Manchester-based printing and software firm Grafenia is on the look out for new acquisitions and is eyeing future growth despite not getting "to where we wanted to be" during its latest financial year.
The AIM-listed business has said it expects to report a revenue of about £9.5m for the 12 months to March 31, 2021, down from £15.6m.
The company said while it was a "significant" fall in product sales, income from subscription fees and services was steadier.
Grafenia added that its gross profit is set to be about £5.6m, down from £8m, while its gross margin has increased as a percentage and its net loss is expected to be lower than the prior year.
In a statement issued to the London Stock Exchange, the company said: "Trading in January and February this year was the most challenging.
"As winter turned to spring, revenue in March 2021 improved and was 80% of the same period last year.
"This April has started well, as businesses in England begin to pull up the shutters and prepare to re-open.
"Given that last April, the whole country was watching Tiger King in the first lockdown, it shouldn't be difficult to beat last year's performance."
The group also said that it has started reorganising its internal reporting and simplifying its structure and will now start reporting its two business units, Works Manchester and Nettl Systems, independently.
Grafenia's statement added: "We will double down on the software part of Grafenia.
"With Nettl + w3p Flyerlink we own a pretty nice little nucleus: a profitable, entrenched and appreciated software business.
"Now we're looking to acquire other software businesses to complement our group, under the plc umbrella.
"We're not starting from zero - because we already own one such software firm."
On the group's future, it said: "The road to economic recovery looks a little hazy.
"Are those sunlit uplands? Or did someone start a fire in the top field? Tricky to say.
"We made significant and permanent reductions to our overhead base during 2020, to reduce our breakeven point.
"There's lots of reason to believe our clients will reopen to increased demand.
"Events will restart. Diners will feast. Drinkers will sip, or gulp. And when they do, we'll be ready. In hundreds of neighbourhoods, ready to design. To make. To ship. All using our software platform to smooth the process."
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