Hybrid Software Group has reported a ‘year of mixed results’ in 2022, although is anticipating, ‘a much higher level of growth and profitability in the very near future,’ as noted by the company’s executive chairman, Guido Van der Schueren.
For last year, the group reported revenue of €46.7 million and EBITDA of €10.9 million. These were both down versus 2021’s figures – €48.5 million and €12.2 million respectively. Profit from continuing operations fell from €4.9 million to €1.3 million. Consolidated pre-tax result for continuing operations was €1.8 million compared with a profit of €4.5 million in 2021. The decrease in profitability of €2.7 million was due to: a decrease in revenue of €1.9 million; a decrease in cost of sales of €1.1 million; an increase in selling, general and administrative expenses of €4.4 million; an increase in research and development expenses of €0.78 million; a decrease in other operating expenses of €0.18 million; an increase in other income of €3.27 million; an increase in net finance expenses of €0.79 million; and a decrease in foreign exchange losses of €0.55 million.
By segment, revenue for Printing software was €15.3 million for the year, versus €13.8 million the year previously. Revenue for the Printhead Solutions was €8.7 million for the year, versus €14 million. This segment was severely impacted by the shortage of its most commonly used chip until a critical circuit board was redesigned using a different component in mid-2022, Hybrid Software Group noted in its financial results statement. Revenue for Enterprise Software was €22.8 million for the year, versus €20.7 million.
Gross profit for the period increased to 84.2% of revenue, primarily due to the higher mix of software related sales during the year, particularly higher margin sales to end users by Hybrid Software.
Access the company’s full 2022 financial results here.
Hybrid Software Group CEO Mike Rottenborn commented, ‘We entered 2022 with bullish growth projections until the economic downturn began to affect our OEM and our end-user business. In addition, during the first half of the year our revenues were impacted by the global shortage of semiconductor chips. Meteor Inkjet’s revenue fell short of projections by more than £4 million during this period. Their team quickly redesigned a critical circuit board using a chip that was more widely available, but the lost first-half revenue was not fully recovered in 2022. I’m pleased to say that 2023 has started very strongly for Meteor, with revenues recovering to healthy levels and demand from China increasing rapidly.
‘Despite all the challenges, we completed two strategic acquisitions, sold an old and unused intangible asset for net €3.3 million, achieved four new patents, and drew the constituent parts of the business closer together into one company, reorganising R&D resources and pushing ahead with product innovation to the benefit of our customers. There’s no doubt that Hybrid Software Group has emerged from 2022 as a stronger company. We have best-in-class technology, a sound business plan focussed on markets that are trending upwards, and strong cash position of €6.3 million.’
Group executive chairman Guido Van der Schueren said, ‘2022 was a year of mixed results and we fell short of our growth projections in both revenue and net profit. We acted quickly in response, taking prudent steps to conserve cash and reduce our cost structure, especially external spending. But we never sacrificed the long-term value of Hybrid Software Group. We did not cut any of our key personnel or reduce R&D spending, and if anything, we stepped up our sales efforts and increased the company’s presence at key trade shows and industry events. We have broadened our potential customer reach by offering successful products for all digital printing applications and I anticipate a much higher level of growth and profitability in the very near future.’
