch Graphix nv.
Sales of digital printing solutions fell by around 3 per cent owing to lower
sales in the United States and the Asia-Pacific region. Around half of
the fall is due to exchange rate differences. Growth recorded in Europe
was 4 per cent below the market growth rate. Sales of prepress solutions
(basysPrint) increased by 6 per cent, which was in line with market growth.
Equipment sales dropped by 4 per cent. Despite a negative currency effect, recurrent income (consumables and service) recorded a net increase of 3 per cent, thanks to the growing number of machines installed at customers.
During the past financial year the group concentrated its efforts mainly on the integration of the activities of the former Punch Technix nv and Punch Graphix plc and the sale of the loss-making activities.
Strategically important functions were largely centralised and the group's fixed cost structure was adapted to the new strategic plan. The trends in the segment results were largely due to the implemented reorganisation and centralisation. Although this operation has not yet been completed, management has taken the view that the organisation is now sufficiently prepared for an expansion of activities, either through internal growth or through acquisitions.
In December 2007, Punch Graphix nv increased its capital by EUR 62.6m, half placed by institutional investors, half through debt conversion and Punch Graphix nv acquired another 2 per cent of the shares of Punch Graphix plc (approximately EUR 5m).
With effect from January 1, 2008 Wim Deblauwe was appointed CEO of Punch Graphix nv, succeeding Ben Van Assche, who became a member of the Supervisory Board.
More big news came for Punch Graphic in January when the company signed a contract with US-based MacDermid Printing Solutions, the world's largest supplier of printing plates for newspapers. The contract is for the supply of 15 basysPrint F-series UV-setters.
Looking forward, Punch Graphix has expressed its desire to expand and strengthen its international presence, especially in the fast-growing markets of the United States and the Asia-Pacific region (including Australia and New Zealand).
Close contact with customers through a streamlined and specialised sales and service organisation is of decisive importance to deliver optimum customer service and sustained success. Punch Graphix aims to be a top-3 player in each market segment or niche market where it is active.
Punch Graphix is active in specific niche segments of the graphics industry. External market studies project a significant growth in the market segments where the company is active.
The digital printing segment is expected to expand by around 14.6 per year per year until 2015; and in the prepress segment, sales of CtP machines are projected to expand by around 12.5 per cent until 2009.
The group says it is currently one of the top-3 players worldwide in both segments. Hence the group’s ambition is to post growth in the coming years which is at least in line with the market growth.
Based on its combination of knowledge and technology, Punch Graphix says it will continue to explore the market and concentrate on those niches where its proven technology and customer-oriented approach provides a competitive advantage for all those involved.
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