In its results for the financial year ended 31 December 2022, the company recorded revenue of €46.7m (£41.1m), down from €48.6m in 2021. Its pre-tax profit was €1.84m, down from €4.57m in 2021, and its EBITDA for continuing operations was €10.9m, down from €12.2m in 2021.
By division, revenue for Printing Software was €15.3m, up from €13.8m in 2021, while Printhead Solutions revenue was down from €14m in 2021 to €8.66m.
It said Printhead Solutions was severely impacted in 2022 by the shortage of its most commonly used chip until a critical circuit board was redesigned using a different component midway through the year.
Revenue for Enterprise Software was €22.8m, up from €20.7m in 2021.
Gross profit for the period increased to 84.2% of revenue, from 82.5% in 2021, primarily due to the higher mix of software related sales during the year, particularly higher-margin sales to end-users by Hybrid Software.
Included in selling, general and administrative expenses was amortisation of €1.17m (compared with €0.84m in 2021) related to intangible assets recognised as a result of acquisitions.
The third quarter results were favourably impacted by the sale of an unused asset (around 69,000 IPv4 internet addresses) for a net amount of €3.3m, which closed in July. This was not included in the company’s revenue figures but was accretive to EBITDA.
Total operating expenses increased by €4.98m from 2021, primarily due to higher sales and marketing related expenditures, increased amortisation expenses, and higher staff costs resulting from the acquisitions of ColorLogic and Hybrid Iberia in Q4 2021, and iC3D in Q1 2022.
Hybrid Software Group CEO Mike Rottenborn said: “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 £4m 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.”
He added: “Despite all the challenges, we completed two strategic acquisitions, sold an old and unused intangible asset for net €3.3m, 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 focused on markets that are trending upwards, and strong cash position of €6.3m.”
