Hybrid Software : 2024 annual report and financial statements

Published: 2025-04-03 12:05:05 ET HYSG.BR

2024

ANNUAL REPORT

Hybrid Software Group PLC annual report and ﬁnancial statements for the year ended 31st December 2024.

Contents

HYBRID SOFTWARE GROUP

Our company

Digital revolution in print manufacturing

Our value propositions

A year in review

Our markets

Our business segments

COMPANY STRATEGIC REPORT

Chairman's statement

CEO's review

CFO's review

Principal risks and uncertainties

Section 172(1)

Environmental matters

Social and community

Employee matters

GOVERNANCE

Board of directors

Directors' report

Corporate governance report

Audit committee report

Directors' remuneration report

Independent auditor's report

FINANCIAL STATEMENTS

Consolidated statement of comprehensive income

Consolidated statement of ﬁnancial position

Consolidated statement of changes in equity

100

Consolidated statement of cash ﬂows

101

Notes to the consolidated ﬁnancial statements

102

Company statement of ﬁnancial position

138

Company statement of changes in equity

139

Notes to the company ﬁnancial statements

140

OTHER INFORMATION

147

Glossary

148

Hybrid Software Group PLC | Annual Report 2024

HYBRID SOFTWARE

GROUP

Through its business units and subsidiary companies, Hybrid Software Group PLC

(Euronext: HYSG) is a leading developer of enterprise software and printhead drive electronics for packaging and industrial print manufacturing. Customers include press manufacturers such as HP, Canon, Durst, Roland, Hymmen, as well as global brands, consumer packaged goods companies, retailers, and thousands of packaging printers, trade shops, and converters worldwide.

Hybrid Software Group PLC is headquartered in Cambridge UK. Its subsidiary companies are colour technology experts ColorLogic, printing software developers

Global Graphics Software, enterprise software developer Hybrid Software, 3D design and modelling software developers iC3D, industrial printhead drive solutions specialist Meteor Inkjet, and pre-press workﬂow developer Xitron.

Our company

Hybrid Software Group PLC is a public limited-liability company registered in England and Wales with its shares traded on Euronext Brussels under stock code HYSG. It is headquartered near Cambridge, UK. The Company employs approximately 280 employees worldwide and has a pedigree stretching back more than 30 years.

Hybrid Software develops innovative technology for industrial print manufacturing processes that use inkjet and other printing techniques. The technology is critical because eﬃciency and sustainability concerns are driving the conversion of manufacturing processes from traditional analogue methods to just-in-time digital production using inkjet printing. Applications for inkjet printing include a diverse range of goods, from labels and packaging, to textiles, tiles, laminates, wall coverings, additive manufacturing and 3D printing applications.

Our investment case

→ Inkjet adoption is increasing rapidly across multiple industry sectors.

→ Analogue markets are converting to digital production.

→ Hybrid Software enables customers to migrate their traditional manufacturing processes to digital inkjet.

→ Hybrid Software is the only vertically integrated supplier to this market, supplying products and technology to both manufacturers of digital printing equipment and to manufacturers of packaging and other printed goods who operate them.

→ Component businesses are award-winning technology leaders.

→ Synergies between companies in the Company, following strategic acquisitions made in recent years, will accelerate innovation and revenue growth.

The Company is the only full-stack supplier of all the critical core technologies needed for inkjet printing. Our principal customers are Original Equipment Manufacturers (OEMs) of digital printing equipment, including high-speed digital production presses, professional colour prooﬁng devices, wide format colour printers, and industrial inkjet printers for ceramic tiles, packaging, textiles and additive manufacturing, as well as end users, primarily printing companies who purchase these devices to print and convert labels and packaging materials. Hybrid Software has traditionally provided software components and printhead drive electronics to OEMs to enable them to build their own solutions.

Industrial print manufacturing is when printing technology is used in broader manufacturing processes where it isn't the print itself that is being sold.

However, the strategic acquisitions made in recent years now enable the Company to provide full turnkey solutions for OEMs that enable them to bring new digital printing devices to market faster and with higher quality. These solutions are higher value and provide more revenue to the Company per device installed. Furthermore, the OEM business is synergistic with the Company's end-user products, accelerating revenue growth and increasing the Company's market share in the inkjet space. Guido Van der Schueren, Executive Chairman, shares,"We will continue to deliver leadership in software and electronics for industrial printing and packaging, driven by the intelligence and passion of our people."

The team poses for a photo during the successful exhibition at the drupa trade fair in Düsseldorf, Germany.

Hybrid Software Group PLC has oﬃces around the world and is headquartered near Cambridge, UK.

Digital revolution in print manufacturing

The print manufacturing market is transitioning from analogue to digital at a rapid pace. A number of factors have combined to accelerate this change: supply chain disruption caused by changing consumer demand for customised products, and the growing realisation that the way for manufacturing industries to increase their business is to go digital.

At the heart of this change in the printing market are the innovations taking place in digital inkjet printing. Inkjet printing makes it possible to change what is being printed in real time on every object. It can be inserted at diﬀerent points in the production process, for instance during product decoration, packaging or labelling. In addition, inkjet can print on any surface, resulting in a revolution in the way in which goods are produced and packaged and the speed with which they are ready for market.

Analogue versus digital workﬂow

In an analogue workﬂow, graphic designs are transferred to a printing plate which is fed to the press to produce multiples of the same item. In a digital workﬂow, a PDF ﬁle created by the designer encapsulates all the data required for printing. The PDF ﬁle is submitted to the digital printing press via a Digital Front End (DFE), and can contain diﬀerent images and text for each product produced using a technology known as Variable Data Printing (VDP).

A typical labelling workﬂow

Specialised software is used to prepare the PDF ﬁle for printing. This may include merging a data stream to generate QR codes or barcodes for product identiﬁcation or security purposes; colour management to accurately match speciﬁc brand colours; layout tools to ensure the most economical use of raw materials; portals to review and approve the artwork on screen; and enterprise software for workﬂow automation.

Other software embedded in the printing process ensures high-quality output through rasterisation and screening depending on the speciﬁcations of the printing device. As many as seven colours plus white and clear inks may be jetted with diﬀerent sizes of ink drops to achieve the desired output after careful calibration to the printing device.

Analogue

Digital

Digital print for manufacturing

Printing is part of the manufacturing process for thousands of products that touch our everyday lives, as the illustration shows below. Inkjet is the technology driver for digital conversion of these processes and makes it possible to produce products that were simply not possible with analogue processes, such as customising vehicles, garage doors, or even jetting onto the side of aircraft. Hybrid Software Group enables its customers to migrate their traditional manufacturing processes to digital inkjet printing.

Digital print onto cereal boxes, wine bottles, beer cans...

Digital décor printing onto ﬂoors and surfaces

Our value propositions

Hybrid Software is the only full-stack supplier of all the critical core technologies needed for inkjet printing. With a third of our headcount working in engineering and approximately 20% of revenues reinvested in R&D, we are dedicated to innovation on behalf of our customers and maintain a strong IP position with numerous patents.

Original Equipment Manufacturers (OEMs)

Our value proposition to OEMs of industrial digital printing equipment, typically featuring inkjet technology, is to oﬀer turnkey solutions and individual components to enable them to migrate analogue processes to digital and to bring new digital printing devices to market faster and with higher quality.

Print service providers and converters

Print service providers and converters are industrial manufacturers of products, such as labels, cartons, tiles, displays, fabrics, ﬂooring, décor, etc. which are typically produced using digital printers made by OEMs.

Our value proposition here is to oﬀer a complete set of software applications to maximise eﬃciency in production workﬂows.

A year in review

Hybrid Software appoints Steven Steenhaut as Chief Marketing Oﬃcer

From Hybrid Software's oﬃces in Ghent, Belgium, Steven Steenhaut spearheads group marketing activities across the company's six business units, building a uniﬁed eﬀort and market presence.

Steenhaut has spent most of his career in sales and marketing, primarily in high-tech and

IT companies-particularly software-spanning a number of global regions.

ColorLogic names Victor Asseiceiro as Operations Manager

Victor Asseiceiro brings over 20 years of experience to his new role at ColorLogic, covering the entire print value chain and specialising in areas such as packaging, ceramics, sign and display, and commercial print.

His expertise extends to both conventional and digital printing technologies and a deep understanding of production processes and colour applications that enhance global sales and distribution channels.

Hybrid Brandz launches with dedicated teams in Europe and the Americas

2024 saw the launch of Hybrid BrandZ, Hybrid Software's new business unit servicing brand owners, retailers, and consumer packaged goods companies.

Established sales and support teams are present locally in Europe and North America.

The ﬂagship product Artﬂow is a SaaS-based artwork management solution that streamlines complex graphical projects. Dedicated

3D solutions round out the oﬀering including iC3D software for product visualisation and prototyping.

Hybrid Software hosts generative AI experience with Diageo

At Johnnie Walker Princes Street in Edinburgh, visitors were invited to explore the world of direct and variable on-site bottle printing. Championed by Diageo, its mission is to propel brands to success by pioneering cutting-edge technology with personalised consumer experiences.

The unique and innovative integration with AI technology moulds a special connection between the brand and the consumer, aiming to reinforce brand recogniton and loyalty and was awarded:

- Global INNIES Award - "Forging New Frontiers"

- The Lovie Awards - "Best Integrated Use of AI"

- PAC Global Awards - "Best in Show"

Global Graphics Software expands partnership with Mark Andy to drive state-of-the-art high-speed press

Leading provider of label and print solutions, Mark Andy, extended its license for SmartDFE™ to drive its new state-of-the-art Digital Series HD HighSpeed 1200 press. A game-changer for the industry, the press sets a new standard, doubling the speed of its predecessors at 1200dpi resolution and establishing it as the fastest narrow web digital press in the marketplace.

It is driven by Mark Andy's new ProWORX Digital Front End, powered by SmartDFE, which enhances productivity by optimising prepress workﬂow and colour management.

Xitron launches new K2 oﬀset workﬂow

Based on the powerful Harlequin Core™ RIP, K2 boasts a feature list that reads like a "Who's Who" of leading-edge prepress technology.

The code base is strictly Xitron, but incorporates knowledge from business units ColorLogic, Global Graphics Software, and Hybrid Software for preﬂighting, PDF-based interactive trapping, ink remapping, and colour management. K2 also integrates Ultimate Tech's Impostrip Oﬀset Pro for dynamic and intuitive imposition.

By leveraging the best technologies available today, and constructing a strong UI to harness them, K2 quickly climbs to the top of the mountain while balancing productivity, ease of use, and aﬀordability.

Our markets

Hybrid Software's markets include labels and packaging, ceramics, textiles, 3D printing and additive manufacturing. In each of these segments, inkjet technology is giving brands the ﬂexibility to respond to changing customer demands by just-in-time digital production, and to create products that would not be possible using analogue production methods. Set against the transition to digital printing, another trend is at play: manufacturers of digital printing devices are looking for turnkey or SaaS solutions that are fast and ﬂexible enough to power the next generation of digital inkjet printers at blistering production speeds. The Company's software engineering expertise allows it to develop solutions to meet and exceed these requirements.

Our markets

Labels and packaging

This market requires specialised knowledge and advanced software solutions to provide the speed and precision required for high-volume production of labels and packaging.

Hybrid Software oﬀers OEMs and print service providers the full gamut of expertise required, from 3D visualisation of packaging designs, faithful reproduction of brand colours, layout and prooﬁng tools, to the high-speed processing of variable data for personalisation.

Flexibility

Whilst packaging produced by the ﬂexographic process accounts for the largest share of the market in Europe and the US, the share of digitally printed labels and packaging is rising signiﬁcantly. This is due to a number of factors, not least its ﬂexibility whereby short runs can be produced quickly in response to changing consumer demand. Most packaging in Asia is still printed with gravure cylinders, but this is also migrating toward ﬂexographic and digital printing methods. Asia is projected to be one of the highest growth areas for digital label printing over the next ﬁve years.

Innovation

There have been many exciting developments in recent years with water-based inks, paper pouches, ﬂexible ﬁlms and recycled materials. One such is Direct-to-Shape printing which prints the product "label", including full-colour images, text linework, and other special eﬀects directly onto cans, bottles, sleeves and other shaped objects as an in-line step in the manufacturing process.

(a) Smithers.https://www.smithers.com/services/market-reports/printing/the-future-of-digital-printing-to-2032

(b) The Business Research Company.https://www.thebusinessresearchcompany.com/report/packaging-printing-global-market-report

Sustainability

The rising prominence of the ESG - Environmental, Social and Governance - agenda, new legislation, and consumer pressure are fuelling practical measures to reduce environmental impacts. One of the ﬁrst steps towards sustainability is the reduction of waste, and since digitally printed packaging can be produced in very precise quantities, the digital conversion of packaging will continue to be driven by sustainability initiatives.

Smart factories

A closer look

To meet demands from consumer brands that seek to incorporate inkjet printing into their production lines, the Company developed SmartDFE™, an AI-powered Digital Front End that adds print into Smart Factory and Industry 4.0 environments. The solution won a PRINTING United Pinnacle award for Technology in 2023 and is in full-scale production with a number of OEM partners, including Mark Andy and Dantex Group.

According to "The Future of Digital Printing to 2032" (a), in 2032 digital print will account for almost a quarter of the global value of all print and printed packaging by value, worth US$ 230.5 billion. The same report indicates that inkjet will increase to account for 74.1% of digital print value and 77.5% of volume in 2032.

The current market size of the packaging printing market will continue growing steadily from $474.1 billion in 2024 to $730.43 billion in 2029. (b)

The growth in the forecast period is attributed to pharmaceutical packaging, sustainable packaging, health and safety concerns, global supply chain, customisation and personalisation. Major trends in the forecast period include technological advancements, sustainable packaging, digital printing technology, 3D printing, and security printing. (b)

Disclaimer

Hybrid Software Group plc published this content on April 03, 2025, and is solely responsible for the information contained herein. Distributed via , unedited and unaltered, on April 03, 2025 at 16:04 UTC.