Losses at Trafford-based printing firm Grafenia have widened, the firm has revealed in its full-year report.
The firm reported losses came in at £2.82m for the year ended March 31, compared to £950,000 a loss for the year previous.
However, Grefenia’s turnover increased by nine per cent to £14.63m, up from £15.96m the year previous.
Gross profit also increased by 2.5 per cent to £8.55m, up from £8.34m the year previous.
Grafenia CEO Peter Gunning said the industry was facing a “perfect storm”.
He said: “Most businesses are facing rising costs, shrinking volumes, falling demand and increased competition.
“Capacity is coming out from our sector, but not quickly enough.
“Every day we decrease our reliance on traditional print sales, but we need to move faster.”
Most Read
Grafenia chair Jan-Hendrik Mohr said the results include several “one-time” cost items or that constitute up-front costs, rather than ongoing operating costs.
The firm’s “up-front costs” include for its start-up business, Nettl, a same-day printing service which the firm has launched in the US.
Ms Mohr said: “We have invested heavily in legal expenses, travel and salaries for the launch of Nettl of America.”
Over 220 Nettl partner locations are now operating in 8 countries, with a second Nettl Superstore open in Exeter, the firm said.
Ms Mohr also gave the example of its improvement program in our finance function as a “one-time” cost.
She said: “We decided to improve our financial capabilities to support our strategy.
“To that end, we have hired new team members and have had to part with others.
Don’t miss
“The entire process was overseen very well by Simon, our interim FD, and we are now seeing significant progress.
“Such restructuring does increase costs in the short-term, but we strongly believe it’s a worthwhile investment, given the planning and reporting requirements of our journey.”
She added: “While it is not easy to put a precise number on both examples, it’s safe to assume they each cost us substantial amounts each in the last fiscal year.”
Among its operational highlights for the year include the upgrade of its Manchester production hub, which is now completed, and the relocation of Image Group to Trafford Park Hub, completed in July.