ANNUAL
REPORT
2025
Hybrid Software Group PLC annual report
and financial statements for the year
ended 31st December 2025
3
Hybrid Software Group PLC
|
Annual Report
2025
HYBRID SOFTWARE GROUP
5
Our company
6
Digital revolution in print manufacturing
10
Our value proposition
14
A year in review
16
Our markets
21
Our business segments
33
COMPANY STRATEGIC REPORT
51
Chairman’s statement
52
CEO’s review
54
CFO’s review
56
Principal risks and uncertainties
60
Section 172(1)
68
Environmental matters
70
Social and community
72
Employee matters
73
GOVERNANCE
77
Board of directors
78
Directors’ report
80
Corporate governance report
86
Audit committee report
88
Directors’ remuneration report
89
Independent auditor’s report
98
FINANCIAL STATEMENTS
107
OTHER INFORMATION
159
Glossary
160
Contents
HYBRID
SOFTWARE
GROUP
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.
Its brands comprise: Labels & Packaging Software,
Colour (derived from the 2022 acquisition of ColorLogic
GmbH), Helix (formerly Global Graphics Software
),
Brandz (including the 2022 acquisition of 3D software
supplier iC3D, and the 2025 acquisition of Tallon Graphics
Solutions), and Conics, a Belgian integrator and software
developer acquired in 2025. Other businesses include
industrial printhead drive solutions specialist Meteor
Inkjet, and the pre-press workflow developer and interface
supplier Xitron.
Our company
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Our company
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.
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 more than 300 employees
worldwide and has a pedigree stretching back more than 30 years.
Hybrid Software Group PLC has offices around the world and is
headquartered near Cambridge, UK.
The team poses for a photo during the successful exhibition at Labelexpo Europe in Barcelona.
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.
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.
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.”
Industrial print manufacturing
is when printing technology is
used in broader manufacturing
processes where it isn’t the print itself
that is being sold.
6
7
CONICS
Our company
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Connecting the world of print and
packaging.
Hybrid Software’s suite of technology businesses
empowers brands, pre-press agencies, converters, and
OEMs with intelligent tools across artwork management,
prepress, colour management, production workflow and
OEM software, delivering efficiency, innovation, and
collaboration across the graphic arts value chain.
8
9
Digital revolution in print manufacturing
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
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.
Jobfile
Computer
to plate
Prepress
Offset
printer
Digital
printer
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).
Analogue
Digital
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.
10
11
Digital revolution in print manufacturing
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
3D printed
art
Digital textile printing
onto furnishings
and curtains
Functional printing
onto screens
Photovoltaic
printing onto
solar panels
Digital décor
printing onto floors
and surfaces
Digital print onto
cereal boxes, wine bottles,
beer cans...
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 textile
printing onto
bedsheets
Glass printing
onto windows
Direct-to-shape digital
printing onto cosmetic
tubes
Digital inkjet
printing onto
corrugated boxes
Industrial / functional
printing onto car windscreens
and interiors
2024 Copyright © Adobe Stock
12
13
Our value propositions
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
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.
14
15
A year in review
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report 2025
16
17
A year in review
Global Graphics Software
rebrands as Hybrid
Software Helix
Global Graphics Software
announced its new brand
identity: Hybrid Software
Helix. The name reflects the
company’s evolution into a
trusted provider of embedded,
intelligent software components
at the heart of industrial
print systems. It also signals
its commitment to ongoing
innovation, its deep-rooted
connection to Cambridge, and
its role in shaping the future of
digital print.
“We may have a new name, but
our values remain the same,”
said Managing Director Justin
Bailey. “Helix continues to be
defined by trust, collaboration,
and a relentless focus on
innovation.”
November 2025
Hybrid Software puts AI
in practice at Labelexpo
Europe
At Labelexpo Europe in
Barcelona, Hybrid Software
introduced Matches - AI-
based software for intelligent
job similarity search, and
showcased SmartDFE, its
intelligent digital front end
platform that powers high-
speed presses from Mark Andy,
Dantex, Weigang, Flora, and
other manufacturers.
All AI solutions are built on
private large language models to
protect customer data security,
positioning Hybrid Software
as a leader in AI offerings with
tangible ROI for the packaging
industry.
September 2025
Hybrid Software Helix
receives King’s Award for
Enterprise for Innovation
Hybrid Software Helix, formerly
Global Graphics Software,
received the UK’s prestigious
King’s Award for Enterprise
for Innovation, recognising its
SmartDFE™ intelligent digital
front end platform that drives
high-speed label, packaging, and
industrial inkjet presses.
The award was formally
presented in September at
the company’s Cambridge
headquarters by His Majesty The
King’s representative, Mrs Julie
Spence OBE CStJ QPM, HM Lord-
Lieutenant of Cambridgeshire, in a
ceremony attended by employees
and guests. This marks the
company’s second King’s Award,
following its 2020 Queen’s Award
for Enterprise for Innovation for
ScreenPro™ screening software.
May 2025
PACKZ 11 Launches
with Industry-First RIP
Integration
Hybrid Software unveiled
PACKZ 11, featuring PACKZ
Max with integrated Harlequin
RIP® technology that enables
precise flexo screening, 1-bit
TIFF output, and live RIP
previews directly within the PDF
editor. The release introduces
extended CF2 file format
support for folding carton with
3D visualisation capabilities and
automatic barcode conversion
supporting GS1 Sunrise 2027.
PACKZ Max unifies all flexo
prepress operations in one
platform, eliminating costly RIP
servers while maximizing print
quality and efficiency.
June 2025
CLOUDFLOW Colorspace
Wins Three Major
Industry Awards in 2025
CLOUDFLOW Colorspace
transforms complex color
management through powerful
automation, exceptional
accuracy, and seamless
integration across print
environments.
In 2025, this innovation earned
Hybrid Software two prestigious
EDP Awards, recognising
CLOUDFLOW Colorspace
as Best Color Management
Solution.
The technology also received
the esteemed Pinnacle Award
from PRINTING United Alliance
for its breakthrough approach
to streamlined, reliable color
workflows.
Most recently, CLOUDFLOW
Colorspace won the 2025 CI
Flexo Tech Innovation Award,
underscoring Hybrid Software’s
leadership in advancing
color automation and print
technology.
November 2025
Acquisition of Conics,
Offering Consultancy and
AI Innovation
Hybrid Software announced
the acquisition of Conics,
a Belgium-based software
development and consultancy
firm specialising in graphical
software selection,
implementation, and custom
integration services for the
printing and packaging industry.
The acquisition strengthens
Hybrid Software’s project
management and consultancy
capabilities while adding Conics’
AI expertise and products to
complement Hybrid’s existing
labels and packaging solutions.
Conics will operate as a
separate business unit from
its Ypres offices and continue
integrating software solutions
from multiple industry vendors
as required by customers.
September 2025
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
A year in review
18
Fusion Packaging Summit 2025
Together with industry partner sponsorship, Hybrid
Software successfully hosted the inaugural Fusion
Packaging Summit in Amsterdam from April 22-25, 2025.
The event attracted 220 attendees from 23 countries
and 14 sponsor partners for four days of innovation,
collaboration, and major industry announcements.
The summit featured 22 technical sessions and included
factory visits to three local customer partners: AV
Flexologic, Geostick, and Intergrafipak. The event
was sponsored by a strong group of industry leaders,
including ABG, Arden Software, AV Flexologic, Bobst,
CERM, Conics, Eco3/Agfa, Global Vision, HELL Gravure,
Hybrid Fusion Packaging Summit 2025 took place in the NH Collection Barbizon Palace in Amsterdam.
Hybrid Fusion brought together 220 attendees from 23 countries, along with 14
sponsor partners in Amsterdam. The Summit was four days filled with innovation,
networking, collaboration and major announcements.
HP, Infigo, Koenig & Bauer, XSYS, and Zünd.
“With a long gap between Drupa and Labelexpo Europe,
2025 was the perfect year to introduce the Fusion
Packaging Summit—a real ‘fusion’ of global brands, trade
shops, packaging converters, a large group of partners
who serve them, and our own product experts,” said
Mike Rottenborn, CEO of Hybrid Software Group. “The
results far exceeded my expectations, and we will make
Fusion an annual event, alternating between Europe and
North America.”
Hybrid Software presented product innovations,
together with customer testimonials and roundtables.
Technology Announcements
A major highlight was the unveiling of a new standard
to extend the CF2 file format for folding carton
packaging. Jointly developed by Hybrid Software and
Arden Software, and supported by partners Zünd,
Kongsberg, and EngView Systems, the extended CF2
format addresses critical gaps in the current industry
standard by adding folding angles for crease lines and
folding order for 3D viewing, while maintaining backward
compatibility. Future extensions will embed substrate
information, grain direction, and other features, adhering
to Hybrid Software’s open systems philosophy that
industry standards should remain accessible to all
participants.
David Zwang
and Marco Boer
gave highly
revelant keynote
presentations.
Attendees
visited local
Hybrid Software
customers
Geostick, AV
Flexologic, and
Intergrafipak
factories.
Fusion Packaging Summit 2026 in
Florida, United States
Fusion Packaging Summit 2026 registration is
already open, and will take place at The Westin
in Sarasota Florida, USA from April 20th to 22nd
2026.
“At Hybrid Software, we’re committed to listening
to our customers and understanding their needs
and aspirations. The Fusion Packaging Summit
provides a platform to get together with our
customers and partners in North America and
plan for the future. For the 2026 event, we’ve
booked the entire Westin Sarasota hotel for our
customers and industry partners. The diverse
agenda will provide relevant tracks for packaging
trade shops, print providers, and brands and will
cover timely topics including prepress automation,
artificial intelligence, and color management for
multiple printing technologies including flexo,
offset, gravure, and digital printing,” says CEO
Mike Rottenborn.
2026
19
A year in review
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
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.
20
21
Our markets
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Hybrid Software continues to shape the labels and packaging market through a
focused portfolio that spans prepress editing, automated workflows, and online
proofing. The company’s core platforms include PACKZ for native PDF editing,
CLOUDFLOW for enterprise workflow automation, and Proofscope for browser-based
review and approval, which together streamline design-to-print production for label
and packaging converters.
Labels and packaging
Flexibility
While packaging produced via the flexographic process
continues to hold the largest share of the labels and
packaging market in Europe and the US, the portion
of digitally printed labels and packaging is rising
significantly. The global digital packaging printing market
is valued at approximately USD 34.01 billion in 2025
and is on track to reach USD 56.12 billion by 2030,
representing a CAGR of around 10.1% over this period.
(a)
This shift is driven by digital printing’s flexibility, enabling
short runs to be produced quickly in response to
changing consumer demand. In Asia, though gravure
cylinder-printing still dominates much of the packaging
output, there is clear migration toward flexographic and
digital printing methods. Indeed the global digital label
printing market alone is estimated at USD 12.3 billion in
2025. (b)
Asia-Pacific is projected to be one of the highest growth
areas for digital label and packaging printing over the
next five years.
Innovation
In recent years the industry has seen many exciting
innovations around materials and process types. These
include advanced water-based inks, paper pouches,
flexible films, and recycled material formats. One notable
advancement is Direct-to-Shape printing, which enables
full-colour images, text line-work and other special
effects to be printed directly onto cans, bottles, sleeves
and other shaped objects as an in-line step in the
manufacturing process. Market commentary for 2025
(a) Mordor Intelligence. https://www.mordorintelligence.com/industry-reports/digital-printing-
packaging-market
(b) Future Market Insights. https://www.futuremarketinsights.com/reports/digital-label-printing-market
(c) Labels and Labeling. https://www.labelsandlabeling.com/news/market-trends/2025-predictions
(d) Sustainable Packaging. https://sustainablepackaging.org/resource/2025-trends-report
A closer look at sustainability
trends
The Sustainable Packaging Coalition’s 2025
Trends Report highlights how U.S. state-level EPR
laws and broader regulatory shifts are redefining
what qualifies as “recyclable” and are forcing
packaging producers to track and report material
flows.
In upcoming years, labels and packaging
companies’ measurement of sustainability
efforts is no longer limited to “recyclable material
used” or “weight reduced”. It must embrace
full value-chain carbon tracking, reuse/refill
models, material transformation (recycled/bio-
based content), regulatory / EPR compliance,
and verified end-of-life outcomes. Those who
invest early in establishing robust data collection,
traceability, and verified metrics will be better
positioned to meet brand-owner demands,
regulatory pressures, and consumer expectations.
emphasises that digital printing is “firmly established” as
the standard technology for labels and packaging, and
that the tipping point from analog to digital is shifting at
an unprecedented pace.(c)
Smart factories
In response to brand-owner and converter demands for
inkjet and digital printing within smart production lines,
the industry is increasingly adopting smart factory and
Industry 4.0-enabled workflows. For example, Hybrid
Software’s SmartDFE™ Digital Front End integrates
AI-based automation with digital printing equipment,
enabling print-on-demand and connectivity to enterprise
systems, and it has received recognition, including
the 2025 King’s Award for Enterprise for Innovation.
These developments underscore the trend toward fully
automated, traceable digital printing operations within
packaging production.
22
23
Our markets
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Demand for ceramic tiles continues to grow
The global market for ceramic tiles and printing is estimated at around USD 111.24 billion
in 2025, with a projected compound annual growth rate (CAGR) of ~4.9% from 2025
to 2033. (e) Digital printing has transformed how ceramic tiles are decorated, and by
the end of 2025 experts expect that over 85% of glazed tile production worldwide will
incorporate digital printing technology. (f)
Industrial ink-jet systems have largely replaced screen-printing in the ceramic tile
industry, allowing for faster turnarounds, more aesthetic flexibility and responsiveness
to new construction and renovation projects. The ceramics market remains heavily
influenced by regional economic conditions and the pace of residential and commercial
build-outs. For example, China continues to be a key producer and consumer of ceramic
tiles, while Europe maintains a strong design-led industry and other regions present
growth opportunities. (g)
Dedicated features
In this evolving environment, the company stands out by supplying advanced print-
platform electronics and software for digital tile decoration. Our solutions are engineered
for the demands of industrial ink-jet tile printing systems: high throughput, heavy
pigment inks, recirculating ink systems, anti-sedimentation features and robust nozzle
control functions. These features are critical since ceramic inks are prone to settling and
nozzles require active maintenance to ensure reliable print performance in large-scale
production.
Economical and flexible
Digital printing of ceramic tiles offers significant cost and operational benefits compared
to analogue screen-printing methods. Short production runs become economically
feasible thanks to lower setup costs, minimal change-over waste and reduced inventory
of finished goods. Other manufacturing advantages include reduced breakage due to
non-contact printing, simplified colour-matching for repeat orders and the ability to yield
realistic visuals of marble, natural stone or large-format tile layouts without repeating
patterns. These benefits align with market trends showing strong adoption of digital
decoration methods for ceramic tile production. (h)
Ceramics
Hybrid Software supports the ceramic tile printing market through its Meteor Inkjet
business unit. By delivering scalable, high-performance solutions for industrial inkjet
systems, the company enables efficient, precise, and visually stunning tile production.
(e) Data Insights Market. https://www.
datainsightsmarket.com/reports/
ceramic-tile-and-its-printing-1091653
(f) SD Tiles. https://www.sdtiles.com/
news/digital-printing-technology-
reshapes-the-futur-85145961.html
(g) Pro Market Reports. https://www.
promarketreports.com/reports/ceramic-
tile-and-its-printing-8913
(h) Data Insights Market. https://
www.datainsightsmarket.com/
reports/ceramic-tile-inkjet-printing-
machine-1517215
A closer look
The ceramics industry continues to evolve rapidly
as digital printing solidifies its dominance across
global tile production. Digital inkjet systems
are now used in over 85 percent of glazed tile
decoration, transforming design flexibility and
production efficiency. (e)
This shift supports the rising global ceramic tile
market, valued at more than USD 111 billion and
forecast to grow steadily through 2033. With
China maintaining its position as the largest
producer and Europe driving design innovation,
regional diversification is strengthening the
industry’s resilience. Digital tile printing is enabling
manufacturers to meet growing global demand for
customization, faster turnaround, and sustainable
production—all critical to the next decade of
ceramic manufacturing. (g)
24
25
Our markets
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Textiles
(i) Precedence Research. https://www.precedenceresearch.com/digital-textile-printing-market
(j) Coherent Market Insights. https://www.coherentmarketinsights.com/industry-reports/digital-textile-
printing-market
(k) Mordor Intelligence. https://www.mordorintelligence.com/industry-reports/global-digital-textile-
printing-market
(l) Research and Markets. https://www.researchandmarkets.com/reports/5511294/digital-textile-
printing-market-share
Hybrid Software Group develops advanced technologies for industrial print
manufacturing—including inkjet and other digital methods—that are central to the
drive toward just-in-time production and sustainability-led conversion of analogue
processes across sectors such as textiles, packaging, ceramics and more.
Many areas for growth
The global digital textile printing market is projected to
grow from approximately USD 3.89 billion in 2025 to
around USD 12.73 billion by 2034, representing a CAGR
of about 14.11 % over the forecast period. (i)
Cost-effective single-pass printing
Single-pass digital printing is anticipated to be the
fastest growing segment in the digital textile printing
market. Single-pass digital printing is an advanced
technique that enables rapid, efficient, and accurate
printing using specialised equipment, which requires
just a single pass to apply ink or images onto diverse
surfaces.
Driven by sustainability
Sustainability is a key driver for digital inkjet production
because it reduces water, energy usage, pollution and
waste. The latter is of special interest: the amount
of textile production ending in landfill is a particular
focus for brands who are increasingly aware of their
consumers’ demand for environmentally and socially
responsible business practices.
A closer look
Technical Textile Growth: Beyond apparel and
décor, the industrial textiles segment (automotive,
healthcare, protective fabrics) is increasingly
adopting digital print solutions, offering new
growth opportunities. (j)
Regional Near-shoring and Resilient Supply
Chains: As brands seek more flexible,
geographically dispersed manufacturing, regions
such as North America and Europe are investing
more in local digital print capacity to reduce lead
times and inventory. (k)
Advanced Ink and Fabric Compatibility: There is
significant R&D in eco-friendly inks, dark-fabric
printing, and recycled/biobased substrates,
enabling digital print expansion into premium,
sustainable textile categories. (l)
2024 Copyright © Adobe Stock
Personalisation of products
Digital inkjet enables brands to respond to changing consumer behaviour as fashion
cycles shorten and more goods are purchased on-line with scope for personalisation.
Supply chain disruption and increasing de-globalisation has accelerated the trend towards
producing closer to the consumer.
26
27
Our markets
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Beyond prototyping
What began as a tool for rapid prototyping is now driving
production-scale operations. Technologies such as
Binder Jetting and Material Jetting—both rooted in inkjet
principles—are increasingly used for functional parts in
aerospace, automotive, healthcare, and electronics.
→
Binder Jetting deposits a liquid binder onto a powder
bed, layer by layer, to form parts that are later cured
or sintered, making it ideal for metals and ceramics.
Additive manufacturing
Kris Binon, AMIS
Managing Director,
Jacques de Schepper,
Software Engineer, and
Nick De Roeck, CEO,
pose with Dave Vanhove,
CEO of 3iD, a well-known
Belgian 3D printing
service bureau.
Additive manufacturing (AM) is transforming production by enabling agile, just-
in-time workflows, reducing inventory costs, and minimising waste. Among its
many approaches, inkjet-enabled technologies stand out for their precision and
versatility, building on decades of innovation in digital printing. These methods allow
manufacturers to create complex geometries without expensive tooling, opening new
opportunities for sustainability and mass customization.
→
Material Jetting jets droplets of photopolymer or wax
and cures them with UV light, enabling multi-material
and full-color parts with exceptional surface quality—
perfect for medical models or tooling.
The market reflects this shift: binder jetting alone is
projected to grow from USD 0.64 billion in 2025 to USD
1.44 billion by 2030 (CAGR ~17.8%), while the broader
additive manufacturing sector is expected to reach USD
113 billion by 2032, up from USD 25 billion in 2025.
(m) Mordor Intelligence. https://www.
mordorintelligence.com/industry-reports/
binder-jetting-3d-printing-technology-
market
(n) Data Insights Market. https://www.
datainsightsmarket.com/reports/
binder-jetting-3d-printing-technology-
market-20507
(o) Coherent Marketing Insights. https://
www.coherentmarketinsights.com/industry-
reports/additive-manufacturing-market
Powder-Bed Technologies Take Center
Stage
While inkjet-based methods remain vital, Selective Laser
Sintering (SLS) and Multi Jet Fusion (MJF) have emerged
as dominant forces in polymer production:
→
SLS uses a high-powered laser to sinter polymer
powder, producing strong, functional parts without
support structures. Its ability to handle complex
geometries makes it a favorite for aerospace and
automotive applications.
→
MJF, developed by HP, combines powder deposition
with inkjet-applied fusing and detailing agents,
followed by infrared heating. This approach delivers
high throughput and excellent mechanical properties,
making it ideal for short- to mid-volume production
runs.
Both technologies belong to the powder-bed fusion
family, which offers scalability, material efficiency, and
design freedom—key drivers for industrial adoption.
AMIS: Driving Workflow Innovation
Originally focused on jetting technologies, AMIS quickly
recognised its added value for SLS and MJF workflows as
well, where build preparation is critical for cost efficiency
and quality.
In 2025, AMIS achieved a major milestone: AMIS
Pro became production-ready and is now deployed
by multiple users worldwide—just one year after
development began. This rapid commercialization
underscores the team’s agility and Hybrid Software’s
deep expertise in industrial workflows.
AMIS Pro is a next-generation build preparation and
3D-RIP solution tailored for SLS, MJF, and jetting
-based
technologies. It addresses one of the biggest challenges
in additive manufacturing: preparing dense, collision-free
builds quickly and accurately. Customers report up to
80% reductions in preparation time, thanks to advanced
nesting algorithms, an intuitive interface, and streamlined
slicing. By combining automation with operator control,
AMIS Pro helps manufacturers achieve higher packing
density, lower cost per part, and improved part quality—
critical for scaling AM economically.
Customer Success and Partnerships
Belgian service bureau 3iD, a pioneer in polymer AM and
the first adopter of HP’s MJF technology, transformed its
workflow with AMIS Pro. Tasks that once took hours—
nesting, slicing, part positioning—are now completed
in minutes, freeing resources for quality control and
growth. 3iD is just one example among several customers
worldwide reporting similar gains, reinforcing AMIS Pro’s
value across different production environments.
Partnerships amplify this impact: the integration of
AMIS Pro with Phasio, a next-generation MES platform,
connects quoting, build preparation, and production
traceability in a single digital thread. For the first time,
additive manufacturers can combine flexible operator-
driven build prep with automated data traceability,
enabling faster iteration and complete process control.
Recognition and Outlook
Hybrid Software’s achievements in Additive
Manufacturing have not gone unnoticed: in 2025, the
AMIS team earned two international industry accolades,
validating its role as an innovation leader in additive
manufacturing software. AMIS Pro was named one of
the two Runners-Up Winners of the SME AM Start-Up
Technology Award in Detroit (US) and selected as a
Finalist for the prestigious TCT Software Award at the
TCT Awards 2025 in Birmingham (UK). These honors
underscore AMIS’s commitment to delivering solutions
that combine speed, precision, and efficiency for SLS,
MJF, and jetting technologies.
Looking ahead, the market is evolving rapidly, and AMIS
is positioned at its core. By uniting precision software,
intelligent automation, and industry collaboration, AMIS
is redefining workflows for powder-bed and jetting
technologies.
28
29
Our markets
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
3D modelling
Capture 3D is a state-of-the-art technology that uses
a reflex camera to capture the precise dimensions of
objects, ensuring the creation of perfect deformation
grids. The system’s capture process is both fast and
accurate, entirely eliminating the need for interactive
measuring. This reduction in manual measurements
minimises errors and the need for manual adjustments,
drastically improving efficiency in the creation of
grids and 3D models, particularly for metal cans and
shrink sleeves. With its innovative pattern technology,
Capture 3D offers the unique ability to quickly create
Capture 3D technology
removes deadzones
to maintain sharp,
distortion-free
placement of logos,
text, and product
information on every
package surface.
By accurately modelling the appearance of labels, cartons, bottles, and other types
of packaging in software, iC3D software reduces the need for physical printing of
product samples and speeds up time to market. Capture 3D software accurately
captures the exact dimensions required for deformation grids using reflex cameras.
The process reduces errors and the need for manual adjustments, and speeds up the
grid creation and 3D modelling for metal cans and shrink sleeves.
compensation grids and check the repeatability of shrink
tunnels and metal can embossing machines, all while
eliminating deadzones.
This all-in-one solution integrates seamlessly with
PACKZ for 2D artwork distortion and iC3D for
3D modelling, streamlining the entire workflow.
Furthermore, by incorporating anisotropy, Capture 3D
provides precise analysis and optimisation of artwork
deformation, offering a real-time 3D preview for superior
results in both design and production.
Dynamic 3D modeling
enables the creation
of accurate digital
representations
of bottles, boxes,
pouches, and other
packaging types, either
from scratch or from
iC3D’s predefined
template libraries.
30
31
Business segments
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Our
business
segments
Enterprise software
File preparation and workflow automation
for print manufacturing.
Printhead solutions
Electronics and software for industrial
inkjet devices.
Printing software
Graphic processing engines for fast and
high-quality digital output.
32
33
Business segments
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Hybrid Software Brandz
Project Intelligence & Timeline
Management
Artflow provides sophisticated project visibility through
real-time Gantt chart tracking, enabling stakeholders
across design, customer, supplier, and legal to monitor
progress and forecast delivery with precision.
The retroactive planning functionality allows teams
to schedule backward from critical launch dates,
ensuring approval workflows remain aligned with
market requirements. Flexible revision timeframes
accommodate varying review complexities—from
straightforward label updates to comprehensive
regulatory validations—while intelligent alerting provides
early warning of potential delays, allowing proactive
intervention before deadlines are compromised.
Hybrid Brandz exhibited at the 14th Pharma Packaging & Labeling Innovation Forum 2025 in Berlin, Germany, an
event where senior pharmaceutical and healthcare packaging professionals come to network, share best practices,
and discuss industry challenges.
Hybrid Brandz integrates Artflow’s comprehensive SaaS platform, featuring project
management, enterprise connectivity, and visualisation tools from iC3D, with Hybrid
Software’s existing production solutions, creating end-to-end capabilities spanning
brand concept through final print output.
Compliance & Copy Management
The platform’s advanced copy management system
integrates AI-assisted validation rules that streamline
regulatory compliance across multiple markets and
jurisdictions. Enhanced proofreading workflows
incorporate approximate string matching search
capabilities, enabling reviewers to locate specific copy
elements directly within artwork files. Customizable
language displays allow users to isolate relevant
languages during review, reducing cognitive load
in multi-market projects. Sophisticated grouping,
filtering, and sorting functions simplify the management
of complex copy sheets, accelerating compliance
verification while reducing error risk.
Enterprise Integration & Automation
Artflow’s Public API, built on Azure API Management
infrastructure, enables secure, scalable cross-system
automation. The platform synchronizes seamlessly with
enterprise ERP, CRM, and DAM systems, maintaining
data consistency across the technology ecosystem.
Integration with Hybrid’s MyCLOUDFLOW SaaS workflow
automation platform creates end-to-end production
workflows—automating barcode placement, packshot
generation, and step-and-repeat creation directly from
Artflow briefs. This connectivity eliminates manual
handoffs between brand management and production
systems, reducing cycle times while maintaining quality
and compliance standards.
3D Visualisation & Pre-Production
Validation
iC3D extends Artflow’s capabilities with photorealistic
3D visualisation, enabling brand teams to evaluate
packaging concepts in virtual environments before
committing to physical production. Stakeholders can
assess structural design, graphics placement, material
finishes, and on-shelf presence—eliminating costly
mockup cycles while accelerating approvals. The
platform supports SKU variation visualisation, substrate
testing, and virtual planogram validation, proving
particularly valuable during new product launches and
package redesigns where speed-to-market is critical.
The Hybrid Brandz team at
Packaging Première & PCD Milan 2025.
iC3D provides brand owners,
CPGs/FMCGs, retailers
and design agencies the
opportunity to innovate
faster with accurate 3D
protoyping.
34
35
Business segments
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Artflow aquisition
Hybrid Software completed the acquisition of technology
supplier Hybrid Software Brandz NV (formerly TGS NV)
in 2025, a strategic acquisition that marked a significant
expansion of the company’s capabilities by integrating
the full intellectual property and source code of Artflow
into the portfolio.
The new business unit dedicated to brand owners,
CPGs/FMCGs and retailers reflects the strategic
evolution to extend solutions from print production into
the earlier stages of the packaging lifecycle.
The acquisition of Artflow positions Hybrid Software
as a unique end-to-end technology provider spanning
the entire packaging lifecycle from initial brand concept
through final production. By bringing the complete
Artflow development team in-house, Hybrid Software
now serves both upstream stakeholders (project
managers, design agencies, legal and procurement
teams) and downstream production partners (prepress,
printers, and converters) with integrated tools that
simplify audit trails and maintain comprehensive
oversight across organizational boundaries.
This unified approach addresses a persistent industry
Igor Vandromme, VP/GM of Hybrid Brandz and Heath Luetkens, Sales Director of Americas provided numerous
demos for new prospects and existing customers at Labelexpo Europe 2025 in Barcelona.
challenge: the disconnect between brand intent and
production execution. Traditional workflows move
artwork through fragmented systems—losing fidelity,
requiring costly rework, and introducing compliance
risks. Hybrid Software’s combined portfolio eliminates
these gaps by creating a continuous workflow that
spans brand management, artwork development,
regulatory compliance, production optimisation, and
print quality control.
The result is a comprehensive solution that positions
the Company uniquely in the packaging technology
landscape. Rather than serving isolated silos, Hybrid
Software can now, with Hybrid Brandz, support entire
supply chains with seamless integration, reducing
errors, accelerating time-to-market, and ensuring brand
consistency from concept to consumer.
Artflow provides managers
precise color proofing capabilities,
collaborative commenting tools,
and end-to-end project oversight
from design through print production.
The September 2025 version of Artflow focuses on
enhanced timing, compliance, and workflow integration
to help project managers bring packaging artwork to
production faster and with greater accuracy.
1
2
200%
energydrink
w
a
v
e
l
e
m
o
n
squeeze
the
day.
energydrink
INGREDIENTS:
Freshly squeezed lemon juice;
Water, Natural sweeteners
(agave syrup); Salt; Baking soda;
potassium chloride.
w
a
v
e
l
e
m
o
n
Whether you need a
quick pick-me-up in the
morning or an afternoon
energy boost, our lemon
energy drink is the per-
fect choice. So why settle
for sugary and artificial
energy drinks when you
can enjoy the natural
goodness of our deli-
cious and invigorating
lemon drink?
Calories
Sodium
Fat / lipide
Sugars
Protein
56
40 mg
0 g
30 g
1 g
squeeze
the
day.
w
a
v
l
e
m
o
Cyan
Magenta
Yellow
Black
PANTONE 2256C
PANTONE 3415C
Keyline
0.0%
0.0%
0.0%
0.0%
100%
0.0%
0.0%
on 8/12/2023, 11:47:02 AM
JohnDoe
Note 1
Remove Note
Save Note
This is the right color
value, let’s move
forward :)
36
37
Business segments
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Hybrid Software Labels & Packaging
Hybrid Software offers specialised production software designed primarily for
labels and packaging, including native PDF workflow and editing, variable data
embellishment and imposition, enterprise cloud and SaaS solutions, scalable
technology with low cost of ownership, and direct integration with leading Enterprise
Resource Planning (ERP) systems and output devices.
Hybrid Software’s products are based on the company’s
extensive experience in the labels and packaging
industry as well as its commitment to industry standards:
no proprietary or legacy file formats are used by Hybrid
Software’s products, only industry-standard formats like
PDF and TIFF.
Our products are used by thousands of customers
worldwide in all areas of pre-press and printing,
including labels and packaging, folding cartons,
corrugated, and wide format. Hybrid Software’s products
are used both for conventional and digital printing
processes.
Although Hybrid Software supplies OEM customers
who manufacture equipment for package printing, most
of its customers are end-users: companies who print
and convert labels and packaging to support brands
and consumer product companies. Selling directly to
end users requires specially trained employees in all
major markets worldwide to provide sales, support,
training, installation and integration services, and
these employees are critical to the success of Hybrid
Software.
PACKZ Max integrates Harlequin RIP® directly into the
PACKZ PDF editor, enabling precise flexo screening,
seamless 1-bit TIFF output, and high-quality digital
printing.
MyCLOUDFLOW
MyCLOUDFLOW gives customers rapid, hassle-
free access to CLOUDFLOW. Hosted by Hybrid
Software on the fastest cloud computing
platforms, MyCLOUDFLOW brings convenience
and security to the label and packaging industry,
without requiring in-house IT support or heavy
capital investment.
Key products
→
CLOUDFLOW
A modular production workflow suite for file processing,
asset management, soft proofing and workflow
automation. It is a flexible application platform
specifically tailored for packaging graphics with support
for, among other things, PDF colour separation, trapping,
layout, and variable data as well as rasterisation and
screening using the Company’s leading Harlequin Core™
RIP. CLOUDFLOW can run on physical hardware as well
as in public or private cloud computing environments.
→
MyCLOUDFLOW
A multi-tenant version of CLOUDFLOW hosted in a
dedicated Amazon Web Services cluster and maintained
by Hybrid Software’s IT professionals instead of by
their customers’ local IT departments. The secure, high
performance solution is offered at a cost-effective
monthly Software-as-a-Service pricing model.
→
PACKZ
The leading professional PDF editor for packaging and
label production using any printing method: flexography,
offset lithography, gravure, as well as digital printing.
PACKZ operates on native PDF files and uses 64-bit
multi-processing and multithreading facilities for high
performance. PACKZ provides a “Swiss Army Knife”
containing a full set of tools for packaging pre-press,
and its support for native PDF eliminates the need for file
conversions or proprietary file formats.
→
Colorspace
Colorspace delivers accurate colour predictions and
impeccable brand colour matching by intelligently
estimating artwork performance across printing
presses with detailed visual and numerical reporting.
Its adaptable workflows and brand colour verification
ensure precise reproduction and flexibility for digital,
conventional, and Hybrid print conditions.
→
iC3D
A full software suite that generates photorealistic 3D
virtual mock-ups and offers a large library of modelling
templates for digital packaging design and prototyping.
→
Capture 3D
Capture 3D allows distortion of artwork due to
metal forming or heat shrinkage to be accurately
compensated, and results can be shared in a visually
realistic 3D preview. With this innovative technology,
precise and easy grid distortion can take place in
minutes instead of days, speeding up customers’ time to
market drastically while also increasing quality.
PACKZ 11.5 introduces an advanced screen analyzer,
extended CF2 3D variants, and enhanced laneplanner
to deliver precision, efficiency, and collaboration across
production workflows.
38
39
Business segments
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Before graphic designs can be printed or displayed on
a monitor, they must be broken down into vector data
(mathematical drawing algorithms), raster data (image
pixels), and/or screened data (calibrated areas of ink or
pigment representing image data). Hybrid Software Helix
is one of the world’s foremost developers of the graphic
processing engines, known as Raster Image Processors
or RIPs, that are used for these tasks.
Colour management is also required for high-quality
output, a task which is especially difficult for digital
printing where the inks supported by the printer may
not be capable of exactly matching brand-specific spot
colours used for packaging and corporate branding. Our
ColorLogic technology provides a full set of products
for these demanding applications, as well as a Software
Development Kit (SDK) which allows OEMs to produce
their own customised colour management tools.
We develop software components and workflow
solutions for the high-speed digital printing of photo
books, labels, packaging, interior décor, textiles and
ceramics. The company’s combination of software and
first-rate engineering skills enables it to help press
manufacturers to respond to technical challenges
with innovation, meeting their speed and quality
requirements, and getting them to market quickly.
Hybrid Software Helix
For more than 40 years, our OEM Software business, Hybrid Software Helix, formerly
Global Graphics Software, has played a critical role in the print process for tens of
thousands of customers worldwide with its Harlequin RIP® raster image processor.
Helix has continued to enhance Harlequin to meet the needs of the digital printing
market: high-speed processing that runs efficiently on off-the-shelf hardware while
supporting fully variable data.
Customers
Customers include companies such as Hewlett Packard,
Mimaki, Mutoh, Canon, Durst, Roland, and Agfa, as well
as many others who embed our printing software into
their own branded digital front ends (DFEs).
Licensing
Solutions are typically licensed under technology
agreements and reseller agreements. We are noted
for our flexible approach to licensing technology and
pride ourselves on being a trusted commercial and
development partner. This is facilitated by a Technical
Services team who work to accelerate each customer’s
time to market, and also by an experienced product
support team.
In 2025 Helix launched SmartRIP, an innovative raster
image processor (RIP) in the SmartDFE family that
delivers exceptional performance and scalability for a
wide range of industrial applications.
Key products and technologies
→
Harlequin Core
A Raster Image Processor (RIP), specialised software
that converts text and image data from many file
formats including PDF, TIFF™ or JPEG into a format that
a printing device can understand and output. It produces
unmatched quality without sacrificing speed, which
means that printing devices that incorporate Harlequin
can be kept running at full-rated speed, even on the
most complex jobs, without incurring high costs for
computing hardware.
→
SmartDFE
Intelligent digital front end components for digital
printing of labels and packaging within Industry 4.0
automated manufacturing environments.
→
Harlequin Direct
Software that drives print data directly to the printer
electronics instead of buffering them on mass storage
devices, allowing the development of faster, wider and
higher resolution printing devices.
→
ScreenPro Core
Software that converts continuous tone image data
into ready-to-print halftones (dots of varying size and
spacing) in real-time with no compromise on quality.
→
Mako Core
Software that creates, rasterises, converts, analyses and
optimises many different page description languages,
allowing print software developers full control over
colour, fonts, text, images, vector content and metadata
with precision and performance.
→
Apex
Apex is the world’s first fully GPU-native (graphics
processing unit) page description language (PDL
)
renderer. Unlike traditional solutions that only offload
parts of the rendering to the GPU, Apex runs entirely on
the GPU, delivering true high-speed PDL rendering.
→
Colour management software
Colour accurate matching of brand colours for digital
production using four or up to seven process colours.
Products include CoPrA, ColorAnt, ZePrA, as well as a
full SDK, the ColorLogic Core SDK, for OEM licensing.
Hybrid Software Helix was
recognised with a 2025 award for
Best Technical Workflow Solution for
SmartDFE™, intelligent digital front end
components that drive high-speed
label & packaging and industrial inkjet
presses.
40
41
Business segments
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
CLOUDFLOW Colorspace: The Hybrid
Software Colour Solution
Colorspace is Hybrid Software’s dedicated colour
solution, powered by spectral ColorLogic technology
and designed to deliver end-to-end colour management
across modern print production workflows. Built on
industry standards such as ICC and ICC DeviceLink
profiling and PDF/X compliance, Colorspace provides
precise control over colour, from measurement through
final output.
Colorspace unifies core colour technologies into a
scalable solution that integrates seamlessly across
Hybrid Software workflows and OEM environments.
Designed to support the entire print value chain, it
delivers a tailored user experience, enhances operator
productivity, and reduces manual touchpoints through
advanced automation. The result is faster turnaround
times, consistent colour accuracy across substrates and
devices, and unparalleled flexibility for high-volume,
industrial production.
By consolidating ColorLogic’s colour science expertise
into Colorspace, Hybrid Software simplifies deployment,
improves workflow efficiency, and ensures consistent
color fidelity across complex production ecosystems.
Hybrid Software’s Colour Solutions
Colour solutions from Hybrid Software unify advanced colour management under
a single strategy, powered by proven spectral ColorLogic technology. Through its
flagship solutions, CLOUDFLOW Colorspace and PACKZ Colorspace, Hybrid Software
delivers accurate, automated colour workflows for industrial printing, prepress, and
packaging. ColorLogic continues to support its global reseller network through its
three core products: ZePrA - Smart Color Server, CoPrA - Advanced Color Profiler,
and ColorAnt - Color Optimizer, ensuring continuity for existing customers while
benefiting from deeper integration within the Hybrid Software portfolio.
2025 Highlights
→
Awards:
In 2025, CLOUDFLOW Colorspace earned Hybrid
Software three prestigious awards recognising it as the
Best Colour Management Solution: the EDP Award, the
Pinnacle Award from PRINTING United Alliance, and the
2025 C!Expo Tech Innovation Award. Together, these
honours underscore Hybrid Software’s global leadership
in colour automation and print production efficiency.
→
Product Innovation
• Deeper integration of Spectral ColorLogic
technology within CLOUDFLOW with enhanced
automation, expanded multicolour support, and
ink-saving optimisation for high-volume production
environments.
• Enhanced colour-accurate rendering in Proofscope,
supporting greater operator productivity, reduced
turnaround times, and measurable cost savings.
• Increased flexibility for integrating colour management
into complex, automated packaging workflows, including
improved implementation through CLOUDFLOW
Resource Manager to optimise production planning and
execution.
• Integration of the Hybrid Software licensing system
across colour solutions, enabling streamlined activation,
simplified license management, and greater scalability
for enterprise deployments.
Market Impact
→
Expanded Hybrid Software Helix and the ColorLogic
Core SDK, strengthening the Group’s presence in
industrial print markets.
→
Sustained support for ColorLogic’s global reseller
channel while aligning future innovation under the
Hybrid Software Color Solutions strategy.
People & Leadership
Continued investment in colour science expertise and
leadership to drive innovation, product excellence, and
long-term customer value.
Why Color Solutions Matter
Accurate colour reproduction is critical where brand
integrity and print quality are paramount. Powered
by ColorLogic technology, Hybrid Software’s Colour
Solutions embed industry-leading colour science across
prepress, workflow, and production systems. Automated
workflows, reliable profiling, and advanced multicolour
support enable consistent colour, efficient production,
and seamless OEM integration from design through final
output.
Strategic Priorities for 2026
Looking ahead, Hybrid Software’s Colour Solutions will
focus on continued product leadership in predictive
colour automation, deeper integration across Hybrid
Software workflows, and targeted expansion into
emerging industrial print segments such as textiles,
ceramics, and additive manufacturing. These priorities
align with Hybrid Software’s broader strategy to enable
scalable, end-to-end digital print production.
Executive Perspective
Christopher Graf, Vice President Colour, Hybrid Software
reflects, “Colour accuracy is no longer a standalone
function. It is a foundational capability that must be
embedded across the entire production workflow. With
Colorspace, powered by ColorLogic technology, we
are bringing decades of proven colour science into a
unified solution that supports our customers today while
preparing them for the future of industrial print.”
Presenting our colour solutions at
Printing United 2025 in Orlando, FL, USA.
Christopher Graf speaking on the Fujifilm Stage
about the future of Hybrid Software on digital
and conventional printing
at Labelexpo 2025.
42
43
Business segments
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Founded in 1977, Xitron develops mission-critical
software that powers prepress and printing operations
worldwide. The company’s long-standing focus
on
Prepress Independence®
positions Xitron as a
differentiated alternative to proprietary, vendor-locked
systems that dominate the print industry.
Xitron software enables printers and OEMs to control
and modernize production without replacing existing
hardware, reducing capital risk while extending asset
life. With nearly
50,000 installations
globally, the
company benefits from a large, diversified installed base
across offset, flexo, screen, digital, and high-speed
inkjet markets.
A Differentiated Portfolio Built on
Trusted Core Technology
Xitron’s products are built on the industry-proven
Harlequin RIP architecture, widely regarded as the
gold standard for file interpretation accuracy and
performance. This foundation supports a modular
portfolio designed for scalability, integration, and long-
term relevance.
Navigator Platform
The Navigator Harlequin RIP and Navigator Workflow
form the backbone of Xitron’s commercial offering.
As the first PDF 2.0-compliant RIP, Navigator ensures
accurate rendering of modern file features such as
transparency and complex color data—reducing errors,
rework, and downtime.
The workflow layer provides cross-platform, client-
server control, enabling efficient job submission,
preview, tracking, and archiving across Mac and PC
environments. Modular licensing allows customers to
Xitron
Enabling open, scalable print production for nearly 50 years, Xitron is a long-
established software provider delivering vendor-independent prepress and print
workflow solutions. Xitron combines long-term stability with targeted growth
opportunities, serving as a critical software provider within the evolving global print
ecosystem.
align functionality with operational needs, supporting
predictable cost structures.
K2 Workflow: Addressing a Market
Replacement Cycle
K2 represents the first new commercial offset workflow
introduced in nearly two decades, targeting a significant
installed base of aging systems originally deployed by
major equipment and consumables suppliers.
By offering a modern, vendor-agnostic replacement that
maintains compatibility with existing platesetters, K2
addresses a clear market need driven by:
→
End-of-life legacy platforms
→
Rising subscription costs
→
Customer resistance to forced hardware upgrades
K2 enables customers to transition incrementally,
preserving capital investments while adopting current
workflows. It’s an approach that lowers barriers to
adoption and supports steady replacement-driven
revenue.
Dealers from seven European countries gathered
in Ghent, Belgium, for K2 workflow certification and
training. Response to Xitron’s next-generation platform
has been overwhelmingly positive.
Strategic Highlights
→
Nearly 50 years of operating history and industry
credibility
→
Large, diversified global installed base
→
Vendor-independent positioning aligned with
customer cost pressures
→
Proven core technology with low technical risk
→
Exposure to both replacement cycles and digital
growth markets
→
Modular, software-driven model supporting
predictable margins
Sabarish Ramanunni and
Vijay Gaikwad of Fujifilm
join Xitron’s Karen Crews
and Doug Mawdsley to
celebrate the sale of a
Navigator Flexo Suite in
Kenya.
Xitron’s Blue Box USB interface delivers direct,
reliable raster output from Harlequin-based
RIPs to CtP and film imagers from leading
manufacturers worldwide.
Exposure to Multiple Print Growth
Segments
Xitron serves customers across a wide range of print
markets, providing diversification and resilience:
→
Offset Printing
– Core commercial production
workflows
→
Flexography
– Specialised tools for modern flexo CtP
production
→
Screen Printing
– Film and direct-to-screen
applications
→
High-Speed Inkjet
– Digital production and industrial
printing
Since 2011, Xitron has partnered with leading inkjet
printhead and drive electronics manufacturers, resulting
in thousands of successful inkjet installations. This
positions the company well for participation in the
continued shift toward digital and Hybrid print.
OEM-Focused DFE Strategy
Xitron’s
Navigator DFE extends its reach beyond
traditional prepress into OEM-embedded solutions. Built
on the same Harlequin Core, the DFE supports leading
printhead technologies, including Memjet and HP, and
features a fully brandable, browser-based interface.
Open APIs enable deep integration with OEM software,
paper handling systems, and industrial controllers,
allowing partners to accelerate time-to-market while
reducing development risk. This OEM strategy provides
a scalable path to recurring and embedded revenue
opportunities.
44
45
Business segments
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Conics
In September 2025, Conics joined Hybrid Software as a new business unit,
specialising in solving complex challenges that printers and packaging producers
struggle to address with industry-standard solutions.
What sets Conics apart is its supplier-independent and
product-agnostic approach. This enables Conics to
provide objective and transparent advice, free from the
influence of software suppliers.
With over 30 years of cumulative experience in the
printing and packaging industry, the Conics team is well-
versed in creating automation modules for day-to-day
graphical workflow.
Conics has consistently pushed the boundaries
of automation by delivering bespoke solutions for
its clients, while continuing to explore emerging
technologies and their application within the industry.
Project Management and Consultancy
Conics possesses a strong team of consulting experts in
various software applications for printers and packaging
producers. They play the role of both advisor and
eventually project manager, helping teams define, build
and implement the correct solution for the customer’s
challenges.
Conics always starts from processes, not from a
software perspective. The team recognises that no two
businesses are alike and that effective guidance requires
a customised, hands-on approach. They analyse
business needs, workflow, and objectives. Based on
that, they provide tailored advice to identify the most
suitable software solutions.
Conics’ founders Dries Maerten and Frederic Vandelanotte with the rest of the Conics team.
Custom development
From creative and prepress applications to production
management, there are always unexpected gaps in the
workflow where automation could be introduced aiming
for further optimisation and reducing overheads and
opportunity costs.
Off-the-shelf software does not always address the
specialised demands of the graphical production
industry. When standard solutions fall short, Conics can
step in with tailor-made software development. Their
skilled developers have deep insight into the graphic
industry and design solutions that align precisely with
businesses’ workflows and operational requirements.
They focus on creating software that delivers immediate
value while remaining flexible enough to support their
future expansion. Whether the objective is to streamline
processes, connect multiple systems, or build an entirely
new digital tool, the Conics team has the knowledge and
experience to bring vision to life.
The toolbox
The Conics toolbox is something our technician offers
to the clients who wishes to start introducing a certain
degree of automation into their printing and packaging
business. Our three main tools match respectively
with three key layers of your business, customer
communication management, creative collaboration, and
printing floor management.
→
JAIMES
Recognising how repetition kills business growth,
JAIMES AI was introduced as a tool to turn unstructured
customer communications such as Requests for Offer or
Orders directly into structured data, ready-to-use in an
ERP/MIS system or Order portal. This tool cuts down on
long hours of manual input of information.
→
Scotty
Scotty is a flexible communication tool and workflow
management tool developed by Conics, allowing
any company to start building their project flow and
automating tasks from day one without extensive
development. Scotty works with automation modules
that could be added or removed, organised or
reorganised. The modules still remain fully customisable
where necessary to adapt to each client.
→
Anilox Follow-up System (AFS)
The Anilox Follow-up System (AFS) is the platform
offered to printers as a tool to comprehensively monitor
the performance of all anilox rolls in a flexo printing fleet.
With AFS, printers can capture the changes in status of
every roll and ensure color consistency. Anilox suppliers,
and cleaning service providers can be given accessed
to AFS by printers themselves. This enables a more
effective collaboration during cleaning and performance
tracking.
JAIMES, CONICS`s AI-Assistant built
for the graphic industry, analyses
unstructured information from
emails, PDFs, Excels, and
exports the relevant data
into ERP systems.
46
47
Business segments
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Under the Meteor Inkjet brand, we develop and supply
specialised electronics and software that drive industrial
inkjet printheads, enabling precise fluid deposition for
the production or finishing of manufactured products.
Meteor’s products translate the bits and bytes of
print data into firing instructions that inkjet printheads
understand. Our technology forms an essential link
between the digital ‘model’ of a production job (held as a
file on a PC) and the precisely timed ejection of drops of
fluid from thousands of nozzles in an array of printheads.
Long-standing relationships with all major printhead
manufacturers including FUJIFILM Dimatix, Epson,
Konica Minolta, Kyocera, Quantica, Ricoh, Riso
(previously Toshiba TEC), Seiko Instruments, Xaar and
Xerox mean we can continually develop electronics and
software solutions for new printhead models. These
close partnerships enable us and our OEM customers to
accelerate their route to production.
Meteor Inkjet
Meteor’s new HDC-XM solution for the Xerox M Series enables OEMs
to fully exploit the capabilities of these printheads which are already
widely used for additive manufacturing. Coupled with Meteor software for
system control, print job creation and image quality enhancement, OEMs
can significantly reduce the time and effort associated with the design and delivery of
industrial inkjet systems.
Our solutions are modular, scalable, and production-
ready and are supported by a world-class technical
team, situated in Cambridge, UK amongst one of the
largest industrial inkjet clusters in the world, as well as
sales & support facilities in China, the United States,
Japan and Korea.
Customers
Meteor’s global customer base serves a wide variety of
markets including ceramic tiles, direct-to-shape, textiles,
packaging, 3D/additive manufacturing, functional,
security & electronics, labelling, signs & displays, decor,
commercial print, book printing and glass printing.
Under the Meteor Inkjet brand, we develop and supply specialised electronics and
software that drive industrial inkjet printheads, enabling precise fluid deposition for
the production or finishing of manufactured products.
Meteor Inkjet launches Advanced
DropWatcher optics
Meteor’s advanced DropWatcher Optics enable more
precise visualisation and measurement of ink droplets,
which enables users to analyse and improve print quality
with greater confidence and control.
Building on the proven synchronised strobe and
long-exposure imaging approach of earlier Meteor
DropWatchers, the new system introduces enhanced
optical and timing technologies that capture sharper,
more detailed images of individual droplets. This allows
accurate measurement of drop volume and a deeper
understanding of dynamic behaviours such as ligament
breakup, meniscus oscillation, and mist generation. This
advancement provides a new level of measurement
precision and analytical capability.
Meteor Inkjet’s products and services
Meteor understands the commercial and technical
realities of industrial inkjet and delivers products
and services from print system concept through to
production.
→
Electronics
Production-ready, scalable drive electronics for all major
industrial inkjet printheads.
→
Software
Comprehensive software for single-pass or scanning
including development kits, workflow solutions and
advance print quality tools.
→
Tools
Meteor offers an extensive range of tools for ink
characterisation, print reliability analysis, printhead
evaluation and print process development.
Our solutions reduce development risk and time to
market for manufacturers building new industrial inkjet
printers. Among our customers in this segment are
Mark Andy, a leading label equipment manufacturer in
the US; Hymmen, a leading printed laminate equipment
manufacturer in Germany; and China’s leading ceramic
tile decoration equipment manufacturer.
48
49
COMPANY
STRATEGIC
REPORT
2025 was another successful year for Hybrid Software,
with healthy growth in most business segments. Our
commitment to innovation is as strong as ever, with
more than 100 engineers innovating in partnership with
our customers and more than 300 employees dedicated
to their success. In 2026 we will continue to execute
our strategy of delivering profitable growth for all
stakeholders.
Chairman's statement
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Chairman’s statement
“I’m pleased to report that 2025
was a record year for Hybrid
Software in both revenue and
operating profit.”
I’m pleased to report that 2025 was a record year for
Hybrid Software in both revenue and operating profit.
Our expectations for 2025 were initially conservative,
but sales were especially strong in the second half of
2025 and we exceeded our expectations by a significant
margin.
Our 2025 results came mainly from organic growth, not
from acquisitions or from any major industry trade show.
Labelexpo Europe was a success, as we’ve come to
expect every two years, but it was not a game changer
for Hybrid Software. No credit is owed to any change in
strategy, or to an improvement in business conditions
for our customers. High interest rates and geopolitical
uncertainty have become the norm, not the exception.
But we have learned to operate under those conditions
with lean management, fast execution, and continued
investment in developing and selling innovative
products.
So what is the explanation for our 2025 results? Like
Occam’s razor, the simplest explanation is most likely
to be the correct one: our strategy to provide industry-
leading software to printers and converters of labels
and packaging, as well as innovative software and
electronics to other manufacturers who build digital
printing devices for packaging, has been correct all
along. As the packaging market matures, the industry
comes to us as the only company with a full-stack
solution for digital package printing.
This does not mean that digital package printing is the
only game in town. Analog technologies like flexography,
offset printing, and gravure still dominate long-run
packaging, and our software fully supports these printing
technologies. But brands and consumer packaged goods
companies (CPGs) drive investment in package printing,
and sustainability considerations favour shorter print
runs produced closer to their production lines, a perfect
fit for digital printing.
I have addressed the topic of artificial intelligence in
previous letters with a respect for the technology but
a heavy measure of scepticism about the value of AI in
labels and packaging, where 99.9% accuracy is simply
not good enough. Despite the promise of AI and many empty press releases from industry vendors, it’s difficult to
find products where AI has replaced powerful software and human intelligence in the production of professional
packaging.
But in 2025 we completed two acquisitions that bring tangible benefits to our customers and increase our expertise
in AI. The first was Conics, a Flemish professional services company with deep AI expertise and a blue-chip customer
base. Secondly, we acquired the technology company behind our Brandz artwork management software, Artflow.
After a successful partnership and the acceptance of Artflow by many significant brands and CPGs, acquiring the
software and the people who develop it was the next logical step; we’ve always believed in owning our technology
rather than partnering or licensing it from other companies.
We acquired Conics and Artflow for their technology and their DNA, not for their revenue. Our acquisition strategy
has always revolved around acquiring technology which complements our core expertise in prepress software for
labels and packaging, including artwork management, 3D rendering and visualisation, colour management, and
artificial intelligence. But despite our sizeable cash position, our acquisition strategy is slowing down. We passed up
several opportunities in 2025 because they were not a good fit with our structure, and we already offer a complete
technology portfolio for labels and packaging so we do not need to acquire other companies unless they add
significantly to our revenue and profits.
Last year I closed my letter with the promise of high expectations for the year ahead, and the performance of Hybrid
Software exceeded my expectations. For 2026, I foresee further acceleration in the growth and success of Hybrid
Software. We will continue to execute our strategic plans, and the market will continue to come to us. The biggest
change coming in 2026 is our shift from a technology company with a sales force, to a sales-driven company with
industry-leading technology. With a mature product portfolio and a strong operations team, we are expanding heavily
in developing markets and global accounts and expect significant growth in these segments.
As always, I would like to thank the stakeholders of Hybrid Software Group: our shareholders, our employees,
Board of Directors, and management team, and most of all, our customers for their continued support as we deliver
continued growth and success in 2026 and beyond.
Guido Van der Schueren
Executive Chairman
Guido Van der Schueren,
Executive Chairman
52
53
CEO's review
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
CEO’s review
“2025 was a successful year for
Hybrid Software, with consolidated
revenue growth of 6% and adjusted
operating profit up 17% compared
to last year.”
2025 was a successful year for Hybrid Software, with
consolidated revenue growth of 6% and adjusted
operating profit up 17% compared to last year. We
completed two acquisitions and finished the year with
€14.5 million cash on hand, 52% above our cash position
at the end of 2024.
We worked hard to simplify the structure of Hybrid
Software Group, rebranding our OEM software business
as Hybrid Software Helix Ltd. and unifying the group’s
core software businesses – Labels & Packaging, Brandz,
ColorLogic, Helix, and Conics – under the Hybrid
Software banner and a new group website launched
at our Fusion customer event in Amsterdam. The
operations of Hybrid Software and Helix (formerly Global
Graphics Software) have also been merged in both
the US and UK to streamline operations and improve
efficiency.
All business units developed and launched innovative
new products in 2025 which contributed to our revenue
growth. It’s impossible to cover all of these in this short
letter, but I’d like to highlight a few of the most important
product launches here.
Hybrid Software’s Labels & Packaging business unit
launched CLOUDFLOW Datacenter, a high-performance
Linux-based version of the software which powers our
MyCLOUDFLOW SaaS platform, for enterprise customers
to use in their own private cloud environments. Hybrid’s
Color business unit leveraged ColorLogic’s successful
products to created Colorspace, an automated color
management platform for labels and packaging that is
unique in the industry. Our Helix business unit launched
Mako Apex, a graphical software toolkit which uses
Graphic Processing Units (GPUs) to provide much higher
performance than standard CPU-based rendering. In
addition to Mako Apex, shipments of Helix’s SmartDFE
solution continue to increase, with more than 20 OEM
customers now shipping digital printing presses powered
by SmartDFE.
Hybrid’s Brandz business unit completed the acquisition
of its technology supplier and closed several major deals
for its Artflow artwork management software and iC3D
Mike Rottenborn
Chief Executive Officer
photorealistic 3D rendering. Its award-winning collaboration with Diageo for point-of-sale custom printing of high
value alcoholic beverage bottles has been extended to other brands which will be featured at the FIFA World Cup this
summer. In 2025 we also acquired Conics, a Flemish software developer with deep AI expertise and a groundbreaking
product – Jaimes
– which augments human customer service reps with custom Large Language Models to interpret
customer emails and facilitate packaging production. We will continue to lead the industry in AI software products
with measurable customer value in 2026 and beyond.
Not to be outdone, Meteor Inkjet completed the development of their patented Nozzle Health Technology which can
detect failing or clogged printheads using electrical feedback. Despite the slowdown in demand for ceramic tiles in
China, Meteor grew their business in other segments and regions in 2025 and expects this to continue. Finally, our
Xitron subsidiary successfully launched K2, a full-featured workflow for commercial printing designed to replace
legacy workflows from printing plate manufacturers who charge heavy SaaS fees for their workflows but have not
invested in innovation and automation as Xitron has.
Our customers are continually challenged to provide printed packaging faster and at a lower cost. Digital printing
is part of the solution, and this segment is well-served by our OEM businesses, Helix and Meteor Inkjet. But most
packaging is still printed using analogue technologies: flexography, offset printing, gravure, and screen printing.
Hybrid Software’s workflow automation and editing software supports all of these printing technologies and we
expect continuing high demand for these products.
In 2026 we will continue to grow revenue organically, turbocharged by two significant factors. First, we see a growing
demand for workflow automation in developing regions of the world and have increased our sales and support
staffing in these regions. Second, we are seeing a real uptick in synergies across our business units. Some people
compare synergy to unicorns, often rumoured but rarely seen, but we’ve always understood that synergies across
business units are the key to unlocking sustained growth. Printers of labels and packaging buy digital presses and
also need software to drive them. Manufacturers of digital presses need electronics to drive inkjet print heads and
also need Digital Front End (DFE) software to power the presses. Brands need artwork management software that
links to professional prepress tools. And color management is de rigeur in packaging production but has never before
been automated as part of an automated workflow. We expect these and many other synergies to continue to drive
our growth in 2026 and beyond.
Our commitment to innovation is stronger than ever, with more than 100 engineers innovating in partnership with our
customers and more than 300 employees of Hybrid Software dedicated to their success. We will continue to execute
our strategy of delivering profitable growth for all stakeholders.
Mike Rottenborn,
Chief Executive Officer
54
55
CFO's review
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Revenue for the year was
€
54.37 million
(2024: €51.50 million)
Gross profit for the year was
€
46.72 million
(2024: €43.42 million)
Adjusted operating profit from
continuing operations was
€
8.46 million
(2024: €7.20 million)
EBITDA for the year was
€
12.65 million
(2024: €11.99 million)
Cash at 31st December 2025 was
€
14.46 million
(2024: €9.51 million)
CFO’s review
The following financial information relates
to continuing operations.
Revenue
Revenue for the year was €54.37 million compared with
€51.50 million in 2024, an increase of €2.87 million (5.6%).
Licence royalties accounted for 43.7% (2024: 45.9%) of
revenue, driver electronics accounted for 19.3% (2024:
19.8%), maintenance and support accounted for 23.2%
(2024: 21.8%), services accounted for 11.4% (2024: 10.1%),
hardware and consumables accounted for 1.7% (2024:
2.1%) and other items accounted for 0.7% (2024: 0.3%).
Customer concentration and the dependence on a limited
number of customers decreased this year. In 2025, the ten
largest customers represented 25.3% (2024: 32.3%) of the
Group’s revenue, the five largest customers represented
17.9% (2024: 22.0%) of the Group’s revenue and the
single largest customer represented 4.2% (2024: 6.5%) of
the Group’s revenue. There was no customer (2024: no
customer) during the year that represented 10% or more of
total revenue.
The Group’s sales are made in several different currencies,
thus fluctuations in exchange rates can affect the reported
revenue. During the year 29.6% (2024: 27.1%) were in
euros, 41.8% (2024: 37.3%) were in US dollars, 24.5%
(2024: 23.0%) were in pounds sterling, 1.2% (2024: 10.9%)
were in Japanese yen and 2.9% (2024: 1.7%) were in other
currencies.
→
Printing Software segment
Revenue for the Printing Software Segment was €14.32
million for the year (2024: €16.67 million). During 2025
a new contract was agreed with one existing customer
which resulted in €1.69 million of revenue being
recognised. During 2024 new contracts were agreed with
two existing customers which resulted in €4.3 million of
revenue being recognised.
→
Printhead Solutions segment
Revenue for the Printhead Solutions segment was €12.17
million for the year (2024: €11.59 million).
This segment is quite dependent on a limited number of
customers for a significant portion of sales, although the
breath of customers increased in 2025. In 2025, the top
10 customers generated 60.3% of revenue (2024: 65.1%),
with the top customer generating 19.0% of revenue
(2024: 17.5%).
→
Enterprise Software segment
Revenue for the Enterprise Software segment was
€27.88 million for the year (2024: €23.24 million). For
the segment year-over-year license royalty income
increased by €2.5 million, maintenance and after-sale
support services income €1.3 million and services income
by €0.7 million.
Additionally, revenue grew in all regions served, despite
unfavourable foreign exchange evolutions of the United
States dollar, pound sterling, Australian dollar and
Chinese Yuan against the euro.
Pre-tax result
The consolidated pre-tax result for continuing operations
was a profit of €4.36 million compared with a loss of
€3.36 million in 2024. The increase in the profit of €7.72
million is due to:
→
an increase in revenue of €2.87 million;
→
a decrease in cost of sales of €0.43million;
→
an increase in selling, general and administrative
expenses of €1.31 million
→
a decrease in the impairment of goodwill of €6.28
million;
→
an increase in research and development expenses of
€0.50 million;
→
a decrease in other operating expenses of €0.07
million;
→
an increase in other income of €0.52 million;
→
a decrease in net finance expenses of €0.46 million;
and
→
an increase in foreign exchange losses of €1.10 million.
Gross profit for the period increased to 86% of revenue
(2024: 84%), primarily due to the lower mix of printing
electronics related sales during the year, which have a
lower level of gross margin than software because of
their manufacturing costs.
Included in selling, general and administrative expenses
is amortisation of €1.00 million (2024: €0.90 million)
related to intangible assets recognised as a result of
acquisitions.
In 2025 the Group recorded a goodwill impairment
charge of €nil million (2024: €6.28 million) in aggregate
(see Note 16).
Research and development expenses includes the
capitalisation and amortisation of internally generated
intangible assets and the amortisation of certain
intangible assets recognised as a result of acquisitions.
During the period there was a net capitalisation of
development expenditure of €0.98 million (2024: €0.53
million) and amortisation of acquired intangible assets of
€4.30 million (2024: €4.57 million).
The net capitalisation of development expenditure was
comprised of €3.30 million (2024: €3.45 million) of
capitalised expenditure less €2.32 million (2024: €2.92
million) of amortisation.
Total operating expenses decreased by €5.07 million,
or 10.90% compared to the same period in the prior
year. When you exclude the goodwill impairment of
€6.28 million in the prior year, total operating expenses
increased by €1.21 million, or 3.01% compared to the
same period in the prior year.
Foreign exchange gains and losses are primarily due to
the revaluation of currency balances held at the balance
sheet date and the change in exchange rates during the
year.
Joachim Van Hemelen,
Chief Financial Officer
56
57
CFO's review
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Alternative performance measures
Alternative performance measures (see Note 2) and adjusted financial information have not been audited by the
Group’s auditors.
→
Revenue
To eliminate the impact of currency movements when comparing the current year to the comparative, the current
year is restated at the comparative’s actual exchange rates.
At constant exchange rates (“CER”)
(2025 restated at 2024 exchange rates):
In thousands of euros
Reported
2025
CER
2025
Reported
2024
Revenue from continuing operations
54,372
55,099
51,501
→
Adjusted operating result and net profit
The Board believes that evaluating the Group’s ongoing results may not be as useful if it is limited to reviewing only
IFRS financial measures, particularly because management uses adjusted financial information to evaluate its ongoing
operations, for internal planning and forecasting purposes and for the measurement of performance related bonuses.
The Group does not suggest that investors should consider these adjusted financial results in isolation from, or as a
substitute for, financial information prepared in accordance with IFRS. The Group presents adjusted financial results
when reporting its financial results to provide investors with additional performance measures to evaluate the Group’s
results in a manner that focuses on what the Group believes to be its underlying business operations. The Group’s
management believes that the inclusion of adjusted financial results provides consistency and comparability with past
reports.
Cashflow
Cash flow was positive for the year with a net cash inflow of €4.95 million (2024: net cash inflow of €2.43 million).
Cash flow from operating activities was positive at €15.04 million (2024: €8.82 million).
Loan repayments of €2.89 million were made to Congra Software SARL, consisting of €2.75 million in principal
repayments and €0.14 million of interest (see Note 26 and 31).
The Group continues to generate sufficient cash to fund its day to day operational expenditure and capital
expenditure on property, plant and equipment and has overdraft facilities available if required.
IFRS reported operating profit or loss from continuing operations is adjusted as follows:
In thousands of euros
2025
2024
IFRS reported operating profit / (loss) from continuing operations
5,273
(3,090)
Add severance costs
-
54
Deduct capitalised development expense (see note 15)
(3,297)
(3,451)
Add amortisation of capitalised development
2,847
2,922
Add amortisation of acquired intangibles
4,301
4,569
Add impairment of goodwill (see note 16)
-
6,280
Add other operating expenses (see note 8)
5
70
Deduct other income (see note 9)
(674)
(150)
Total adjustments to reported operating profit from continuing operations
3,182
10,294
Adjusted operating profit from continuing operations
8,455
7,204
IFRS reported net profit or loss from continuing operations is adjusted as follows:
In thousands of euros
2025
2024
IFRS reported net profit / (loss) from continuing operations
4,237
(2,828)
Adjustments to operating result above
3,182
10,294
Tax effect of above-mentioned adjustments
(410)
(514)
Total adjustments to reported net profit from continuing operations
2,772
9,780
Adjusted net profit from continuing operations
7,009
6,952
Adjusted net basic earnings per share for continuing operations
€0.21
€0.21
Adjusted net diluted earnings per share for continuing operations
€0.21
€0.21
→
EBITDA
EBITDA is also reported as an alternative measure of profit and is calculated by adding back interest, tax, depreciation
and amortisation to net profit from continuing operations.
EBITDA from continuing operations was €12.65 million (2024: €11.99 million) and is reconciled to IFRS reported net
profit from continuing operations as follows:
In thousands of euros
2025
2024
IFRS reported net profit / (loss) from continuing operations
4,237
(2,828)
Net finance (income) / expenses
(197)
261
Tax expense / (credit)
118
(653)
Depreciation
1,333
1,427
Amortisation
7,158
7,502
Impairment of goodwill (see note 16)
-
6,280
EBITDA from continuing operations
12,649
11,989
As a % of revenue from continuing operations
23%
23%
58
59
Principal risks and uncertainties
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Global economic conditions
2025 was characterised by above target inflation in the Western world and restrictive but over the year gradually
loosening monetary policy by most of the central banks. Higher interest rates increase financing costs for companies,
which put more strain on our customers’ capital expenditure budgets.
In 2025 Western economies overall have proven to be rather resilient and continue to grow, albeit at varying rates.
China, an important market for multiple of the Group’s business segments, continues to face economic headwinds
with the construction sector as a diminishing driver of the economy. Since the second half of 2024; the Chinese
government in concert with the Chinese central bank launched a series of stimulative programs, all of which are in the
process of transpiring in the real economy.
War in the Middle East
The Group does not have any operations in the Middle East. It does has significant customers in the region,
specifically in Israel.
The military action undertaken by Israel in Gaza has not impacted business levels in the region in any material way,
nor did the military action undertaken by Israel & the United States of America against Iran in June 2025 (the ‘Twelve-
Day War’).
Early March 2026, heightened military actions involving Iran and ongoing conflicts in the Middle East have increased
macroeconomic and geopolitical uncertainty. These developments have contributed to volatility in global energy
markets, disrupted trade routes, and elevated risk premia across financial markets. If prolonged or escalated, such
instability could adversely affect commodity prices, supply chain continuity, regulatory environments, and investor
confidence.
The Group is a software and hardware supplier and depends on the demand from customers for its products and
services to generate revenue. Any resulting reduction in demand from those customers will adversely affect the
Group’s revenue and profitability.
Given the fluidity of the geopolitical environment, the ultimate impact on global markets, supply chains, and our
business remains uncertain. At present, the Board does not believe these events have materially affected the Group’s
financial results or position. The Board continues to monitor developments closely. In the event the situation were to
worsen to potentially cause a negative impact on the macroeconomic environment in the medium to long-term, the
Group would be able to restructure its cost base to mitigate any ongoing drop in demand.
Principal risks and
uncertainties
The Group does not have a dedicated risk management or internal audit function,
consequently the risk management review is carried out by the executive
management team on a regular basis. The risks and uncertainties described below are
not necessarily set out in order of priority or potential impact on the Group’s financial
statements.
Russia’s invasion of Ukraine
The Group does not have any operations in Ukraine and does not generate any significant revenue from either Russia
or Ukraine, thus is not directly affected by the current situation.
In the years since the invasion, the Board remains concerned about the economic and political uncertainty across the
world.
If the situation were to worsen and spread to other countries, there could be a negative impact on the demand for the
Group’s products and services, which could impact the Group’s revenue and profitability.
Refer to note 2 to the consolidated financial statements for further details about going concern.
Risks related to the Group’s financial situation
→
The Group’s business, results of operations and financial condition could be materially affected by global
economic and political conditions
The Group sells its products and services throughout the world and economic conditions that affect the global
economy or regional economies may significantly impact the demand for printing technology and therefore for the
Group’s products and services.
The current uncertainty around the global economy, international trade and the pace of growth in the countries and
industries in which the Group’s existing and prospective customers and suppliers operate may negatively affect the
level of demand for the Group’s products and services. A reduced demand for the Group’s products and services will
reduce the Group’s revenue and profitability.
In 2025 the Group generated positive cash flow and increased its net cash position. Management expects the Group
to generate positive cash flow and further increase its net cash position in 2026. The Group continues to grow in
the countries where it is active, hence through its global presence the Group increases its geographic diversification
which makes it less vulnerable to individual national or regional adverse events.
→
A significant portion of the Group’s revenue comes from a small number of large customers
The Group is dependent on a relatively small number of large customers for a significant portion of its revenue. For
the year ended 31 December 2025, the Group’s ten largest customers represented 25.3% (2024: 32.3%) of the
Group’s revenue, with the single largest customer representing 4.2% (2024: 6.5%) of the Group’s revenue. If one or
more of these customers choose to source the products or services supplied by the Group from an alternative vendor
the effect on revenue, and therefore profitability, could be material.
In 2025 multiple actions have been taken to source new, significant customers, which should further increase
customer diversification.
60
61
Principal risks and uncertainties
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Risks related to the Group’s business activities and industry
→
The Group is dependent on the graphic arts and digital printing industries
The Group derives all of its revenues from products and services provided to the graphic arts and digital printing
industries. Accordingly, the Group’s future success significantly depends upon the continued demand for its products
within such industries.
The Board believes that an important factor to consider is the substantial change in the graphic arts and digital
printing industries, as evidenced by sustained growth in digital printing and low growth in conventional printing. The
shift in inkjet printing technology opens up opportunities to the Group when manufacturers develop new products.
If this environment of change were to slow, the Group could experience reduced demand for its products which could
have a material adverse effect on its operational results.
In 2025 the Company continued to invest in research and development at above market levels, in order to enhance
or at least protect its technological advantages. This provides best in class products and solutions which allow our
customers to harvest maximum productivity gains from purchasing the Company’s products and services. Customers
and prospects are always looking to improve efficiency, and any market downturn increases pressure to do so.
→
Source dependency might lead to higher prices to be paid to suppliers or disruption in the production of
certain of the Groups’ products and therefore impacts the Group’s business activities and profitability
Meteor Inkjet Limited’s products include some key electronic components which are subject to shortage of supply
from time to time. There is a risk that some of the Group’s products could not be manufactured if there is a disruption
to that supply, therefore customer orders could be delayed or cancelled, which could result in a reduction in revenue
and profits in the Group. Revenue for these products is reported in the Group’s Printhead Solutions segment and
for the year ended 31 December 2025, revenue from external customers for that segment was €12.17 million (2024:
€11.59 million), which is equal to 22.39% (2024: 22.51%
) of the Group’s total revenue.
In 2025 no shortages in critical components have been experienced. Nevertheless management continues to examine
how sourcing can be optimised in order to minimise the effects of any supply chain disruption.
→
Certain contractual arrangements with customers contain extended payment terms which lead to an
increased credit risk on such customers
The Group sells its products and services to a range of established customers and generally takes payments in
advance for the sale of physical goods in the Printhead Solutions segment, thus minimising the credit risk. In the
Printing Software and Enterprise Software segments, certain licensing arrangements allow, however for payments
to be made over an extended period of time, up to five years in some instances. These extended payment terms
increase the credit risk and the chance that the Group may not be paid. During the year ended 31 December 2025,
€4.04 million (2024: €3.47 million) of revenue was recognised in respect of a licensing arrangement that includes
extended payment terms of up to 5 years. To date, for licensing arrangements where revenue has been recognised in
previous years, all contractually due payments have been received in accordance with the contractual terms.
The current economic uncertainty has increased the likelihood of the materialisation of such risk, as the liquidity
position of certain customers could be affected by the consequences of a downward economy and the payment
behaviour of certain customers could change.
In 2025 management continued to monitor the financial health of the customers with which it engages in long term
licensing arrangements and takes measures to mitigate any risks.
→
Security breaches and other disruptions could compromise the Group’s confidential and sensitive information
and expose the Company to liability, which would cause the Company’s business and reputation to suffer
The Group and certain third parties that it relies on for its operations collect and store confidential and sensitive
information, and their operations are highly dependent on information technology systems, including internet-based
systems, which may be vulnerable to breakdown, wrongful intrusions, data breaches and malicious attack. This
information includes, among other things, intellectual property (“IP”) and proprietary information, source codes and
commercially sensitive data, both of the Group and of its customers.
Although the Group has appropriate measures in place (including appropriate insurance coverage) to protect its
business from any potential interruptions, any attack or breach could compromise the Group’s networks or those of
related third parties and stored information could be accessed, publicly disclosed, lost, or stolen. For example, if the
Group would as a result of such an attack be unable to access its source code needed to develop new products, it
might lose customers, which will have an impact on its operational results. In addition, if IP were to be stolen from
the Group, such stolen IP could be used by competitors to improve their products or produce products which could
reduce the Group’s competitive advantage and therefore impact the Group’s operational results in the long term.
In 2025 management continued to monitor and enhance its security systems.
→
The Group serves, in addition to its traditional client base of original equipment manufacturers, an increasing
amount of end customers. Such customer mix needs to be carefully managed to avoid an adverse impact on
its business and results of operations
27.9% of the Group’s revenue for the year ending 31 December 2025 (2024: 33.9%) was generated by customers that
are original equipment manufacturers (“OEMs”), such as industrial inkjet press manufacturers, who embed the Group’s
software in their own products that they sell to end-users.
The Group serves an increasing amount of end-customer across the vertical structure of the packaging supply chain,
including pre-press service agencies, label & packaging convertors and brand owners and Consumer Packaged
Goods companies. Those companies purchase, in varying degrees, the systems and equipment from OEMs including
those who are customers of the Group in addition to the Group’s software products. Consequently, the Group
increasingly serves certain clients of its own clients.
While the Board believes that this customer mix and its evolution will not have an adverse effect, the customer mix
needs to be carefully managed in the future in order to avoid an impact on either the OEM sales or end-user sales and
therefore on the profitability of the Group.
In 2025 management continued to monitor the situation closely.
62
63
Principal risks and uncertainties
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Legal and regulatory risk
→
Failure to adequately protect the Group’s intellectual property could substantially harm its business and
operating results
The Group’s success is heavily dependent upon its proprietary technology. To protect its proprietary rights, the Group
relies on a combination of patent, copyright, trade secret and trademark laws, as well as the early implementation
and enforcement of non-disclosure and other contractual restrictions. As part of its confidentiality procedures, the
Group enters into written non-disclosure agreements with its employees, prospective customers, OEMs and strategic
partners and takes steps to limit access to, and distribution of, its software, intellectual property and other proprietary
information.
→
The expansion of customer segments to which the Group sells its products and services made the overall
environment in which the Group operates more competitive, which could have a material adverse effect on
the Group’s business and results of operations
Because of the highly technical nature of the products produced by the Group, there is a high barrier for competitors
to enter the market. As a result, the limited number of competitors which do exist tend to be larger companies with
sufficient resources to compete in these demanding market segments.
The acquisitions of Hybrid Software, ColorLogic, IC3D, Artflow and Conics in recent years and merging its products
and services mix with the products and services of the Group, has increased the number of competitors the Group is
facing, as each of these entities have a distinct set of customer but also competitors.
Although Hybrid Software, ColorLogic, IC3D, Artflow and Conics all have been a long-standing partners of the
Group and such relationships were already well known in the industry, it cannot be excluded that such increased
competition could result in a business disruption from both customers and suppliers of the Group which could have a
material adverse effect on the Group’s results of operations.
In 2025 management continued to monitor the situation closely and adjusts any business plans when and where it
deems appropriate.
→
Recruitment and retention of key personnel
An important part of the Group’s future success depends on the continued service and availability of the Group’s
senior management, including its Chief Executive Officer and other members of the executive team. These individuals
have acquired specialised knowledge and skills with respect to the Group. The loss of any of these individuals could
harm the Group’s business.
The Group’s business is also dependent on its ability to attract, retain, and motivate talented, highly skilled personnel,
notably in software development, electronic engineering and technical support areas. Such personnel are in high
demand and competition for their talents is intense. Should the Group be unable to continue to successfully attract
and retain key personnel, its business may be harmed. The Group offers a competitive package of salary and benefits
to directors and employees and regularly benchmarks them against similar businesses to ensure that they remain
attractive to current and prospective employees.
In 2025 management continued to recruit and retain essential staff by applying a multi-faceted approach to reducing
staffing and skill risks, including: (I) competitive wage and benefits packages, tailored by location, (II) development
opportunities, (III) continuous improvement.
Despite these efforts, if such agreements are not made on a timely basis, complied with or enforced, the Group may
be unable to effectively protect its proprietary rights and the enforcement of its proprietary rights may be cost-
prohibitive. Unauthorised parties may attempt to copy or otherwise obtain, distribute, or use the Group’s products or
technology. Monitoring unauthorised use of the Group’s software products is difficult. Management cannot be certain
that steps taken to prevent unauthorised use of the Group’s proprietary technology, particularly in countries where
the laws may not protect proprietary rights as fully as in the UK, the EU or the United States, will be effective.
The Group’s source code is also protected as a trade secret. However, from time to time, the Group licenses its
source code to partners, which subjects it to the risk of unauthorised use or misappropriation despite the contractual
terms restricting disclosure, distribution, copying and use. In addition, it may be possible for unauthorised parties to
obtain, distribute, copy or use the Group’s proprietary information or to reverse engineer its trade secrets.
The Group holds patents, and has patent applications pending, in the United States and in the EU. There may be
no assurance that patents held by the Group will not be challenged, that patents will be issued from the pending
applications or that any claims allowed from existing or pending patents will be of sufficient scope or strength to
provide adequate protection for the Group’s intellectual property rights.
The failure to adequately protect the Group’s proprietary technology may adversely affect the Group’s business,
financial position, result of operations and prospects.
In 2025 management continued to monitor and enhance its systems and procedures to protect its intellectual
property rights.
→
Enforcing, acquiring and defending intellectual property rights is costly and could have a material adverse
effect on the Group’s financial position and result of operations
In connection with the enforcement of its own intellectual property rights, the acquisition of third-party intellectual
property rights or disputes relating to the validity or alleged infringement of third-party rights, including patent rights,
the Group may be in the future subject to claims, negotiations or protracted litigation. Intellectual property disputes
and litigation are typically very costly and can be disruptive to the Group’s business operations by diverting the
attention and energies of management and key technical personnel. Although the Group has successfully defended
or resolved past litigation and disputes, it may not prevail in any future litigation and disputes.
Third-party intellectual property rights could subject the Group to significant expenditures, require the Group to
enter into royalty and licensing agreements on unfavourable terms, prevent the Group from licensing certain of its
products, cause disruption to the markets where the Group operates or require the Group to satisfy indemnification
commitments with its customers including contractual provisions under various license arrangements, any one of
which could harm the Group’s business and have a material adverse effect on the Group’s financial position and
results of operations.
In 2025 management continued to monitor the situation closely.
→
As a result of Brexit, both Belgian and UK takeover regulations apply in their entirety to the Company, which
may render a potential takeover complex and costlier
As the Company is a public company limited by shares with its registered office in the United Kingdom, the provisions
of the UK City Code on Takeovers and Mergers (the “UK City Code”) apply to the Company. Simultaneously, as the
Company’s shares are listed on the regulated market of Euronext Brussels, a voluntary takeover bid for the Shares of
the Company would also be subject to the Belgian takeover legislation. Accordingly, any voluntary takeover bid for
the Company would be governed by both the UK and Belgian takeover legislation.
64
65
Principal risks and uncertainties
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Contrary to what was the case before Brexit (where certain aspects were governed by UK law and certain other
aspects by Belgian law based on the provisions of the European Directive 2004/25/EC of 21 April 2004 (the EU
Takeover Directive)), UK and Belgian takeover legislations apply in their entirety to any potential voluntary takeover
bid with respect to the Shares and it could not be excluded that these regulations might be conflicting. This may
have an impact on the information the potential bidder must disclose, the envisaged timelines and the contents of
the prospectus. Moreover, both the Financial Services Market Authority (the “FSMA”) and the Panel on Takeovers and
Mergers (the “Takeover Panel”) would be competent authorities with respect to such takeover bid.
The process to make a successful bid could therefore be more complex and costlier. This could potentially discourage
potential bidders from launching a takeover attempt and thus deprive shareholders of the opportunity to sell their
Shares at a premium (which is typically offered in the framework of a takeover bid).
In 2025 no acquisitions subject to Belgian and UK takeover regulations have been made.
Internal control risk
→
The Company cannot guarantee that its disaster recovery and business continuity plans will adequately
address any potential issue in the future
The Company cannot guarantee that the Group’s disaster recovery and business continuity plans will be adequate
in the future for its critical business processes nor that they will adequately address every potential event. Although
the Group has insured major risks, the Company can give no assurance that the Group’s present insurance coverage
is sufficient to meet any claims to which it may be subject, that it will in the future be able to obtain or maintain
insurance on acceptable terms or at appropriate levels or that any insurance maintained will provide adequate
protection against potential liabilities. Any losses that the Group incurs that are not adequately covered by insurance
may decrease the Group’s future operating income. In addition, defending the Group against such claims may strain
management resources, affect the Group’s reputation and require the Group to expend significant sums on legal
costs.
The Group’s business is currently operated from various locations across the UK, Europe, North America, China
and Japan. Some business critical IT infrastructure is concentrated at one site in the UK with a continuous backup
of those systems and data to a separate UK site. Business continuity plans are intended to ensure that business-
critical processes and data are protected from disruption and will continue even after a disastrous event (such as
a major fire or weather, political or war event). Without these plans, or if these plans prove to be inadequate, there
is no guarantee that the Company or any of its operating subsidiaries would be able to compete effectively or even
to continue in business after a disastrous event or major disruption to one or more of its operating subsidiaries.
Accordingly, if critical business processes fail or are materially disrupted as a result of a disastrous event or otherwise
and cannot recover quickly, this could have a material adverse effect on the Group’s business, financial condition and
results of operations.
In 2025 the Group continued to enhance and implement extensive information security programmes, to
reasonably ensure confidentiality, integrity, availability and security of its systems. The entire security approach
is underpinned by policies and procedures, and for selected platforms and entities, it is also formalised in order to
obtain certifications such as ISO 27001. Other risk reduction initiatives include an information security training and
awareness program and a broad penetration testing schedule, with immediate correction in case of findings.
66
67
Monitoring Key Performance Indicators
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Section 172(1)
The board monitors progress on the overall Group
strategy and the individual strategic elements by
reference to financial KPIs; specifically revenue, gross
margin, operating expenses, adjusted operating profit,
EBITDA* and cash. These KPIs have been addressed
in more detail in the Business review and future
developments section above.
The Directors have considered the requirements of
section 172(1) of the Companies Act 2006 and it is a
core duty of the Directors above. The key considerations
are set out below.
It is a core duty of the Directors to promote the success
of the company. To do so the Directors consider the
main issues and stakeholders when making significant
decisions. The Company has never paid a dividend, thus
shareholders are invested for capital growth and due
to the nature of the business, employees are critical to
the success of the Group’s products. The CEO and CFO
communicate regularly with analysts and shareholders
are encouraged to participate in an annual meeting.
Engagement with employees is two-way to ensure
that employees are kept well-informed about the
business and valuable feedback is received to ensure
continuation of being a trusted employer. Initiatives
to ensure the well-being of employees and their
dependents are regularly reviewed and enhanced.
Considering the capital growth aims of shareholders,
the Directors are focused on growing the revenue and
product portfolio to ensure that the Group continues to
grow, whilst remaining profitable, with the continuing
move to digital printing and manufacturing in the
marketplace. This is done by development of new
products, for example SmartDFE and Mako Apex in
recent years and by strategic acquisitions such as
Meteor, Xitron, Hybrid Software, ColorLogic and iC3D.
Products are developed based on an identified market
demand. In the case of Mako Apex, this was a need for
faster rendering of graphics for digital printing and in the
case of SmartDFE, the evolutionof smart factories and
Industry 4.0.
Acquisitions are evaluated not only for their financial
merits, but on the basis that they fit within the strategy
and culture of the Group and that synergies and further
opportunities can be developed through integration.
Relationships with customers and key suppliers are
fostered through a collaborative approach through the
The board monitors progress on the overall Group strategy and the individual
strategic elements by reference to financial KPIs; specifically revenue, gross margin,
operating expenses, adjusted operating profit, EBITDA* and cash. These KPIs have
been addressed in more detail in the Business review and future developments
section above.
use of technical services, evaluation software and products and customer-specific
product development where appropriate. Commercial contracts are written to further
strengthen those relationships.
It is the Group’s policy to manage and operate worldwide business activities in
conformity with applicable laws and regulations as well as with the highest ethical
standards. Both the Group’s Board of Directors and executive management are
determined to comply fully with the applicable law and regulations, and to maintain the
Group’s reputation for integrity and fairness in business dealings with third parties. A
strict compliance with the provisions of the Group’s Code of Ethics is mandatory for
every member of the Group’s Board, executive officers, every senior executive and
every employee at all locations.
The Directors consider the impact of the Company’s operations on the environment
and consider how it can reduce any negative impact it might have. The Company’s
technology and products enable its customers to produce more efficient and less
resource consuming products and services, thus saving energy and raw materials
and the Company participates in a program to offset the carbon footprint of all its
employees, in both their personal and work lives. For more information see page 70.
*For the EBITDA calculation see page 59
2024 Copyright © Adobe Stock
68
69
Environmental matters
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Environmental matters
The Board of Directors is very aware of its responsibilities towards the environment
and to employees and believes that driving sustainability goals through the business
is not only the right thing to do for future generations but also makes for good
business practice. Indeed, in many of the Group’s key growth markets, such as
packaging and textiles, environmental factors are influencing how those markets
develop.
The Group’s business is to develop and market software
solutions for printing and electronics for inkjet printing
in particular. As a result, management believes the
Group has no activities that are likely to have significant,
detrimental effects on the environment. In fact, an
application of some of the Group’s products is to limit
ink use when printing and inkjet printing is inherently
more sustainable than analogue printing: generating less
waste in all aspects of production. The Group has shown
leadership in the industry, advertising its commitment
to Net Zero, and reiterating the strategic importance of
sustainability issues at industry conferences.
For several years the Group has implemented policies
aimed at minimising the Group’s environmental footprint,
including recycling waste from paper, ink, toner
cartridges, other computer consumables and computer
hardware.
The Group is implementing policies to reduce Scope
1 and Scope 2 footprint such as sourcing renewable
energy and prioritising low-carbon forms of travel and is
talking with supply chains to measure and push down on
Scope 3 carbon footprint.
Starting in 2022, the Group has partnered with Octopus
Electric Vehicles to allow UK based employees to lease
electric vehicles via a salary sacrifice scheme. There are
currently eleven employees that are utilising the scheme
and have taken delivery of their electric vehicle.
As part of our commitment to community engagement, Meteor pruned apple trees in a local orchard, harvested the
apples and then bottled the juice. Taking the project one step further, they designed and printed custom labels for
the bottles using a range of solutions from Hybrid Software Group.
“As a Board we are very aware of our responsibilities towards the environment and
to our employees. Driving sustainability goals through the business is not only the
right thing to do for future generations but it makes good business sense too. For
instance, in many of our key growth markets, such as packaging and textiles,
environmental factors are influencing how those markets develop. Improving our
environmental credentials shows our commitment to the expansion of these markets
as they continue to transition towards digital production.”
Guido Van der Schueren
Executive Chairman
Other employee events to encourage sustainability included joining the Canopy
network (within the Cambridge University Institute for Sustainable Leadership), our
annual green commute-to-work campaign, and a “sustainability taskforce” of employee
volunteers who meet regularly to identify and pursue sustainability ideas within the
office or related to company activities. A highlight was employee-led volunteering to
support the local community orchard with pruning and harvesting, from which over 100
bottles of apple juice were obtained to share with company visitors. We also support
the Cambridgeshire Wildlife Trust, a charity that is committed to creating a sustainable
future for wildlife.
partnership
Since 2021, through a partnership with Ecologi,
the Group now offsets the carbon footprint of
all Group employees, whether from personal
activities at home or from (Scope 1 and Scope 2)
activities at work. Ecologi facilitates the funding
of carbon offset projects and tree planting around
the world, to generate high quality carbon offsets.
Since this partnership with Ecologi started, the
Group has achieved an offset of over 8,000
tonnes of CO2e and funded over 83,000 trees,
which have contributed to 34 environmental
projects across the globe.
83,000 trees planted
8,137 tCo2e avoided
70
71
Social and community
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Social and community
Staff are encouraged and given time off to participate in charitable and community
activities. The Group contributes to employee-led fundraising activities for local and
national charities. Activities this year included a Bake Off event (raising money for
Jimmy’s – a charity working for the homeless in Cambridge) and Save the Children’s
Christmas Jumper Day.
Donations
Donations to charities amounted to €2,631 (2024: €340) during the year.
The Group operates a peer-to-peer recognition system which allows UK employees
to nominate awards to colleagues for their outstanding performance. Some operating
divisions also issue employee of the quarter awards.
Human rights
The Group respects all human rights and in conducting its business the Group regards
those rights relating to non-discrimination, fair treatment and respect for privacy to
be the most relevant and to have the greatest potential impact on its key stakeholder
groups of customers, employees and suppliers.
2024 Copyright © Adobe Stock
Employee matters
The Group places considerable value on the involvement of its employees and has
continued to keep them informed on matters affecting them as employees and on
the various factors affecting the performance of the Group. This is achieved through
formal quarterly company meetings presented by the CEO to all employees.
Employment policies
The Group gives full and fair consideration to
applications for employment from all persons where
the candidate’s aptitudes and abilities meet the
requirements of the job. In the event of any staff
becoming disabled while employed by the Group, every
effort is made to ensure that their employment by the
Group continues and that appropriate adjustments are
made to their work environment. The Group provides
long-term health insurance for all staff if they are unable
to work due to illness or disability whilst in employment.
As a responsible employer, the Group provides modern
and professional working environments in all locations.
Compliant with all relevant human resources and health
and safety regulations, the Group strives to offer
competitive employment packages with opportunities for
Company level
Number of females
Number of males
Total
Board
Management
Employees
1
1
47
4
28
235
5
29
282
Total Group
49
267
316
personal and professional development. Staff surveys
are carried out with follow-up action plans alongside an
internal communications programme to provide regular
updates on performance.
Diversity
The Group does not discriminate on the grounds of
age, race, sex, sexual orientation or disability. It has a
clear and transparent recruitment process with annual
appraisals to provide feedback on staff performance and
to create individual objectives.
The table below shows the number of persons of each
sex who were directors, management and employees of
the Group as at 31 December 2025.
By order of the Board,
Mike Rottenborn
Chief Executive Officer
72
73
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Employee matters
74
It was great to have our software solution expert
Heysler Hey (Pico) invited to speak at one of the year’s
most forward-thinking packaging industry events in Latin
America, Pack to the Future 2025. The conversation on
the future of packaging production was insightful, and
the energy in the room made it clear: Brazilian packaging
professionals are ready to lead, not follow, the global
transformation.
At Labelexpo Barcelona, Christopher
Graf, Managing Director and VP Color
at Hybrid Software shared the new
developments in color, namely the
democratisation of color management
so entire production teams can operate
systems that once required specialised
expertise.
Lesley Whitfield, Senior Software Engineer, celebrated 25
years with Global Graphics Software, now Hybrid Software
Helix. Lesley joined the Harlequin RIP team in 2000 as a
software developer, contributing her expertise to our
colour management technology and playing a key role in
several major development projects, including variable
data processing. Over the years, she’s also made valuable
contributions to SmartDFE, Support, and QA teams.
In October 2025, Meteor Inkjet celebrated the milestone
30-year work anniversary of Managing Director, Clive
Ayling. In 2005, Clive co-founded Meteor (now Meteor
Inkjet Ltd) and took on the role of managing director in
2016 following Meteor’s acquisition by Global Graphics
PLC, now Hybrid Software Group PLC. Clive has been
preeminent in instigating and chairing Meteor’s drive
to develop sustainably. He has presented several
industry talks on the topic, chairs Meteor’s sustainability
taskforce and has been appointed ESG Leader for
Hybrid Software Group.
Bert Van der Perre, VP/GM Labels & Packaging and Sumate Jankasamepong,
Director of Sales in Southeast Asia attended Dscoop’s Thailand Summit
2025, where industry leaders gathered to be emboldened to reimagine,
reinvent and lead the label and packaging industry forward.
75
GOVERNANCE
The Board of Directors of Hybrid Software Group believes in
strong corporate governance and transparency, with open,
clear, and frequent communications to our shareholders.
Board od directors
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Guido Van der Schueren has
been Chairman of the Board since
2014 and has close to 50 years
of experience in the graphic arts
industry. In 1992 he co-founded
Artwork Systems and from 1996
to 2007 served as Managing
Director and Chairman of the Board
of Artwork Systems Company.
He served as Vice Chairman of
the EskoArtwork Company from
June 2007 until April 2011. He
runs Powergraph, an investment
company mainly active in graphic
arts software and technology. He
is also the Chairman of Congra
Software, the holding company
which owns a majority stake in
Hybrid Software Group PLC.
Mike Rottenborn took up the
position of Chief Executive Officer
in January 2020. He was formerly
the President and CEO of Hybrid
Software Inc., which he founded
in 2007. He has spent more than
35 years working in the graphic
arts industry and began his career
as an electrical engineer with
DuPont Printing & Publishing. After
DuPont, he joined PCC Artwork
Systems to focus on prepress
workflow software for packaging
and commercial printing customers.
He received his Bachelor of Science
degree in Electrical Engineering
from Virginia Tech and his Master
of Science degree in Computer
Science from Villanova University.
Board of directors
The Board of Directors
guides the Company
to create growth and
shareholder value. With
decades of experience
in building successful
companies, the Board
supports the talented
individuals in the senior
management teams to
execute and deliver on
strategy.
Guido Van der Schueren
Executive Chairman
Mike Rottenborn
Chief Executive Officer
Joachim Van Hemelen was
appointed Chief Financial Officer,
Company Director and a member
of the Company’s executive
team in September 2022. He has
management responsibility over the
firm’s global finance, treasury and
corporate development functions.
Prior to being appointed he was
CFO of Hybrid Software which he
joined in 2015.
Before this he worked as a
corporate finance advisor in an
Antwerp-based family office,
Portolani, and as a merger and
acquisitions advisor in a Flanders-
based mid-market M&A boutique.
He started his professional career
in 2010 as a financial auditor at
BDO. Joachim earned his Master of
Science in Business Administration
at the Lessius Hogeschool Antwerp.
Clare Findlay was appointed an
independent non-executive director
of the Company in March 2019. She
was previously a non-executive
director of the Company from June
2011 until 2014 and has more than
20 years’ experience at senior level
positions in the computer software
industry, including as managing
director of the UK operations of
Concentrix Corporation, the global
business process outsourcing
division of SYNNEX. In 2013 Clare
co-founded Purple Demand, a
Demand Creation Agency.
Luc De Vos was appointed an
independent non-executive
director in February 2021. An
engineer by training, Luc is credited
with championing the early
implementations of the internet in
Europe and was the founding father
of the first sizeable pan-European
Internet Service Provider. A notable
business angel during the nineties’
new media and internet boom, he
was a key player in KPNQwest,
Stepstone, and Starlab and more
recently, CarsOnTheWeb (now
ADESA Europe).
He has also been a non-executive
chairman to the first mediatech
venture capital fund (Arkafund)
in Belgium as well as a director
to the global leasing and fleet
management company Sofico,
and advisor to unified threat
management security provider
AXS GUARD. In all, he has worked
with more than 60 companies
with a strong focus on growth and
corporate governance.
Joachim Van Hemelen
Chief Financial Officer
Clare Findlay
Non-executive Director
Luc De Vos
Non-executive Director
78
79
Director’s report
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Directors’ report
The Directors present their annual report and the audited financial statements for the
year ended 31 December 2025.
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. As
analogue printing markets are converting to digital production, Hybrid Software
Group 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.
Directors
The board are responsible for the appointment of Directors and the amendment of articles of association (“Articles”)
and meet regularly throughout the year.
Subject to the provisions of the Company’s Articles, any person who is willing to act as a director, and is permitted by
law to do so, may be appointed to be a director by ordinary resolution, or by a decision of the Directors, either to fill a
vacancy or as an addition to the existing board provided that the appointment does not result in the total numbers of
Directors exceeding any maximum number fixed in accordance with the Company’s Articles.
At every annual general meeting all the Directors shall retire from office. If the Company, at the meeting at which a
director retires under, does not fill the vacancy, the retiring director shall, if willing to act, be deemed to have been
reappointed unless at the meeting it is resolved not to fill the vacancy, or unless a resolution for the reappointment of
the director is put to the meeting and lost.
The Directors who held office during the year under review were:
Guido Van der Schueren
Executive Chairman
Michael Rottenborn
Chief Executive Officer
Joachim Van Hemelen
Chief Financial Officer
Clare Findlay
Non-executive Director
Luc De Vos
Non-executive Director
The Company maintains director and officers’ liability insurance.
Shareholdings
Ordinary shares are entitled to one vote each in any circumstance. Each share is entitled pari passu to dividend
payments or any distribution. The shares are not redeemable and there are no transfer restrictions on the shares.
Subject to the Company’s Articles, but without prejudice to the rights attached to any existing ordinary share, the
Company may issue shares with such rights or restrictions as may be determined by ordinary resolution.
The breakdown of the Company’s issued share capital as at 31 December 2025 was:
Number of ordinary
shares
% of issued share
capital
Congra Software S.à r.l. ***
27,476,064
83.48%
Company owned shares
191,981
0.59%
Free float
5,241,692
15.93%
Total
32,909,737
100.00%
*** Congra Software S.à r.l. is controlled by Guido Van der Schueren, the Company’s Chairman. Michael Rottenborn
(Chief Executive Officer) and Joachim Van Hemelen (Chief Financial Officer) are also shareholders of Congra
Software S.à r.l.
Investment in own shares
The Company holds some of its own shares in treasury to meet its obligations arising from the Group’s employee
share programmes (see notes 23 and 30 to the consolidated financial statements).
On 10 December 2024 the Company announced the start of its share repurchase programme, for a total amount of
€1 million. The total number of shares held in treasury at 31 December 2025 was 191,981 (2024: 63,822). Further
information can be found in note 23 to the consolidated financial statements.
During the year, the Company disposed of 9,000 treasury shares (2024: 9,106), transferred to employees to satisfy
the Company’s obligations under share schemes.
Corporate governance
Details of the Group’s corporate governance can be found in the Corporate governance report on page 86.
Political contributions
The Group made no political contributions during the year (2024: €nil).
Dividends
The Directors do not recommend the payment of a dividend (2024: €nil).
Research and development
The Group spent €13.82 million (2024: €13.32 million) on research and development during the year. Under IAS 38
Intangible Assets, €3.30 million (2024: €3.45 million) of research and development was capitalised and €2.32 million
(2024: €2.92 million) of capitalised research and development was amortised. There was no impairment of capitalised
research and development during the year (2024: €nil). The net effect of capitalisation, amortisation and impairment
on profit in the year was a decrease in expense of €0.98 million (2024: €0.53 million decrease in expense).
80
81
Director’s report
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Post balance sheet events
Details of post balance sheet events are detailed in note 37 to the consolidated financial statements.
Financial risk management
Details of the Group’s financial risk management are disclosed in the Group strategic report and in note 31 to the
financial statements.
Streamlined Energy and Carbon Reporting (SECR)
The following Streamlined Energy and Carbon Report (SECR) provides environmental impact information in
accordance with the Companies Act 2006 (Strategic Report and Director’s Report) Regulations 2013 and the
Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Reporting) Regulations 2018.
Global energy use and greenhouse gas (“GHG”) emissions from activities for which the Group is responsible for:
2025
2024
Energy used (kwh)
Electricity (scope 2)
336,555
362,588
Gas (scope 1)
273,784
273,501
Fuel (scope 1)
836,992
815,299
Total energy used (kwh)
1,447,331
1,451,388
United Kingdom
202,077
219,946
Rest of the world
1,245,254
1,231,442
Total energy used (kwh)
1,447,331
1,451,388
GHG emissions (CO2e tonnes)
Electricity (scope 2)
75.4
83.6
Gas (scope 1)
50.1
50.0
Fuel (scope 1)
204.3
194.9
Total GHG emissions (CO2e tonnes)
(a)
329.8
328.5
United Kingdom
35.8
45.5
Rest of the world
294.0
283.0
Total GHG emissions (CO2e tonnes)
329.8
328.5
Intensity ratio
Average number of employees
285
271
GHG emissions per employee (CO2e kilogram)
1,157
1,217
Effect of the carbon offset program with Ecologi (CO2e
tonnes)
(b)
(1,484.3)
(1,453.4)
Net GHG offset (CO2e tonnes)
(a+b)
(1,154.4)
(1,124.9)
Electricity and gas are used to power and heat the Group’s offices and transport fuel is used by company cars
provided to some employees. Where possible, primary data has been sourced (meter readings and supplier invoices),
but where actual energy figures are not available a reasonable approximation has been used to estimate energy
usage.
There has been a continuation of the existing strategy to reduce the physical number of computers to consolidate
into more efficient servers where possible. A senior manager has been appointed to head up and implement group-
wide sustainability initiatives, including to reduce energy consumption across the Groups offices.
The Company continues to partner with Ecologi, the platform that facilitates the funding of carbon offset projects and
tree planting around the world, to offset its carbon footprint.
Since October 2021, the Group has been working towards compensating for the environmental footprint of every
employee in their work and personal life. At work, the Group is implementing policies to reduce Scope 1 and Scope 2
footprint such as sourcing renewable energy and low-carbon travel, and is talking with supply chains to measure and
push down on Scope 3 carbon footprint.
Through the partnership with Ecologi, the Group offsets the carbon footprint of all Group employees, whether at
home or at work.
Statement of Directors’ responsibilities in respect of the annual report and the
financial statements
The Directors are responsible for preparing the Annual report and the group and parent Company financial statements
in accordance with applicable law and regulations.
Company law requires the Directors to prepare Group and parent Company financial statements for each financial
year. Under that law they are required to prepare the Group financial statements in accordance with UK-adopted
international accounting standards and applicable law and have elected to prepare the parent Company financial
statements in accordance with UK accounting standards and applicable law, including FRS 101 Reduced Disclosure
Framework. In addition, the Group financial statements are required to be prepared in accordance with International
Financial Reporting Standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union
(“IFRSs as adopted by the EU”).
Under company law the Directors must not approve the financial statements unless they are satisfied that they give
a true and fair view of the state of affairs of the Group and parent Company and of the Group’s profit or loss for that
period. In preparing each of the Group and parent Company financial statements, the Directors are required to:
→
select suitable accounting policies and then apply them consistently;
→
make judgements and estimates that are reasonable, relevant, reliable and prudent;
→
for the Group financial statements, state whether they have been prepared in accordance with UK-adopted
international accounting standards and IFRSs as adopted by the EU;
→
for the parent Company financial statements, state whether applicable UK accounting standards have been
followed, subject to any material departures disclosed and explained in the parent Company financial statements;
→
assess the Group and parent Company’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern; and
→
use the going concern basis of accounting unless they either intend to liquidate the Group or the parent Company
or to cease operations or have no realistic alternative but to do so.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the
parent Company’s transactions and disclose with reasonable accuracy at any time the financial position of the parent
Company and enable them to ensure that its financial statements comply with the Companies Act 2006. They are
82
83
Directors’ report
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
responsible for such internal control as they determine is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking
such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and
other irregularities.
Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report and a
Directors’ Report that complies with that law and those regulations.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included
on the Company’s website. Legislation in the UK governing the preparation and dissemination of financial statements
may differ from legislation in other jurisdictions.
The Directors are responsible for the preparation of the consolidated financial statements in electronic format
in accordance with the ESEF requirements set out in the regulatory technical standards as laid down in the EU
Delegated Regulation nr. 2019/815 of 17 December 2018.
Responsibility statements under the disclosure and transparency rules
We confirm that to the best of their knowledge:
→
the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and
fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included
in the consolidation taken as a whole; and
→
the strategic report includes a fair review of the development and performance of the business and the position of
the issuer and the undertakings included in the consolidation taken as a whole, together with a description of the
principal risks and uncertainties that they face.
Disclosure of information to auditor
The Directors confirm that:
→
so far as each director is aware there is no relevant audit information of which the Company’s Auditor is unaware;
and
→
the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit
information and to establish that the auditor is aware of that information.
Auditor
PKF Littlejohn LLP were re-appointed during the year as auditor of the company.
By order of the Board,
Michael Rottenborn
, Director
2030 Cambourne Business Park
Cambourne
Cambridge
CB23 6DW
12 March 2026
84
85
Corporate governance report
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Corporate
governance report
Directors and Board
The Board comprises two executive directors, an
executive chairman and two non-executive directors.
The Board considers that the non-executive directors
are independent. See page 78 for further details about
the Board of Directors.
The roles of chairman and chief executive officer are
separate appointments and it is Board policy that this
will continue. The non-executive directors bring their
independent judgement to bear on issues of strategy,
performance, appointments, resources and standards of
conduct.
Board committees
Audit and remuneration committees provide additional
review and scrutiny of the Group’s activities.
Relations with shareholders
The Company’s executive directors communicate
regularly with analysts and private investors are
encouraged to participate in the Annual General
Meeting.
Internal financial control
The Group has established policies covering the key
areas of internal financial control and the appropriate
procedures, controls, authority levels and reporting
requirements which must be applied throughout the
Group.
The key procedures that have been established in
respect of internal financial control are:
→
internal control: the directors review the effectiveness
of the Group’s system of internal controls on a regular
basis;
→
financial reporting: there is in place a comprehensive
system of financial reporting based on the annual
budget approved by the board. The results for the
Group are reported monthly along with an analysis of
key variances to budget, and year-end forecasts are
updated on a regular basis; and
→
investment appraisal: applications for significant
expenditure of either a revenue or capital nature
are made in a format which places emphasis on the
commercial and strategic justification as well as the
financial returns.
The Financial Conduct Authority’s Listing Rules (“the Listing Rules”) require that listed
companies (but not companies traded on an overseas EU market) incorporated in
the UK should state in their report and accounts whether they comply with the UK
Corporate Governance Code (“the Code”) and identify and give reasons for any area
of non-compliance. The Company is listed on Euronext Brussels and therefore is not
required to comply with the Listing Rules or the Code, however, several voluntary
disclosures have been given. The Board supports the principles and aims of the Code
and intends to ensure that the Group observes the provisions of the Code as it grows,
as far as is practical. However, the Board considers that at this stage in the Group’s
development the expense of full compliance with the Code is not appropriate.
The content of this report is unaudited.
All significant projects require specific Board approval.
No system can provide absolute assurance against material misstatement or loss but
the Group’s systems are designed to provide reasonable assurance as to the reliability
of financial information and ensuring proper control over income and expenditure,
assets and liabilities.
Going concern
The Directors have a reasonable expectation that the Group has adequate resources
to continue in operational existence for the foreseeable future. The Directors have
prepared cash flow forecasts for a period of at least 12 months from the date of
approval of these financial statements and have no reason to believe that a material
uncertainty exists that may cast significant doubt about the Group’s ability to continue
as a going concern, notably because of a cash position of €14.46 million as at 31
December 2025 (2024: €9.51 million). Those forecasts take into account reasonably
possible downsides, including the potential impact for increased costs of inflation.
Thus, they continue to adopt the going concern basis of accounting in preparing the
annual financial statements.
Refer to note 2 to the consolidated financial statements for further details.
2024 Copyright © Adobe Stock
86
87
Audit committee report
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Additionally, the Committee will:
→
review the effectiveness of the Company’s internal
financial control systems,
→
advise the Board on the Company’s risk strategy, risk
policies and current and emerging risk exposures,
including the oversight of the overall risk management
framework and systems,
→
assess the adequacy and security of the Company’s
arrangements for its employees and contractors
to raise concerns, in confidence, about possible
wrongdoing in financial reporting or other matters and
to ensure proportionate and independent investigation
of such matters,
→
and make recommendations to the Board as it deems
appropriate on any area within its remit where action
or improvement is required.
The Committee operates with clarity, simplicity, fairness,
predictability and is aligned to the culture of the
organisation.
Luc De Vos
Chair of the Audit Committee
The members of the Committee are Luc De Vos (Chair of
the Committee) and Clare Findlay.
The Committee oversees the relationship with the
Company’s external auditor, monitors its effectiveness
and independence and makes recommendations
to the Board in respect of the external auditor’s
remuneration, appointment and removal. The Committee
also reviews the findings from the external auditor,
including discussion of significant accounting and
audit judgements, levels of errors identified and overall
effectiveness of the audit process.
The Committee meets as required, typically at least 3
times per year; at the beginning of the financial year
to agree on the audit and risk operational plan for that
year, at mid-year to evaluate any matters and issues that
might have arisen and at the close of the financial year to
review the findings of the auditor and to ensure that the
group’s audit and risk objectives have been met.
The Committee also considers significant financial
reporting issues, accounting policies and key areas
of judgement or estimation. This review also includes
consideration of the clarity and completeness of
disclosures on the information presented in the financial
statements.
Audit committee report
The Audit Committee (the “Committee”) is appointed
by the Board and consists wholly of the non-executive
directors. The Board has delegated to the Committee
responsibility for overseeing financial reporting, the
review and assessment of the effectiveness of the
internal control and risk management systems and
maintaining an appropriate relationship with the external
auditor.
Luc De Vos
Chair of the Committee
Directors’ remuneration
report
The members of the Committee are the independent, non-executive directors, Clare
Findlay (Chair of the Committee) and Luc De Vos.
The report is split into three main areas: the statement by the chair of the Committee,
the annual report on remuneration and the policy report.
The policy report will be subject to a binding shareholder vote at the 2026 Annual
General Meeting and the policy will take effect for the Financial year beginning on 1
January 2026. The annual report on remuneration provides details on remuneration in
the period and some other information required by the Regulations. It will be subject to
an advisory shareholder vote at the 2026 Annual General Meeting.
The Companies Act 2006 requires the auditors to report to the shareholders on certain
parts of the Directors’ remuneration report and to state whether, in their opinion, those
parts of the report have been properly prepared in accordance with the Regulations.
The Chair’s annual statement
The information provided in this part of the Directors’ remuneration report is not subject
to audit.
The remuneration committee reviewed the current level of board fees and salaries
payable to the chairman, the CEO and CFO.
Clare Findlay
Chair of the Committee
This report, prepared by the Remuneration Committee
(the “Committee”), is on the activities of the board in
respect of the remuneration of directors for the year
ending 31 December 2025. It sets out the remuneration
policy and remuneration details for the executive and
non-executive directors of the Group. It has been
prepared in accordance with Schedule 8 of The Large
and Medium-sized Companies and Groups (Accounts
and Reports) Regulations 2008 (the “Regulations”).
88
89
Directors’ remuneration report
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Annual report on remuneration
The information provided in this part of the Directors’ remuneration report is subject to audit.
The remuneration of the executive and non-executive directors of the Group in respect of services to the Group were
as follows:
For the year ended 31 December 2025:
In euros
Salary and
fees
Benefits
Bonus
LTIP
Pension
Total
Total fixed
Total
variable
Executive directors
Guido Van der Schueren
1
472,711
67,332
101,025
-
1,155
642,223
541,198
101,025
Michael Rottenborn, CEO
259,545
35,185
90,410
-
9,135
394,275
303,865
90,410
Joachim Van Hemelen, CFO
270,185
-
84,118
-
-
354,303
270,185
84,118
Total executive directors
1,002,441
102,517
275,553
-
10,290
1,390,801
1,115,248
275,553
Non-executive directors
Clare Findlay
38,112
-
-
-
-
38,112
38,112
-
Luc De Vos
31,000
-
-
-
-
31,000
31,000
-
Total non-executive
directors
69,112
-
-
-
-
69,112
69,112
-
Total directors
1,071,553
102,517
275,553
-
10,290
1,459,913
1,184,360
275,553
For the year ended 31 December 2024:
In euros
Salary and
fees
Benefits
Bonus
LTIP
Pension
Total
Total fixed
Total
variable
Executive directors
Guido Van der Schueren
1
425,584
63,960
60,342
-
952
550,838
490,496
60,342
Michael Rottenborn, CEO
262,812
38,731
53,161
-
9,568
364,272
311,111
53,161
Joachim Van Hemelen, CFO
267,395
-
43,914
-
-
311,309
267,395
43,914
Total executive directors
955,791
102,691
157,417
-
10,520
1,226,419
1,069,002
157,417
Non-executive directors
Clare Findlay
38,550
-
-
-
-
38,550
38,550
-
Luc De Vos
31,000
-
-
-
-
31,000
31,000
-
Total non-executive
directors
69,550
-
-
-
-
69,550
69,550
-
Total directors
1,025,341
102,691
157,417
-
10,520
1,295,969
1,138,552
157,417
Salary and fees are the contracted annual salaries and board fees that are payable. Each executive director received
board fees, prorated where appointed or resigned during the year, which are included within the Salary and fees
column.
1
includes the director’s daughter, who is also an employee of the Group
2
includes the director’s daughter, who is also an employee of the Group
Benefits include car allowance, travel allowance, home allowance and private medical insurance payments.
The executive directors’ total available bonus for the year was structured as combination of the following elements:
→
for meeting the board-approved group revenue target,
→
for meeting the board-approved group adjusted operating profit target,
→
for fulfilling specific KPIs, as agreed and signed off by the Remuneration Committee.
The board-approved KPI-based targets for the year were fully met and the financial targets outperformed. The
Remuneration Committee authorised bonus payments based on the realized performance in function of the defined
plan criteria.
The Group employs various profit share schemes in which a portion of its profit is shared with its employees. The
Executive Directors participate in these profit share schemes in according to their allocation over the various business
units. Any earned profit share amounts are included in the bonus figure for the year.
LTIP (long term incentive plan) is a cash award that will be payable after 3 years of continuous service from the date
of award.
Contributions totalling €10,000 (2024: €11,000) were made to the personal pension schemes of two (2024: two
) of
the directors in accordance with their employment contracts. The Group operates a defined contribution scheme
where contributions are calculated as a percentage of gross salary. There are no defined benefit schemes.
→
Scheme interests awarded during the financial year
There were no share-based awards during the year and there are no outstanding share options as at 31 December
2025.
The aggregate amount of gains made by directors on the exercise of share options during the year was €nil (2024:
€nil).
→
Directors and their interests in shares of the Company
The directors held the following interests in the shares of Hybrid Software Group PLC as at 31 December 2025:
Guido Van der
Schueren *
Michael
Rottenborn **
Joachim Van
Hemelen ***
Clare Findlay
Luc De Vos
Shares beneficially
owned
27,476,064
3,850
-
100
5,000
Total interest in
shares
27,476,064
3,850
-
100
5,000
* The interests of Guido Van der Schueren are held in the name of Congra Software S.à r.l., Together with his wife
and children, he owns approximately 69.01% of the shares of Congra Software S.à. r.l..
** Michael Rottenborn is also a shareholder of Congra Software S.à r.l., he owns approximately 0.38% of the shares of
Congra Software S.à. r.l..
*** Joachim Van Hemelen is also a shareholder of Congra Software S.à r.l., he owns approximately 0.30% of the
shares of Congra Software S.à. r.l..
The information provided in the following sub-sections of the Directors’ remuneration report are not subject to audit.
90
91
Directors’ remuneration report
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
→
CEO remuneration table
The following table shows the CEO’s remuneration and percentage achievement of annual bonuses and long-term
incentives over the past 5 years:
2021
2022
2023
2024
2025
Total CEO remuneration (in thousands of euros)
458
358
346
337
394
Annual bonus pay-out against maximum opportunity
100%
44%
20%
68%
78%
Long term incentive vesting rates against maximum
opportunity
n/a
n/a
n/a
n/a
n/a
→
Percentage change in remuneration of directors
The table below shows the percentage change over the preceding year, in the base payment currency of
remuneration for the directors and for all employees of the Group:
Salary and fees
Benefits
Bonus
Director
2024
2025
2024
2025
2024
2025
Guido Van der Schueren
(7.4%)
12.0%
(3.9%)
0.0%
34.1%
67.4%
Michael Rottenborn
3
(4.2%)
2.9%
(4.8%)
(8.9%)
17.0%
71.7%
Joachim Van Hemelen
4
(1.0%)
1.0%
0.0%
0.0%
30.1%
91.6%
Clare Findlay
5
47.6%
0.0%
0.0%
0.0%
0.0%
0.0%
Luc De Vos
6
55.0%
0.0%
0.0%
0.0%
0.0%
0.0%
All employees average
3.7%
4.1%
0.0%
0.0%
0.0%
0.0%
For further information with regards to the changes in 2023 and 2024, please refer to the annual report for the
relevant financial year.
→
Relative importance of spend on pay
The main operating expense of the Group is the cost of its employees due to the nature of the work of the Group.
In order to attract and retain staff, pay and reward levels need to be competitive and commensurate with the highly
technical skills that are required.
The table below shows the amounts paid to employees (for continuing operations) and the amounts distributed to
shareholders.
In thousands of euros
2025
2024
% change
Staff expenses (see note 12 to the consolidated financial statements)
30,021
28,335
6.0%
Dividends paid to shareholders
-
-
0%
→
Statement of implementation of remuneration policy in the following financial year
There are no significant changes in the way that the remuneration policy will be implemented in the next financial year
compared to how it was implemented during this financial year.
The remuneration policy will be voted upon during the next AGM to be held during 2026.
3
Michael Rottenborn joined the Group in January 2020
4
Joachim Van Hemelen was appointed a Director in September 2022
5
Clare Findlay joined the Group in March 2019
6
Luc de Vos joined the Group in February 2021
Remuneration policy
The information provided in this part of the Directors’ remuneration report is not subject to audit.
The board determines the Group’s policy for employee, executive and non-executive remuneration and the individual
remuneration packages for executive directors. In setting the remuneration packages, the board considers the
pay and benefits that are offered to existing Group employees and the salaries, bonuses and benefits available to
directors of comparable companies and the continued commitment to the Group through appropriate long-term
incentive schemes, such as the award of shares and share options.
The board did not consult with employees when drawing up the remuneration policy set out in this part of the report
and no views about the policy have been expressed by shareholders of the Company to the board.
→
Remuneration of executive directors
Consistent with this policy, remuneration packages awarded to executive directors include a mix of basic salary
and performance related remuneration that is designed to incentivise the director to achieve the Group’s strategic
objectives. The remuneration packages usually include some or all of the following elements:
-
base salary, as agreed by the board;
-
bonus scheme, with performance measured against annually set targets and personal objectives all reviewed and
approved by the board;
-
profit share bonus scheme based on component and group performance
-
equity, by way of shares and share options;
-
other benefits, such as car allowance, company contribution into a personal pension scheme, private medical
insurance, life assurance and long-term sickness insurance; and
-
recruitment fee, notice period for termination of contract or payments for loss of office.
All of the above elements are negotiable between the board and the prospective director.
There are no fixed term contracts and each director must resign and be reappointed at each AGM.
The executive directors’ total bonus available for the year will be structured as follows:
In the forthcoming year the above policy will be applied. The bonus payment for the Chairman, CEO and CFO is
divided into 3 elements and weighted dependant on individual role and responsibility:
-
achievement of the board-approved group adjusted operating profit target,
-
achievement of the board-approved group’s components adjusted operating profit targets, and
-
achievement of the individual KPIs as agreed and signed off by the Remuneration Committee.
→
Remuneration of non-executive directors
The fees paid to non-executive directors are determined by the board. The non-executive directors do not receive
any other fixed forms of remuneration or benefits.
92
93
Directors’ remuneration report
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Future policy table
The information provided in this part of the Directors’ remuneration report is not subject to audit.
The following table provides a summary of the key components of the remuneration package for executive directors:
Salary and fees
Purpose
Rewards skills and experience and provides the basis for a competitive remuneration package.
Operation
Salaries and fees, including recruitment and loss of office payments, are agreed with the
director with reference to the role, the individual's experience, and market practice and market
data.
Opportunity
100% of contractual salary and fees are paid for services rendered to the Group.
Performance
measures
Reviewed annually and executive directors' salaries are generally increased in line with
company-wide pay increases. Exceptional changes are tied to significant changes in the Group
or exceptional performance.
Recovery
No provision for recovery or withholding of payments unless breach of contract.
Taxable benefits
Purpose
Protects against risks and provides other benefits.
Operation
The provision of benefits to executive directors includes private medical cover, life insurance
and ill-health income protection.
Opportunity
100% of the premiums due are paid on behalf of the executive director.
Performance
measures
There are no performance measures associated with the benefits other than being a current
executive director.
Recovery
No provision for recovery or withholding of payments unless breach of contract.
Bonuses
Purpose
Rewards delivery of the near-term business targets set each year, the individual performance
of the executive directors in achieving those targets, and contribution to delivering the Group's
strategic objectives.
Operation
Bonuses are agreed in the employment contract with the executive director. The level of bonus
payable is determined based on the role, the individual's experience, and market practice and
market data.
Opportunity
Generally 50% to 100% of the annual bonus is achievable on meeting the revenue and expense
targets as set by the board. Adjustments can be made to the plan for specific, strategic
objectives.
Performance
measures
The performance objectives include only financial measures. The financial measures are
generally related to revenue and controlling expenses.
Recovery
Payment of annual bonuses is usually withheld until the Group's auditors have cleared the audit
and the board have approved payment of the bonuses.
The following table provides a summary of the key components of the remuneration package for non-executive
directors:
Board fees
Purpose
Attract and retain individuals with the required skills, experience and knowledge so that the
board is able to effectively carry out its duties.
Operation
Fees are paid monthly or quarterly.
Opportunity
100% of contractual fees are paid for services rendered to the Group.
Performance
measures
Reviewed annually and increased only in exceptional circumstances.
Recovery
No provision for recovery or withholding of payments if performance obligations have been
fulfilled.
→
Recruitment remuneration
For the appointment of a new director, the aforementioned components will be included in their remuneration
package and negotiated with consideration of the role, their experience and market data. The fees that may be
agreed may include sign-on payments to incentivise the director to take the appointment. These sign-on fees will be
negotiated taking into consideration the role, their experience and market data.
→
Pay policy for other employees
The Company values its total workforce and aims to provide remuneration packages that are geographically
competitive, comply with any local statutory requirements and are applied fairly and equitably across the Group.
Where remuneration is not determined by statutory regulation, the following key principles are applied:
-
to reward in a manner that allows for stability in the business and for sustainable long-term growth
-
to reward fairly and consistently for each role with due regard to peers, the economy, the marketplace and the
technical skills required
→
Service contracts
It is the Group’s policy that executive directors should have contracts with an indefinite term. Non-executive directors
are appointed for an initial six-year term, with provisions for extension, subject to mutual agreement.
All Directors offer themselves for annual re-election at each AGM in accordance with the UK Corporate Governance
Code. Service agreements and letters of appointment are available for inspection at the registered office address of
the Company.
None of the directors are entitled to any specific indemnity which would be due or liable to be due on termination of
their appointment.
Pension
Purpose
Enables executive directors to build long term retirement savings.
Operation
The Group pays defined contributions into a pension plan on behalf of the executive director.
Opportunity
100% of the contributions due are paid directly to the pension company on behalf of the
executive director.
Performance
measures
There are no performance measures associated with the benefits other than being a current
executive director.
Recovery
No provision for recovery or withholding of payments unless breach of contract.
94
95
Directors’ remuneration report
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Date of contract
Date of
appointment
Notice from
the Company
Notice from
the director
Unexpired
term on 31
December
2025
Guido Van der
Schueren
4 April 2017
16 May 2014
12 months
12 months
-
Michael Rottenborn
1 January 2020
2 January 2020
12 months
12 months
-
Joachim Van Hemelen
1 January 2021
1 September 2022
12 months
12 months
-
Clare Findlay
1 March 2019
1 March 2019
-
-
26 months
Luc De Vos
4 February 2021
15 February 2021
-
-
13 months
→
Application of the policy
The table below shows the level of remuneration that would be received by the directors’ in accordance with the
directors’ remuneration policy.
Euro 000s
Minimum
performance
Medium
performance
Maximum
performance
2025 actual
Guido Van der Schueren
541
604
667
642
Michael Rottenborn
304
362
420
394
Joachim Van Hemelen
270
317
364
354
Clare Findlay
39
39
39
39
Luc De Vos
31
31
31
31
The scenarios have been illustrated for each executive director based on the following:
Minimum
performance
-
Base salary/fee, taxable benefits and pension
-
No bonus pay-out
-
No long term incentive plan
Medium
performance:
-
Base salary/fee, taxable benefits and pension
-
50% bonus pay-out
-
50% long term incentive plan
Maximum
performance:
-
Base salary/fee, taxable benefits and pension
-
100% bonus pay-out
-
100% long term incentive plan
The report was approved by the board of directors on 12 March 2026 and signed on its behalf by:
Clare Findlay
Chair of the Remuneration Committee
96
97
Independent auditor’s report
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Independent auditor’s report
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF HYBRID SOFTWARE GROUP PLC
Opinion
We have audited the financial statements of Hybrid Software Group plc (the ‘parent company’) and its
subsidiaries (the ‘group’) for the year ended 31 December 2025 which comprise the Consolidated Statement
of Comprehensive Income, the Consolidated and Company Statement of Financial Position, the Consolidated
and Company Statements of Changes in Equity, the Consolidated Statement of Cash Flows and notes to the
financial statements, including significant accounting policies. The financial reporting framework that has been
applied in their preparation is applicable law and UK-adopted international accounting standards and as
regards the parent company financial statements, as applied in accordance with UK Generally Accepted
Accounting Practice (‘UK GAAP’) and the provisions of the Companies Act 2006. In our opinion:
•
the financial statements give a true and fair view of the state of the group’s and of the parent company’s
affairs as at 31 December 2025 and of the group’s profit for the year then ended;
•
the group financial statements have been properly prepared in accordance with UK-adopted
international accounting standards;
•
the parent company financial statements have been properly prepared in accordance with UK GAAP,
including FRS 101 Reduced Disclosure Framework, and as applied in accordance with the provisions
of the Companies Act 2006; and
•
the financial statements have been prepared in accordance with the requirements of the
Companies Act 2006.
Separate opinion in relation to IFRSs as adopted by the European Union
As explained in note 2 to the group financial statements, the group, in addition to complying with its legal
obligation to apply UK adopted International Accounting Standards, has also applied International Financial
Reporting Standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies to the European Union
(EU-endorsed IFRSs). In our opinion, the group financial statements give a true and fair view of the consolidated
financial position of the group as at 31 December 2025 and of its consolidated financial performance and its
cash flows for the year then ended in accordance with EU endorsed IFRSs.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable
law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the
audit of the financial statements section of our report. We are independent of the group and parent company
in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK,
including the FRC’s Ethical Standard as applied to listed entities, and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of
accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors’
assessment of the group’s and parent company’s ability to continue to adopt the going concern basis of
accounting included the following audit procedures:
2
•
Obtaining an understanding of the controls in place around the preparation of the going concern
forecast and future plans for the group through discussions with management;
•
Obtaining management’s assessment for the going concern period to 31 March 2027 and checking
the mathematical accuracy of the cash flow forecasts and budgets prepared;
•
Comparing budgeted performance for the year ended 31 December 2025 against actual to assess
management’s historical forecasting accuracy;
•
Challenging management where appropriate on the reasonableness of key inputs and
assumptions underpinning the going concern model. These challenges included but not limited
to:
o
Performing sensitivity analysis on key inputs and assumptions to assess the headroom
across the going concern period. Key inputs and assumptions included: (i) sales growth
rates, (ii) loss of key customers and (iii) levels of operating expenditure;
o
Assessing management’s stress testing performed;
o
Assessing the prospective accuracy of management’s forecast in 2026 against post year-
end bank statements and management financial reports;
•
Reviewing the terms of loan facilities within the group to confirm their availability across the
forecast period and to ensuring compliance with any conditions attached;
•
Undertaking a review of subsequent events on matters impacting the going concern assessment;
and
•
Considering the adequacy of the disclosures and accounting policies in the financial statements.
Based on the work we have performed, we have not identified any material uncertainties relating to events or
conditions that, individually or collectively, may cast significant doubt on the group’s or parent company's
ability to continue as a going concern for a period of at least twelve months from when the financial statements
are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the
relevant sections of this report.
Our application of materiality
Financial statements - group
Financial statements – parent
company
Overall materiality
€800,000 (2024: €641,000)
€400,000 (2024: €320,000)
Basis
for
determining
overall
materiality
1.5% of revenue (2024: 1.25% of
revenue)
1% of net assets as constrained by
the allocation of overall group
materiality (2024: 2% of net assets
as constrained by the allocation of
overall group materiality)
Rationale
for
the
benchmark
applied
The group derives the majority of
its
revenue
from
software
licensing, subscription sales and
service contracts. While revenue
is not the sole financial metric with
which
management
and
stakeholders measure and assess
financial performance, the nature
of
the
business
activities
and
We considered the nature of the
parent company, being a holding
company
for
the
investment
activities
of
the
group,
and
determined that net assets was an
appropriate
basis
for
the
calculation
of
the
overall
materiality given the significant
98
99
Independent auditor’s report
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
3
operations result in the group
being highly revenue driven.
We consider total revenue to be
the most appropriate basis for
determining overall materiality for
the group as it provides users of
the financial statements with a
more
stable
measure
year-on-
year
of
financial
performance,
compared to profit before tax
wh
ich
has
historically
been
volatile.
On
this
basis,
revenue
was
determined to be an appropriate
basis
for
determining
overall
materiality.
asset base as at 31 December
2025.
Performance materiality
€560,000 (2024: €448,000)
€280,000 (2024: €224,000)
Basis
for
determining
performance materiality
70%
of
the
group
overall
materiality (2024: 70%)
70%
of
the
parent
company
overall materiality (2024: 70%)
Rationale
for
the
benchmark
applied
In determining the performance materiality, we have considered the
following factors:
•
The level of significant judgements and estimates;
•
The risk assessment and aggregation of risk and the
effectiveness of controls;
•
The control environment and the group’s financial reporting
controls and processes;
•
It is the third year of our appointment as group auditor; and
•
The stability of key management personnel.
We use performance materiality to reduce to an appropriately low level the probability that the aggregate of
uncorrected and undetected misstatements exceeds overall materiality. Specifically, we use performance
materiality in determining the nature and extent of our testing of account balances, classes of transactions and
disclosures, for example in determining sample sizes.
We agreed with the Audit Committee that we would report to them misstatements identified during our audit
above €40,000 (2024: €32,000) for the audit of the consolidated financial statements and €28,000 (2024:
€16,000) for the parent company financial statements as well as misstatements below those amounts that, in
our view, warranted reporting for qualitative reasons.
For each component in the scope of the group audit, we allocated a materiality that was less than the overall
group materiality. The range of overall materiality allocated across the components was between €280,000
(2024: €224,000) and €392,000 (2024: €313,600).
Our approach to the audit
In designing our audit approach, we determined materiality and assessed risk of material misstatement in the
financial statements. In particular, we looked at areas involving significant accounting estimates and
judgements by the directors, including the recognition of revenue, the impairment of goodwill and other
4
identifiable intangible assets, the recoverability of investments in subsidiaries and the capitalisation of
development costs. Procedures were then performed to address the risk identified and for the most significant
assessed risks of misstatement, the procedures performed are outlined below in the key audit matters section
of this report. We re-assessed the risks throughout the audit process and concluded that the scope remained
in line with that determined at the planning stage of the audit.
An audit was performed on the financial information of the group’s material operating components which, for
the year ended 31 December 2025, were located in the United Kingdom (UK) and Belgium. The audit of the group
and parent company financial statements was undertaken by the group audit team based in London, with
meetings being held with group management over video-link or in person, in Belgium and the UK. Specific scope
procedures were performed over non-material operating components of the Group (United States of America
(USA) and the United Kingdom (UK)) by the group audit team and was conducted remotely, with inventory
existence procedures being undertaken in person. The component in Belgium was audited by a component
auditor operating under our instruction. We communicated regularly with the component audit team during all
stages of the audit and we were responsible for the scope and oversight of the audit process, which included
an onsite review of the work conducted at the component auditor’s office in Belgium. This, in conjunction with
additional procedures performed by the group audit team, provided sufficient appropriate audit evidence for
our opinion on the group and parent company financial statements.
As a result of our materiality and risk assessments, we determined which components required a full scope
audit of their financial information, with consideration of their significance to the group based on their
contribution to overall revenue and their risk characteristics. On this basis. we scoped in four components
requiring a full scope audit of their financial information for group purposes and two components which were
subjected to specified audit procedures due to specific risk characteristics and due to the presence of material
classes of transactions and account balances.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the financial statements of the current period and include the most significant assessed risks of material
misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on: the
overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter
How our scope addressed this matter
Revenue recognition (note 7)
Under
ISA
(UK)
240,
there
is
a
rebuttable
presumption that revenue recognition is a significant
fraud risk. The Group earns revenue from contracts
with customers which are required to be recognised
under IFRS 15 –
‘Revenue from Contracts with
Customers’. The complexity arises due to differing
contractual performance obligations, depending on
the revenue stream. For example:
•
Software licences are recognised at a point
in
time,
when
the
license
has
been
delivered
to
the
customer
and
all
performance obligations are complete.
•
Multi-
year
licence
and
distribution
agreements come with licence royalties
In addition to the procedures required by ISA (UK)
240, our work on this key audit matter included:
•
Documenting our understanding of the
information system and related controls
relevant to each material revenue stream;
•
Evaluating
the
appropriateness
of
the
information system and the effectiveness
of the design and implementation of the
related controls;
•
Substantive
transactional
testing
of
income
recognised
in
the
financial
statements,
including
deferred
and
accrued income balances recognised at
the year-
end. This included selecting a
100
101
Independent auditor’s report
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
5
which
are
recognised
upon
receiving
confirmations from customers.
•
Support
and
Maintenance
are
both
recognised
over
the
duration
of
the
contractually agreed period.
•
Physical good sales are recorded when
control of the item has passed on to the
customer. A material error in this balance
could affect the decision making of users
of the financial statements. As a result,
there is a risk of fraud or error in revenue
recog
nition
due
to
the
potential
to
inappropriately recognise revenue, and
therefore revenue recognition is a key audit
matter.
sample of sales from the ledger and
vouching to customer order, invoice and
delivery information;
•
Testing a sample of sales covering pre and
post year-end to source documentation to
ensure they have been posted to the
correct accounting period;
•
Verifying
the
recognition
of
revenue
through review of supporting information
regarding the satisfaction of performance
obligations; and
•
Reviewing revenue contracts active during
the current year and particularly around
the year end to ensure revenue had been
recognised in the correct period and that
performance obligations had been met.
Other information
The other information comprises the information included in the annual report, other than the financial
statements and our auditor’s report thereon. The directors are responsible for the other information contained
within the annual report. Our opinion on the group and parent company financial statements does not cover
the other information and, except to the extent otherwise explicitly stated in our report, we do not express any
form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify
such material inconsistencies or apparent material misstatements, we are required to determine whether this
gives rise to a material misstatement in the financial statements themselves. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to
report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
•
the information given in the strategic report and the directors’ report for the financial year for which the
financial statements are prepared is consistent with the financial statements; and
•
the strategic report and the directors’ report have been prepared in accordance with applicable legal
requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment
obtained in the course of the audit, we have not identified material misstatements in the strategic report or the
directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006
requires us to report to you if, in our opinion:
6
•
adequate accounting records have not been kept by the parent company, or returns adequate for our
audit have not been received from branches not visited by us; or
•
the parent company financial statements are not in agreement with the accounting records and
returns; or
•
certain disclosures of directors’ remuneration specified by law are not made; or
•
we have not received all the information and explanations we require for our audit.
European Single Electronic Format (ESEF)
Hybrid Software Group plc has prepared consolidated financial statements in the form of an electronic file in
the European Single Electronic Format (ESEF), which comprise the Consolidated Statement of Comprehensive
Income, Consolidated Statement of Financial Position, Consolidated Statement of Changes in Equity,
Consolidated Statement of Cash Flows and the related notes. The requirements for this format are set out in
the regulatory technical standards as laid down in the EU Delegated Regulation.
The Board of directors are responsible for the preparation, in accordance with the ESEF requirements in the EU
Delegated Regulation, of the digital consolidated financial statements identified.
We were engaged by Hybrid Software Group plc to report on whether the digital consolidated financial
statements are prepared in all material respects, in compliance with the ESEF regulation under the Delegated
Regulation. Our responsibility, under the terms of our engagement, is to obtain sufficient and appropriate
information to conclude whether the format and the tagging of the digital consolidated financial statements
complies, in all material respects, with the ESEF requirements under the Delegated Regulation.
In our opinion, based on our work performed, the format and the tagging of information in the digital
consolidated financial statements as per 31 December 2025, complies in all material respects, with the ESEF
requirements under the EU Delegated Regulation.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the
preparation of the group and parent company financial statements and for being satisfied that they give a true
and fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the group and parent company financial statements, the directors are responsible for assessing
the group’s and the parent company’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the directors either intend to
liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of
irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities,
including fraud is detailed below:
•
We obtained an understanding of the group and parent company and the sector in which they
operate to identify laws and regulations that could reasonably be expected to have a direct effect
102
103
Independent auditor’s report
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
7
on the financial statements. We obtained our understanding in this regard through discussions
with management, industry research and experience of the sector.
•
We determined the principal laws and regulations relevant to the group and parent company in
this regard to be those arising from:
o
The Companies Act 2006;
o
UK-adopted International Accounting Standards;
o
EU-endorsed International Financial Reporting Standards (EU-endorsed IFRSs)
o
United Kingdom Generally Accepted Accounting Practice (UK GAAP);
o
The UK Corporate Governance Code;
o
General Data Protection Regulation;
o
The Bribery Act 2010;
o
Serious Organised Crime and Police Act 2005;
o
Proceeds of Crime Act 2002;
o
Euronext Listing Rules;
o
UK tax legislation; and
o
Tax legislation applicable in other jurisdictions
•
We designed our audit procedures to ensure the audit team considered whether there were any
indications of non-compliance by the group and parent company with those laws and regulations.
These procedures included, but were not limited to:
o
Making enquiries of management;
o
Reviewing Board minutes;
o
Reviewing legal expenditure nominal ledger accounts; and
o
Reviewing Regulatory News Services announcements.
•
We also identified the risks of material misstatement of the financial statements due to fraud. We
considered, in addition to the non-rebuttable presumption of a risk of fraud arising from
management override of controls, that the potential for management bias was identified in relation
to revenue recognition, the impairment of goodwill and other intangible assets, the recoverability
of investments in subsidiaries and the capitalisation of development costs. We addressed this by
challenging the assumptions and judgements made by management when auditing these
significant accounting estimates. Please refer to the Key audit matters section of our report for
further information.
•
As in all of our audits, we addressed the risk of fraud arising from management override of controls
by performing audit procedures which included, but were not limited to: the testing of journals;
reviewing accounting estimates for evidence of bias; and evaluating the business rationale of any
significant transactions that are unusual or outside the normal course of business.
•
As part of the group audit, we have communicated with the component auditor the risks
associated with the components of the group, including the risk of fraud as a result of management
override of controls. To ensure that this has been completed, we reviewed the component auditor
working papers in this area and obtained responses to our group instructions from the component
auditors.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including
those leading to a material misstatement in the financial statements or non-compliance with regulation.
This
risk increases the more that compliance with a law or regulation is removed from the events and transactions
reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves
intentional concealment, forgery, collusion, omission or misrepresentation.
8
A further description of our responsibilities for the audit of the financial statements is located on the Financial
Reporting Council’s website at:
www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our
auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006.
Our audit work has been undertaken so that we might state to the company’s members
those matters we are required to state to them in an auditor’s report and for no other purpose.
To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone, other than the company and the
company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Joseph Archer (Senior Statutory Auditor)
15 Westferry Circus
For and on behalf of PKF Littlejohn LLP
Canary Wharf
Statutory Auditor
London E14 4HD
1
2
M
arc
h
2026
104
105
106
107
Hybrid Software Group PLC | Annual Report 2025
FINANCIAL
STATEMENTS
The following pages contain the detailed audited financial
statements for Hybrid Software Group PLC and its subsidiary
companies.
Consolidated statement of changes in equity
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December
In thousands of euros
Note
2025
2024
Continuing operations
Revenue
7
Cost of sales
(7,653 )
(8,078 )
Gross profit
Selling, general and administrative expenses
(28,299 )
(26,989 )
Impairment of goodwill
16
(6,280 )
Research and development expenses
(13,816 )
(13,324 )
Other operating expenses
8
(5 )
(70 )
Other income
9
Operating profit / (loss)
(3,090 )
Finance income
13
Finance expenses
13
(335 )
(493 )
Net finance income / (expenses)
(261 )
Foreign currency exchange losses
(1,115 )
(10 )
Profit / (Loss) before tax
(3,361 )
Tax (expense) / credit
18
(118 )
Profit / (Loss) from continuing operations
(2,708 )
Loss on sale of discontinued operation, net of tax
35
(120 )
Profit / (Loss) for the period
(2,828 )
Other comprehensive (loss) / income
Items that may be reclassified subsequently to profit or loss:
Foreign currency translation differences
(1,386 )
Other comprehensive (loss) / income for the year
(1,386 )
Total comprehensive income / (loss) attributable to equity holders
(1,666 )
Earnings per ordinary share
Basic earnings per share (euro)
29
(0.09 )
Diluted earnings per share (euro)
29
(0.09 )
The notes on pages 112 to 150 are an integral part of these consolidated financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
For the year ended 31 December
In thousands of euros
Note
2025
2024
ASSETS
Non-current assets
Property, plant and equipment
14
Right-of-use assets
24
Other intangible assets
15
Goodwill
16
Financial assets
17
Deferred tax assets
18
Trade and other receivables due after more than one year
7, 20
Contract assets due after more than one year
7
Other assets due after more than one year
Total non-current assets
Current assets
Inventories
19
Current tax assets
Trade and other receivables
7, 20
Contract assets
7
Other current assets
21
Prepayments
Cash and cash equivalents
22
Total current assets
TOTAL ASSETS
EQUITY AND LIABILITIES
Equity attributable to owners of the Parent
Share capital
23
Share premium
23
Merger reserve
23
Treasury shares
23
(684 )
(193 )
Retained earnings
Foreign currency translation reserve
(10,894 )
(9,508 )
Total equity
Non-current liabilities
Deferred tax liabilities
18
Lease liabilities
24
Retirement benefit obligations
Accrued liabilities
Loans & borrowings
26
Other liabilities
25
Contract liabilities
7, 27
Total non-current liabilities
Current liabilities
Current tax liabilities
Trade and other payables
Lease liabilities
24
Accrued liabilities
Loans & borrowings
26
Other liabilities
25
Contract liabilities
7,27
Provisions
28
Total current liabilities
Total liabilities
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
The notes on pages
112 to 150
are an integral part of these consolidated financial statements.
These financial statements on pages 108 to 111 were approved and authorised for issue by the Board of Directors on 12 March 2026 and
were signed on its behalf by:
Michael Rottenborn
Director
Company registered number: 10872426
108
109
Notes to the consolidated financial statements
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
In thousands of euros
Note
Share
capital
Share
premium
Merger
reserve
Treasury
shares
Retained
earnings
Foreign
currency
translation
reserve
Total equity
Balance at 31 December 2023
(179 )
(10,670 )
Total comprehensive income for the year
Net loss for the year
(2,828 )
(2,828 )
Foreign currency translation differences
Total comprehensive loss for the year
(2,828 )
(1,666 )
Transactions with owners
Share-based payment transactions
23
(40 )
Own shares re-purchased
23
(54 )
(54 )
Total transactions with owners
(14 )
(40 )
(54 )
Balance at 31 December 2024
(193 )
(9,508 )
Total comprehensive income for the year
Net income for the year
Foreign currency translation differences
(1,386 )
(1,386 )
Total comprehensive income for the year
(1,386 )
Transactions with owners
Share-based payment transactions
23
(32 )
Own shares re-purchased
23
(523 )
(523 )
Total transactions with owners
(491 )
(32 )
(523 )
Balance at 31 December 2025
(684 )
(10,894 )
The notes on pages
112 to 150
are an integral part of these consolidated financial statements.
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December
In thousands of euros
Note
2025
2024
Cash flows from operating activities:
Net profit / (loss) for the year
(2,828 )
Adjustments to reconcile net profit to net cash:
- Impairment of goodwill
16
- Amortisation and impairment of intangible fixed assets
15
- Depreciation of right-of-use-assets
24
- Depreciation and impairment of property, plant & equipment
14
- (Profit) / Loss on disposal of tangible fixed assets
(46 )
- Net finance (income) / expenses
13
(197 )
- Net foreign currency exchange losses
- Unrealised foreign exchange loss on intercompany loan
(672 )
- Tax expense / (credit)
18
(653 )
- Loss on sale of discontinued operation, net of tax
35
- Other items
(54 )
(20 )
Total adjustments to net profit
Change in operating assets and liabilities:
- Financial assets
17
(73 )
- Inventories
19
- Trade and other receivables
20
(2,035 )
(614 )
- Contract assets
(1,289 )
- Other current assets
21
(90 )
- Prepayments
(70 )
- Retirement benefit obligations
(814 )
- Trade and other payables
- Accrued liabilities
(546 )
- Contract liabilities
27
(853 )
Total change in operating assets and liabilities
(2,431 )
Cash generated from operating activities
Interest received
13
Interest paid
13
(239 )
(493 )
Taxes paid
(290 )
(553 )
Net cash flow from operating activities
Cash flows from investing activities:
Acquisitions, cash consideration net of cash acquired
(370 )
Capital expenditures on property, plant & equipment
14
(831 )
(529 )
Capital expenditures on other intangible assets
15
(1,239 )
Capitalisation of development expenses
15
(3,296 )
(3,451 )
Proceeds on disposal of property, plant & equipment
Proceeds on disposal of discontinued operations
35
Net cash flow used in investing activities
(5,666 )
(3,922 )
Cash flows from financing activities:
Repayment against loans and borrowings
26
(2,750 )
(1,300 )
Loans obtained through acquisitions
Deferred consideration paid
25
(310 )
(310 )
Deferred consideration obtained through acquisitions
Movements in other liabilities
(67 )
Contingent consideration paid
25
(236 )
Net payments on lease liabilities
(991 )
(787 )
Own shares re-purchased
23
(523 )
(54 )
Net cash flow used in financing activities
(3,562 )
(2,687 )
Effect of exchange rate fluctuations on cash at 1 January
(545 )
Net increase in cash
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December
The notes on pages
112 to 150
are an integral part of these consolidated financial statements.
110
111
Notes to the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Hybrid Software Group PLC
|
Annual Report
2025
112
113
2.
BASIS OF PREPARATION (CONTINUED)
The Company is a public limited company , registered in England and Wales, domiciled in the United Kingdom
BASIS OF PREPARATION
These consolidated financial statements have been prepared in accordance with UK-adopted international accounting standards and
International Financial Reporting Standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union.
Basis of measurement
These consolidated financial statements have been prepared on the historical cost basis. Non-current assets are stated at the lower of
amortised cost and fair value less disposal costs when applicable. The methods used to measure fair value are discussed in Note 4
‘Determination of fair values’.
The amounts included in the financial statements for each of the Group’s entities are measured using their respective functional currency,
which is then translated to euro using appropriate exchange rates. The functional currency is determined for each of the Group’s entities
based on the primary economic environment in which each of the Group’s entities operates and the primary currency used for transactions in
those entities. The functional currency for each of the entities in the Group is shown in the table below.
Company name | Functional currency |
Hybrid Software Group PLC | Euro (EUR) |
HYBRID Software Inc | United States dollar (USD) |
Hybrid Software Helix Limited (formerly Global Graphics Software Limited) | Pound sterling (GBP) |
HYBRID Software UK Limited | Pound sterling (GBP) |
Conics BV | Euro (EUR) |
HYBRID Software Brandz NV | Euro (EUR) |
HYBRID Software Development NV | Euro (EUR) |
HYBRID Software NV | Euro (EUR) |
HYBRID Software Group SARL | Euro (EUR) |
HYBRID Software France SAS | Euro (EUR) |
HYRBID Software Iberia S.L.U. | Euro (EUR) |
HYBRID Software Italy SRL | Euro (EUR) |
HYBRID Software GmbH | Euro (EUR) |
HYBRID Software China Co. Limited | Chinese yuan (CNY) |
Global Graphics Kabushiki Kaisha | Japanese yen (JPY) |
HYBRID Software Australia Pty Limited | Australian dollar (AUD) |
Meteor Inkjet Limited | Pound sterling (GBP) |
Xitron, LLC | United States dollar (USD) |
These consolidated financial statements are presented in euros and all information which is presented in the following notes has been rounded
The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual
results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in
which the estimates are revised and in any future periods affected. Information about critical judgements in applying accounting policies that
have the most significant effect on the amounts recognised in the consolidated financial statements is included in Note 5 ‘Critical accounting
The Group’s business activities, together with the factors likely to affect its future development, performance and position are set out in the
strategic report. The Directors’ report further describes the financial position of the Group; its cash flows and liquidity position; the Group’s
objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments; and
its exposure to credit risk and liquidity risk.
As a result of the multiple factors playing out at the same time, restrictive monetary policy by central banks in the Western world, a near
deflationary economic situation in China, wars in Ukraine & the Middle East there is more uncertainty across the global economy. The Group
has considerable financial resources, together with long-standing relationships with customers through its licence and support sales model.
The Group’s forecasts and projections, taking account of potential and realistic changes in trading performance, and also including worst case,
severe, yet plausible downside scenarios, continue to indicate that the Group is able to operate within the level of existing cash resources.
The Directors have considered the impact of a significant reduction in sales against forecasts, which may arise if the economic conditions
further worsen in the company’s main markets, being the United States, Europe & Asia. This impact has been considered against a backdrop
of rising employment and operating costs due to inflation and increases in cost of living. The Directors have prepared Group cash flow forecasts
for a period of at least 12 months from the date of approval of these financial statements which indicate that, taking account of reasonably
possible downsides, the Group will have sufficient funds to meet its liabilities as they fall due for that period.
The Group is diversified in terms of products, customers and geographies served. Any reductions in revenue in one segment have generally
been offset by increased revenue in another segment. Across the Group, there have been no contract cancellations and to the Directors’
knowledge none of the Group’s significant customers have failed.
Consequently, the Directors are confident that the Group will have sufficient funds to continue to meet its liabilities as they fall due for at least
12 months from the date of approval of these financial statements and therefore have prepared these financial statements on a going concern
Alternative performance measures
The Strategic Report includes IFRS revenue and profit, constant exchange rate (“CER”) revenue, adjusted profit and EBITDA. See page 59
for further details.
CER revenue eliminates the impact of currency movements when comparing the current year to the comparative year. The current year is
restated at the comparative year’s actual exchange rates.
Adjusted profit, in management’s view, reflects the underlying operating performance of the business and provides a more meaningful
comparison of how the business is managed and measured from year to year by adjusting for non-recurring or uncontrollable factors which
affect the IFRS reported amounts.
EBITDA is also reported as an alternative measure of profit and is calculated by adding back interest, tax, depreciation and amortisation to
net profit. EBITDA is a common measure used by investors and analysts to comparatively evaluate the financial performance of companies.
The Board believes that evaluating the Group’s ongoing results may not be as useful if it is limited to reviewing only IFRS financial measures,
particularly because management uses adjusted financial information to evaluate its ongoing operations, for internal planning and forecasting
purposes and for the measurement of performance related bonuses.
The Board does not suggest that investors should consider these adjusted financial results in isolation from, or as a substitute for, financial
information prepared in accordance with IFRS. The Board presents EBITDA and adjusted financial results when reporting its financial results
to provide investors with additional tools to evaluate the Group’s results in a manner that focuses on what the Board believes to be its
underlying business operations. The Board believes that the inclusion of adjusted financial results provides consistency and comparability
with past reports.
Parent Company financial statements
The parent Company financial statements present information about the Company as a separate entity and not about its group. The Company
3.
MATERIAL ACCOUNTING POLICIES (CONTINUED)
Hybrid Software Group PLC
|
Annual Report
2025
114
115
Notes to the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
MATERIAL ACCOUNTING POLICIES
The principal accounting policies applied in the presentation of these consolidated financial statements are set out below. These policies have
been consistently applied to all the years presented.
In addition, the Group adopted
Presentation of Financial Statements (Amendments to IAS 1)
from 1 January 2025. The amendments require
the classification of liabilities as current or non-current and non-current liabilities with covenants. The amendments did not result in any
changes to the accounting policies or financial statement disclosures. There are no other new or amended interpretations or standards
effective for the financial year commencing 1 January 2025 that have had a material impact on the Group.
Subsidiaries are all entities controlled by the Group. The financial statements of subsidiaries are included in the consolidated financial
Transactions eliminated on consolidation
Inter-company balances and transactions, and any unrealised income and expenses arising from inter-company transactions, are eliminated
in preparing the consolidated financial statements. Unrealised losses are eliminated in the same way as unrealised gains, but only to the
extent that there is no evidence of impairment.
Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control is
transferred to the Group.
On 8 August 2025, the Group acquired the shares of HYBRID Software Brandz NV (“HS Brandz”) from Congra Software SARL (“Congra”).
Notwithstanding that Congra at acquisition date both controlled the Group as HS Brandz, the Board opted to apply the acquisition method
under IFRS3 rather than recording the acquisition at net book value.
For business combinations with acquisition dates on or after 1 January 2025, the Group has determined whether a particular set of activities
and assets is a business by assessing whether the set of assets and activities acquired includes, at a minimum, an input and substantive
process and whether the acquired set has the ability to produce outputs. The Group has an option to apply a ‘concentration test’ that permits
a simplified assessment of whether an acquired set of activities and assets is not a business. This election can be applied on a transaction by
transaction basis. The optional concentration test is met if substantially all of the fair value of the gross assets acquired is concentrated in a
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the dates of
the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional
currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between amortised cost in
the functional currency at the beginning of the year, adjusted for effective interest and payments during the year, and the amortised cost in
foreign currency translated at the exchange rate at the end of the year.
Non-monetary assets and liabilities that are measured at fair value in a foreign currency are retranslated to the functional currency at the
exchange rate at the date that the fair value was determined. Non-monetary items that are measured based on historical cost in a foreign
currency are translated using the exchange rate at the date of the transaction. Foreign currency differences arising on retranslation are
generally recognised in profit or loss.
Translation of financial statements of foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to euro at
exchange rates at the reporting date. The income and expenses of foreign operations are translated on a monthly basis to euro at average
exchange rates for each month. Foreign currency differences are recognised in other comprehensive income and presented in the foreign
Non-derivative financial instruments
Non-derivative financial instruments comprise trade and other receivables, other current assets, cash, trade payables, and other liabilities.
Non-derivative financial instruments are recognised initially at fair value plus any directly attributable transaction costs. After initial recognition,
non-derivative financial instruments are measured at amortised cost using the effective interest method, less any impairment losses.
The Group only uses derivative financial instruments (notably foreign currency forward and option contracts) to manage exposure to foreign
exchange risk. In accordance with guidelines established by the board, the Group does not permit the use of derivative financial instruments
for speculative purposes.
Derivative financial instruments are initially recognised at fair value at the date the derivative contract is entered into and are subsequently re-
measured to their fair value at each balance sheet date. The resulting gain or loss is recognised in the income statement immediately. At 31
Property, plant and equipment are stated at cost, net of depreciation and any provision for impairment in value. Ongoing repairs and
maintenance are expensed as incurred. Depreciation is provided on all property, plant and equipment, at rates calculated to write off the cost,
less estimated residual value, of each asset on a straight-line basis over its expected economic useful life. Depreciation is recognised within
operating expenses within the consolidated income statement.
The estimated useful lives for the current and comparative years of significant items of property, plant and equipment are as follows:
• | leasehold improvements | 3 to 10 years, or the remaining lease term |
• | computer equipment and office equipment | 3 to 5 years |
• | motor vehicles | 5 years |
Right-of-use assets are stated at cost, net of depreciation, any provision for impairment in value and any remeasurement of the associated
lease liability. Depreciation is provided on all right-of-use assets, at rates calculated to write off the cost, less estimated residual value, of each
asset on a straight-line basis over the earlier of its expected useful life or the term of the lease. Depreciation is recognised within operating
expenses within the consolidated income statement.
Group as lessor
The Group only acts as a lessor in the context of sub-lease arrangements. When the Group is an intermediate lessor, it accounts for its
interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease as being either a finance lease or
an operating lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. To classify
each sub-lease, an overall assessment is made as to whether the lease transfers to the lessee substantially all of the risks and rewards of
ownership incidental to ownership of the right-of-use asset. If this is the case, then the lease is a finance lease; if not, then it is an operating
lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life
of the asset. The group recognises lease payments received under operating leases as income on a straight-line basis over the lease term
The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group. The cost of an acquisition is measured
as the fair value of the assets acquired, equity instruments issued and liabilities incurred or assumed at the date of exchange of control. For
acquisitions before IFRS 3 (revised) became effective, costs directly attributable to the acquisition are also included. Identifiable assets
acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition
date. The excess of the cost of acquisition over the fair value of the Group's share of the identifiable net assets acquired is recorded as
goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, thus giving rise to negative goodwill
(a bargain purchase), the difference is recognised directly in the income statement within other income. Goodwill is stated at cost less any
accumulated impairment losses. Goodwill is allocated to cash-generating units for the purposes of impairment testing. Goodwill is not
amortised but is tested annually for impairment or more frequently if facts and circumstances warrant a review. Gains and losses on the
Other intangible assets that are acquired by the Group and have finite useful lives are measured at cost less accumulated amortisation and
any accumulated impairment losses. The amortisation of patents is included in cost of sales, the amortisation charge for software technology
and driver electronics is included in research and development expenses and amortisation charges related to any other intangible assets
acquired through business combinations are included in selling, general and administrative expenses.
Trademarks, know-how, patents and patent applications
Trademarks, know-how, as well as patent and patent applications are carried at historical cost (which was estimated to be their fair value on
the purchase date by the Group) less accumulated amortisation. Amortisation is calculated over their useful estimated lives from respective
acquisition dates, as follows:
• | trademarks | 10 years |
• | patents and patent applications | 3 to 10 years |
• | know-how | 1 year |
Customer relationships
Customer relationships are carried at historical cost (which was estimated to be their fair value on the acquisition date by the Group) less
accumulated amortisation. Amortisation is calculated over the estimated useful lives of the respective relationships, over periods ranging from
3.
MATERIAL ACCOUNTING POLICIES (CONTINUED)
Goodwill and intangible assets
(continued)
3.
MATERIAL ACCOUNTING POLICIES (CONTINUED)
Hybrid Software Group PLC
|
Annual Report
2025
116
117
Notes to the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Computer software technology is capitalised on the basis of the costs directly incurred to acquire and bring to use the specific software. These
costs are amortised over their estimated useful lives from respective acquisition dates over periods ranging from three to twelve years. Costs
associated with maintaining existing computer software technology and programmes are recognised as an expense when incurred.
Driver electronics
Driver electronics technology is capitalised on the basis of the costs incurred to acquire and bring to use the specific technology. These costs
are amortised over their estimated useful lives from respective acquisition dates, currently a period of five years. Costs associated with
maintaining the existing driver electronics are recognised as an expense when incurred.
Direct costs incurred on development projects relating to the design and testing of new or improved products and technology are recognised
as intangible assets when all of the following criteria are met:
•
it is technically feasible to complete the intangible asset so that it will be available for use;
•
management intends to complete the intangible asset, and use or sell it;
•
the Group has the ability to use or sell the intangible asset;
•
it can be demonstrated how the intangible asset will generate probable future economic benefits;
•
adequate technical, financial and other resources to complete the development and to use or sell the intangible asset are available;
and
•
the expenditure attributable to the intangible asset during its development may be reliably measured.
Capitalised development costs recognised as intangible assets are amortised from the point the asset is ready for use on a straight-line basis
over its estimated useful life, over periods ranging from three (Printing Software segment) to twelve (Enterprise Software segment) years.
Printing Software technology has existed for a longer period of time than Enterprise Software technology, therefore any development costs
are deemed to have a shorter useful life. The amortisation charge is included in research and development expenses in the income statement.
At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any
indication that those assets have suffered any impairment. If any such indication exists, the recoverable amount of the asset (being the higher
of fair value less costs to sell and value in use) is estimated in order to determine the extent of any impairment. Any impairment loss is
recognised as an expense in the income statement in the period in which it was identified. An impairment loss is reversed if the reversal can
Financial assets and contract assets are assessed at each reporting date to determine whether there is any objective evidence that an asset
is impaired. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when
estimating expected credit losses, the Group considers reasonable and supportable information that is relevant and available without undue
cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group’s historical experience and informed
credit assessment, that includes forward-looking information.
The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 90 days past due. A financial asset is
impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between the carrying amount,
The carrying amounts of the Group’s non-financial assets, other than deferred tax assets, are reviewed at each reporting date to determine
whether there is any indication of impairment. If such indication exists, then the asset’s recoverable amount is estimated.
The recoverable amount of an asset or a cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing
value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset.
For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from
continuing use that are largely independent of the cash inflows of other assets or group of assets ("cash-generating unit").
An impairment
loss is recognised if the carrying amount of an asset or a cash-generating unit exceeds its estimated recoverable amount. Impairment losses
recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to cash-generating
units and then, to reduce the carrying amount of the other assets in the unit on a pro rata basis. An impairment loss in respect of goodwill is
not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications
that the loss had decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine
the recoverable amount, but only to the extent that the carrying amount of the asset does not exceed the carrying amount that would have
Inventories are stated at the lower of cost and net realisable value. The cost of inventories is based on the standard costing principle, and
includes expenditures incurred in acquiring the inventories and other costs incurred in bringing them to their existing location and condition.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs expected to be incurred to complete
Trade receivables are recognised initially at fair value and subsequently held at amortised cost using the effective interest rate method, less
provision for impairment. Trade receivables are first assessed individually for impairment, or collectively where the receivables are not
individually significant. Where there is no objective evidence of impairment for an individual receivable, it is included in a group of receivables
with similar credit risk characteristics and these are collectively assessed for impairment. Movements in the provision for doubtful debts are
Ordinary shares
Ordinary shares, which are the only class of shares issued by the Company, are classified as equity. Incremental costs directly attributable to
the issue of new ordinary shares (whether they are resulting from the exercise of share options or the acquisition of a business) are recognised
as a deduction from equity, net of any tax effects.
When share capital recognised in equity is re-purchased, the consideration paid, including directly attributable costs, net of any tax effects, is
recognised as a deduction from equity. When treasury shares are sold or reissued subsequently, the amount received is recognised as an
increase in equity. Any resulting surplus over the purchase price is transferred to share premium and any deficit is transferred to retained
Trade payables and accrued liabilities are recognised initially at fair value and are subsequently measured at amortised cost, using the
effective interest method. Trade payables and accrued liabilities with a short duration are not discounted, as the carrying amount is a
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably,
and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the
liability.
Estimates of dilapidation costs are calculated in accordance with the specific remediation requirements stipulated in each lease contract. At
Revenue recognition
(continued)
Software (continued)
Notes to the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
3.
MATERIAL ACCOUNTING POLICIES (CONTINUED)
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
3.
MATERIAL ACCOUNTING POLICIES (CONTINUED)
Hybrid Software Group PLC
|
Annual Report
2025
118
119
Pension obligations
Contributions to the Group’s defined contribution pension schemes and employees’ personal pension plans are charged to the income
statement as employee benefit expenses when they are due. The Group has no further payment obligation once the contributions have been
paid.
Termination benefits are recognised as an expense when the Group is demonstrably committed, without realistic possibility of withdrawal, to
a formal, detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an
offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognised as an expense if the Group
has made an offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be measured
Other short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A
liability is recognised for the amount to be paid under short-term cash bonus or commission plans if the Group has a present legal or
Software
The Group typically licenses its software to equipment manufacturers through multi-year license and distribution agreements, or direct to end
users by a mix of perpetual and subscription-based licences.
Multi-year license and distribution agreements generally provide for the periodic payment of licence royalties, the unit value of which has been
contractually agreed at the outset of the agreement, and which is typically based upon either the volume sold by the customer or the sale
value of those products into which the Group’s software has been integrated. These agreements also include specific provisions with respect
to the delivery of maintenance and after-sale support services over the duration of the agreement. Such services are rendered against the
payment of a fixed fee, which has been contractually agreed at the outset of the agreement and is typically charged on the anniversary date
of the agreement. These agreements may also provide for the delivery of engineering services to ensure a seamless integration of the Group’s
software into the customer’s products.
End user licences are typically accompanied by annual support and maintenance agreements, which are usually renewed annually by
customers. The annual support and maintenance agreements provide technical support and bug fixes.
Fees from arrangements involving licences, after-sale customer support, and other related services such as training, are allocated to the
performance obligations identified in the contract. The stand-alone selling price of each of the elements of the arrangement is typically
established by the contract or the price charged when the same element is sold separately. Where there is no stand-alone selling price, a
percentage estimation of the total licence value is performed to identify the stand-alone price.
The Group’s performance obligations under software contracts with customers are to deliver a distribution licence, deliver a master copy of
the software, at times provide licence keys to enable the use of software and to provide ongoing support and maintenance services. The
Group also provides engineering and consulting services under some contracts to enhance functionality or assist with integration.
Revenues from software licences or non-refundable minimum royalty agreements are recognised upon satisfaction of all the following criteria:
•
signing of the license agreement
•
no additional significant production, modification or customisation of the software is required
•
performance obligations are complete
•
the fee is fixed or determinable
Fees from perpetual licences relating to software are recognised in the period in which the delivery to the end-customer takes place and based
on customer-usage reports, at which point there is no further performance obligation of the Group. Revenue from time-limited licences to use
the software is recognised rateably over the period of the licence only if there is an ongoing performance obligation for that licence on the
Group during the licence period. If there are no ongoing performance obligations, the licence revenue is recognised when the Group's
performance obligation to deliver the software has been fulfilled. All licence fees are non-refundable.
Software support and maintenance revenue is recognised over the duration of the support and maintenance period. Engineering and
consultancy services revenue is recognised upon satisfaction of the relevant performance obligation where the customer substantially obtains
the benefit of the engineering or consultancy work and usually makes a payment for those services rendered. Amounts received in advance
of the related services being performed are included in deferred revenue and recognised in revenue based on hours delivered only when the
services are provided.
Fees are non-refundable and are generally on payment terms of 30 days from date of invoice. For long-term engineering services, payments
will be due on the achievement of the performance obligation. License agreements may have extended payment terms and support and
maintenance is payable in advance of the period of coverage.
Physical goods
The Group’s performance obligations with respect to physical goods (principally the Printhead solutions segment) is to deliver a finished
product to a customer. Control of the goods transfers to the customer at the point of despatch and revenue is recognised at that point in time.
Payment for physical goods is generally received in advance of despatch and is non-refundable. If any item is found to be faulty it will either
be returned by the customer for repair or replaced with a new item.
Contract assets and contract liabilities
Contract assets and liabilities will arise from scheduled payments specified in the contracts when measured against the recognition of revenue
Cost of sales includes the costs of goods sold and services rendered. This includes finished goods, product packaging, royalties paid to third
parties, excess and obsolete inventory, amortisation of patents acquired through acquisition, amortisation of purchased software, and
Tax expense comprises current and deferred tax. Current tax is recognised in profit or loss except to the extent that it relates to items
recognised directly in equity or in other comprehensive income. Current tax is the expected tax payable on the taxable income for the year,
using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous tax years.
liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for taxable temporary
differences arising on the initial recognition of goodwill, the initial recognition of assets or liabilities that affect neither accounting nor taxable
profit, or differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. Deferred
tax is measured at the tax rates that are expected to apply to temporary differences when they reverse, based on the laws that have been
enacted or substantively enacted by the reporting date. A deferred tax asset is recognised only to the extent that it is probable that future
taxable profits will be available against which the asset can be utilised. Deferred tax assets are reviewed at each reporting date and are
reduced to the extent that it is no longer probable that the related tax benefit will be realised. Deferred tax assets and liabilities are offset if
there is a legally enforceable right to offset current tax liabilities and assets, they relate to income taxes levied by the same tax authority on
The Group presents basic and diluted earnings per share ("EPS") data for its ordinary shares. Basic EPS is calculated by dividing the profit
or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the
reporting period. Diluted EPS is determined by adjusting the weighted average number of ordinary shares outstanding for the effects of all
Government grants are recognised where there is reasonable assurance that the grant will be received, and all attached conditions will be
complied with. All such grants relate to expense items. The grant is recognised as other income on a systematic basis over the periods that
the related costs, for which it is intended to compensate, are expensed. The grant income is disclosed in Other Income in the Consolidated
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The
Notes to the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
3.
MATERIAL ACCOUNTING POLICIES (CONTINUED)
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
5.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)
Estimates
(continued)
Hybrid Software Group PLC
|
Annual Report
2025
120
121
For the purposes of the preparation of these consolidated financial statements, the Group has applied all standards and interpretations that
are effective for accounting periods beginning on or after 1 January 2025.
New standards which were not adopted by the Group in 2025
A number of new standards and amendments to standards are effective for annual periods beginning on or after 1 January 2026 and earlier
application is permitted; however, the Group has not early adopted the following new or amended standards in preparing these consolidated
financial statements for the year ended 31 December 2025 and they are not expected to have a significant impact on the Group’s consolidated
financial statements:
•
Lack of Exchangeability – Amendments to IAS 21
The Effects of Changes in Foreign Exchange Rates
•
IFRS S1 General
•
DETERMINATION OF FAIR VALUES
Several of the Group’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets
and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. Where
applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.
Other intangible assets
The fair value of other intangible assets which were acquired in business combinations is based on either the discounted cash flows expected
to be derived from the use of these intangible assets, or the average of the discounted cash flows and the total replacement cost of these
intangible assets.
Non-derivative financial instruments
The carrying values less impairment provision of trade and other receivables, current tax assets, other current assets, cash, trade payables,
current tax liabilities, accrued liabilities, are assumed to approximate their fair values at each of the balance sheet dates presented herein.
Share-based payments
The fair value of share options which are granted are valued by using a Black-Scholes valuation model. Measurement inputs include the share
price on the measurement date, the exercise price of the share option, the expected volatility, the weighted average expected life of the option,
the expected absence of dividends, and a risk-free interest rate (based on government bonds). Service and non-market performance
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of financial information in conformity with IFRS requires the Directors to make critical accounting estimates and judgements
that affect the application of policies and reported amounts of assets and liabilities, income and expenses. An assessment of the impact of
these estimates and judgements on the financial statements is set out below.
Estimates and judgements are continually evaluated and based on historical experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances. Actual results could differ from these estimates and any subsequent
changes are accounted for with an effect on income at the time such updated information is available.
Estimates
Identification and valuation of separately identifiable intangibles related to acquisitions (see note 15)
Where a business combination is considered significant, the Group commissions and relies upon independent valuation reports to identify
and value the intangible assets related to that acquisition. For less significant business combinations, internal estimates to calculate a discount
rate are determined by the Directors to apply a consistent approach with previous acquisitions.
In 2025 the Group acquired 100% of the share capital of two Belgian limited liability companies, Hybrid Software Brandz NV in August and
Conics BV in September. In neither case a third party has been engaged to perform an independent valuation report to identify and value the
intangible assets of the acquired company.
Assessing whether goodwill and acquisition-related intangibles have been impaired (see note 15 and 16)
The Group tests annually whether the goodwill has been impaired and assesses acquisition-related intangible assets for indicators of
impairment by reference to expected future generation of cash from the relevant intangible assets. In estimating the cash flow, the Directors
make estimates, based on forecasts, about the amount of future profits from the relevant products that will be generated and the timing of
when these will be realised. See Note 16 ‘Goodwill’ for further details.
Deferred tax recognition (see note 18)
Deferred tax assets are reviewed at each reporting date and are recognised only to the extent that it is probable that future taxable profits will
be available against which the asset can be utilised. The Directors make estimates about future sales and expenses, and the timing of their
realisation, to derive an estimate of the future profits. The Directors have recognised an amount that they expect to recover in the foreseeable
future of €2.73 million (2024: €2.90 million) and if there was a reduction in this period by 2 years the impact would be to reduce the asset by
€0.7 million (2024: €1.20 million). See Note 18 ‘Tax’ for further details.
Provisions for obsolete inventory (see note 19)
Inventory items are reviewed at each reporting date for possible obsolescence. Estimates are made in respect of the future demand and net
realisable value of items that are deemed to be slow moving. The estimates of demand are based on a variety of factors, including the number
of customers for that have purchased that item and historical transactions. As at 31 December the total gross inventory balance is €3,133,000
(2024: €3,818,000) and the provision against slow moving and obsolete inventory is €522,000 (2024: €370,000).
Judgements
Assessing whether development costs meet the criteria for capitalisation (see note 15)
The point at which development costs meet the criteria for capitalisation is critically dependent on management’s judgement of the point at
which technical feasibility is demonstrable, that the asset will probably generate future economic benefit, the intention to complete the asset
and that the expenditure can be reliably measured.
Furthermore, the useful economic lives of capitalised development costs are based on management’s knowledge of the life cycle of the
Group’s products and technology.
The carrying value of development assets also depends on management’s ability to demonstrate the future economic benefits they will deliver.
This judgement requires assumptions about factors outside the business’s control such as medium-term economic conditions, technological
developments, and market changes.
The Directors have made a judgement that €3,296,000 (2024: €3,451,000) has been capitalised as eligible, qualifying expenditure for the
purposes of IAS 38. There is judgement in determining whether development activity constitutes a substantial enhancement to the underlying
assets, and in quantifying the time spent on these substantial enhancements.
The Group utilise a timesheet tracking system to monitor the
nature of development being undertaken and the time spent on this activity.
Allocation of value to performance obligations in contracts with customers (see note 7)
The Group enters into contracts with customers, some of which include multiple performance obligations. The allocation of the transaction
price to the performance obligations is subject to management’s judgement of the performance obligations that are both explicit and implied
Identification of reportable segments
Management has determined the operating segments based on the reports reviewed by the Group’s Chief Executive Officer (“CEO”) that are
used for deciding how to allocate resources and also in assessing both operating and financial performance of each segment. The Group’s
CEO is considered as the Group’s chief operating decision maker (“CODM”).
The Group’s segments are:
•
Enterprise Software, for enterprise workflow software used primarily for the production of labels & packaging;
•
Printhead Solutions, for electronics and software developed for industrial inkjet printing;
•
Printing Software, for digital printing and colour management software; and
•
Group, for group related expenses that are not allocated to another segment.
Measurement of the operating segments’ profit is assessed against revenue forecasts and expense budgets, excluding non-operating IFRS
items such as the amortisation of intangible assets acquired through acquisition.
The following tables provide information on revenue, operating profit, interest, depreciation and amortisation and tax as reported to the CODM
for each of the Group’s operating segments for the years ended 31 December 2024 and 31 December 2025. The Group has disclosed these
amounts for each reportable segment because they are regularly provided to the CODM or are required to be disclosed by IFRS 8. Assets
and liabilities by segment are not regularly reported to the CODM, hence are not disclosed within this note.
Notes to the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
6. OPERATING SEGMENTS (CONTINUED)
Identification of reportable segments
(continued)
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Hybrid Software Group PLC
|
Annual Report
2025
122
123
Inter-segment revenues are included in cost of sales for the reciprocal segment and are eliminated on consolidation. Unallocated amounts
relate to expenses incurred by the Group’s parent company (HYBRID Software Group PLC) and exchange gains and losses that are not
attributable to a particular operating segment.
Segment EBITDA (a non-IFRS reporting measure) is calculated by adding back interest, depreciation, amortisation and tax to segment
operating profit/(loss) after tax.
The operating segments are unchanged from the previous year.
Year ended 31 December 2025:
Printing |
Printhead |
Enterprise |
|||
In thousands of euros |
Software |
Solutions |
Software |
Group |
Total |
Revenue from external customers |
14,318 |
12,173 |
27,881 |
- |
54,372 |
Inter-segment revenue |
445 |
12 |
336 |
- |
793 |
Segment revenue |
14,763 |
12,185 |
28,217 |
- |
55,165 |
Segment operating profit / (loss) after tax |
1,549 |
1,763 |
4,998 |
(182) |
8,128 |
Included in the operating profit / (loss) after tax are: |
|||||
Interest income |
81 |
53 |
308 |
90 |
532 |
Interest expense |
(42) |
(18) |
(196) |
(79) |
(335) |
Depreciation and amortisation |
(2,357) |
(786) |
(1,047) |
- |
(4,190) |
Tax credit / (charge) |
144 |
14 |
(686) |
- |
(528) |
Segment EBITDA |
3,723 |
2,500 |
6,619 |
(193) |
12,649 |
Year ended 31 December 2024:
Printing |
Printhead |
Enterprise |
|||
In thousands of euros |
Software |
Solutions |
Software |
Group |
Total |
Revenue from external customers |
16,666 |
11,593 |
23,242 |
- |
51,501 |
Inter-segment revenue |
418 |
- |
381 |
- |
799 |
Segment revenue |
17,084 |
11,593 |
23,623 |
- |
52,300 |
Segment operating profit / (loss) after tax |
4,336 |
1,176 |
3,441 |
(1,446) |
7,507 |
Included in the operating profit / (loss) after tax are: |
|||||
Interest income |
114 |
53 |
37 |
28 |
232 |
Interest expense |
(302) |
(25) |
(101) |
(65) |
(493) |
Depreciation and amortisation |
(2,572) |
(798) |
(990) |
- |
(4,360) |
Tax credit / (charge) |
282 |
- |
(143) |
- |
139 |
Segment EBITDA |
6,814 |
1,946 |
4,638 |
(1,409) |
11,989 |
Reconciliation of reportable segments’ operating profit after tax to consolidated profit after tax:
In thousands of euros |
2025 |
2024 |
Segment total operating profit after tax |
8,128 |
7,507 |
Impairment of goodwill |
- |
(6,280) |
Amortisation of acquired intangible assets |
(4,301) |
(4,569) |
Tax effect of above-mentioned items |
410 |
514 |
Consolidated profit / (loss) after tax |
4,237 |
(2,828) |
Printing Software segment
The segment licenses its software directly to end users as a standalone software licence and directly to equipment manufacturers through
multi-year license and distribution agreements, some of which provide for the periodic payment of license royalties, the unit value of which
has been contractually agreed at the outset of the agreement, and which is typically based upon either the volume sold by the customer or
the sale value of those products into which the Group’s software has been integrated. These multi-year agreements also include specific
provisions with respect to the delivery of maintenance and after-sale support services over the duration of the agreement. Such services are
rendered against the payment of a fixed fee, which has been contractually agreed at the outset of the agreement and is typically charged on
the anniversary date of the agreement. These agreements may also provide for the delivery of engineering services to ensure a seamless
integration of the Group’s software into the customer’s products.
Printhead Solutions segment
Driver electronics and accompanying software are initially sold as a development kit to a new customer. Once the customer has completed
their design process and their product is put into production, they will typically issue a purchase order for a quantity of products and will draw-
down from that order as they require the inventory.
Enterprise Software segment
Enterprise workflow software is licensed primarily to end users by way of a perpetual software licence. Accompanying training and
implementation services are often sold with the licences and customers increasingly purchase ongoing after-sale support services. Training
and implementation services are rendered against the payment of a fixed fee, which has been contractually agreed in advance.
On-going
support and maintenance agreements are annual agreements that renew automatically unless cancelled by the customer within the terms of
the cancellation provisions.
An analysis of external revenue by revenue type, primary geographical market and timing of recognition is shown below. The table also
provides a reconciliation of disaggregated revenue with the Group’s reportable segments.
Printhead | Enterprise | |||||||
Printing Software | Solutions | Software | Total | |||||
In thousands of euros | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
Revenue type | ||||||||
Licence royalties | 10,934 | 13,349 | 888 | 899 | 11,956 | 9,412 | 23,778 | 23,660 |
Maintenance and after-sale support | 1,990 | 1,945 | 113 | 61 | 10,503 | 9,237 | 12,606 | 11,243 |
Services | 469 | 453 | 509 | 276 | 5,198 | 4,479 | 6,176 | 5,208 |
Printer hardware and consumables | 794 | 893 | 127 | 126 | 27 | 51 | 948 | 1,070 |
Driver electronics | - | - | 10,497 | 10,204 | - | - | 10,497 | 10,204 |
Other items | 131 | 26 | 39 | 27 | 197 | 63 | 367 | 116 |
Total revenue | 14,318 | 16,666 | 12,173 | 11,593 | 27,881 | 23,242 | 54,372 | 51,501 |
Primary geographical markets | ||||||||
United Kingdom | 247 | 330 | 774 | 304 | 1,974 | 1,483 | 2,995 | 2,117 |
Europe, excluding United Kingdom | 3,526 | 2,268 | 3,434 | 2,408 | 14,769 | 11,765 | 21,729 | 16,441 |
North & South America | 6,709 | 5,671 | 2,399 | 2,583 | 8,879 | 8,550 | 17,987 | 16,804 |
Asia | 3,836 | 8,397 | 5,566 | 6,298 | 2,259 | 1,444 | 11,661 | 16,139 |
Total revenue | 14,318 | 16,666 | 12,173 | 11,593 | 27,881 | 23,242 | 54,372 | 51,501 |
Timing of revenue recognition | ||||||||
Recognised at a point in time | 12,320 | 14,720 | 12,060 | 11,532 | 14,077 | 11,801 | 38,457 | 38,053 |
Recognised over time | 1,998 | 1,946 | 113 | 61 | 13,804 | 11,441 | 15,915 | 13,448 |
Total revenue | 14,318 | 16,666 | 12,173 | 11,593 | 27,881 | 23,242 | 54,372 | 51,501 |
Revenue recognised over time is for performance obligations that are performed over time and include maintenance and after-sale support,
some services and some licence royalties that are not perpetual licences.
All other revenue is recognised as a point in time.
Notes to the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
7. REVENUE (CONTINUED)
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Hybrid Software Group PLC
|
Annual Report
2025
124
125
represented 17.9% (2024: 22.0%) of the Group’s revenue and the single largest customer represented 4.2% (2024: 6.5%) of the Group’s
Within the North & South America geographical market, €18.70 million of revenue was generated in the United States of America (2024:
€15.38 million).
The following table shows revenue expected to be recognised in the future related to performance obligations that are unsatisfied (or partially
unsatisfied) as at 31 December 2025.
In thousands of euros |
next 12 months |
12-24 months |
after 24 months |
Total |
After-sale support |
2,526 |
267 |
173 |
2,966 |
Products and services |
1,875 |
2 |
0 |
1,877 |
Total |
4,401 |
269 |
173 |
4,843 |
The Group applies the practical expedient in paragraph 63 of IFRS 15 and does not adjust the promised amount of consideration for the
effects of a significant financing component for contracts where payments are due within one year.
Contract balances
The following table provides information about receivables, contract assets and contract liabilities from contracts with customers.
In thousands of euros |
2025 |
2024 |
Trade receivables (see note 20) |
8,080 |
6,045 |
Contract assets |
9,025 |
10,015 |
Contract liabilities (see note 27) |
(4,843) |
(3,854) |
Under some licensing arrangements, the Group recognises revenue at the commencement of the contract and payments become due during
the term of the agreement.
The movement in the Group’s provision for impairment of trade receivables and accrued revenue was a decrease of €77,000 (2024: a decrease
of €137,000).
Revenue recognised in the year that was included in the contract liability balance at the beginning of the year was €1.26 million (2024: €1.60
OTHER OPERATING EXPENSES
Other operating expenses incurred during the year were:
In thousands of euros |
2025 |
2024 |
Loss on disposal of tangible fixed assets |
1 |
70 |
Other operating expenses |
4 |
- |
Total other operating expenses |
5 |
70 |
In thousands of euros |
2025 |
2024 |
Gain on disposal of tangible fixed assets |
16 |
28 |
Government grants |
335 |
23 |
Other income |
323 |
99 |
Total other income |
674 |
150 |
In thousands of euros |
2025 |
2024 |
Employee benefit expense |
28,093 |
26,426 |
Depreciation of property, plant & equipment (see note 14) |
556 |
687 |
Depreciation of right-of-use assets (see note 24) |
776 |
740 |
Impairment of goodwill (see note 16) |
- |
6,280 |
Capitalisation of R&D expenses (see note 15) |
(3,296) |
(3,451) |
Amortisation of intangible assets (see note 15) |
7,148 |
7,492 |
Auditor’s remuneration |
342 |
387 |
Other operating expenses, net of other operating income |
8,496 |
8,032 |
Total operating expenses, net of other operating income |
42,115 |
46,593 |
The aggregate amount of remuneration (all salary, fees and bonuses, sums paid by way of expense allowance and money value of other non-
cash benefits) paid or receivable by the five Directors for the year was €1,460,000 (2024: €1,296,000).
The aggregate value of gains made by Directors during the year on the exercise of share options was €nil (2024: €nil).
The Group only operates defined contribution pension schemes for the Directors. During the year, for two Directors (2024: two), €10,000
(2024: €11,000) of pension contributions were paid.
The average number of people, including executive Directors, employed by the Group during the year was:
2025 |
2024 |
|
By activity |
||
Research and development |
88 |
93 |
Sales, maintenance and support |
157 |
142 |
General and administrative |
40 |
36 |
Total average number of people employed |
285 |
271 |
In thousands of euros |
2025 |
2024 |
Wages and salaries |
25,020 |
23,606 |
Social security contributions |
2,983 |
2,758 |
Medical insurance contributions |
399 |
423 |
Pension contributions to defined contribution plans |
834 |
771 |
Other employee related expenses |
785 |
777 |
Total employee benefit expenses |
30,021 |
28,335 |
Of the total employee benefit expenses, €1,928,000 (2024: €1,909,000) was recognised in cost of sales and €28,093,000 (2024: €26,426,000)
Notes to the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Hybrid Software Group PLC
|
Annual Report
2025
126
127
In thousands of euros |
2025 |
2024 |
Interest income |
183 |
127 |
Finance income on net investment in leases |
24 |
25 |
Total interest income |
207 |
152 |
Other financial income |
325 |
80 |
Total finance income |
532 |
232 |
Interest expense |
(5) |
(1) |
Interest expense on loan from related undertaking (see note 32) |
(141) |
(207) |
Interest on lease liabilities (see note 24) |
(93) |
(120) |
Remeasurement of deferred consideration on ColorLogic GmbH acquisition |
(87) |
(65) |
Other financial charges |
(9) |
(100) |
Total finance expenses |
(335) |
(493) |
Net finance income / (expenses) |
197 |
(261) |
Leasehold |
Computer |
Office |
|||
In thousands of euros |
improvements |
equipment |
equipment |
Motor vehicles |
Total |
Cost |
|||||
At 31 December 2023 |
1,040 |
3,041 |
790 |
1,038 |
5,909 |
Additions |
- |
222 |
1 |
306 |
529 |
Transfers |
- |
17 |
(17) |
- |
- |
Disposals |
(19) |
(795) |
(50) |
(86) |
(950) |
Effect of movement in exchange rates |
42 |
146 |
25 |
9 |
222 |
At 31 December 2024 |
1,063 |
2,631 |
749 |
1,267 |
5,710 |
Additions |
- |
499 |
13 |
122 |
634 |
Additions from acquisitions (see note 36) |
- |
39 |
17 |
280 |
336 |
Transfers |
5 |
192 |
(197) |
- |
- |
Disposals |
- |
(48) |
(15) |
(45) |
(108) |
Effect of movement in exchange rates |
(48) |
(471) |
(21) |
(15) |
(555) |
At 31 December 2025 |
1,020 |
2,842 |
546 |
1,609 |
6,017 |
Depreciation |
|||||
At 31 December 2023 |
905 |
2,647 |
549 |
261 |
4,362 |
Charge for the year |
52 |
331 |
65 |
239 |
687 |
Transfers |
- |
7 |
(7) |
- |
- |
Disposals |
(19) |
(786) |
(50) |
(16) |
(871) |
Effect of movement in exchange rates |
41 |
141 |
21 |
5 |
208 |
At 31 December 2024 |
979 |
2,340 |
578 |
489 |
4,386 |
Charge for the year |
26 |
243 |
27 |
260 |
556 |
Additions from acquisitions (see note 36) |
- |
27 |
8 |
104 |
139 |
Transfers |
4 |
156 |
(160) |
- |
- |
Disposals |
- |
(43) |
(15) |
(25) |
(83) |
Effect of movement in exchange rates |
(47) |
(129) |
(21) |
(19) |
(216) |
At 31 December 2025 |
962 |
2,594 |
417 |
809 |
4,782 |
Net book value |
|||||
At 31 December 2024 |
84 |
291 |
171 |
778 |
1,324 |
At 31 December 2025 |
58 |
248 |
129 |
800 |
1,235 |
Customer |
|||||||
Software |
relation- |
Trade- |
Driver |
||||
In thousands of euros |
technology |
ships |
Patents |
marks |
Know-how |
electronics |
Total |
Cost |
|||||||
At 31 December 2023 |
91,018 |
21,038 |
2,789 |
598 |
1,401 |
4,746 |
121,590 |
Additions – internally developed |
2,820 |
- |
- |
- |
- |
631 |
3,451 |
Effect of movement in exchange rates |
2,361 |
663 |
128 |
28 |
42 |
233 |
3,455 |
At 31 December 2024 |
96,199 |
21,701 |
2,917 |
626 |
1,443 |
5,610 |
128,496 |
Additions – internally developed |
2,527 |
- |
- |
- |
- |
769 |
3,296 |
Additions from acquisitions (see note 36) |
397 |
362 |
- |
- |
480 |
- |
1,239 |
Disposals |
(20,823) |
(14,667) |
(5) |
(626) |
(289) |
- |
(36,410) |
Effect of movement in exchange rates |
(1,885) |
(31) |
(142) |
- |
(55) |
(289) |
(2,402) |
At 31 December 2025 |
76,415 |
7,365 |
2,770 |
- |
1,579 |
6,090 |
94,219 |
At 31 December 2023 |
55,831 |
16,666 |
2,677 |
598 |
1,401 |
3,810 |
80,983 |
Charge for the year |
6,091 |
889 |
11 |
- |
- |
511 |
7,502 |
Effect of movement in exchange rates |
2,218 |
661 |
124 |
28 |
42 |
186 |
3,259 |
At 31 December 2024 |
64,140 |
18,216 |
2,812 |
626 |
1,443 |
4,507 |
91,744 |
Charge for the year |
5,561 |
852 |
10 |
- |
138 |
596 |
7,157 |
Disposals |
(20,823) |
(14,667) |
(5) |
(626) |
(289) |
- |
(36,410) |
Effect of movement in exchange rates |
(1,732) |
(30) |
(138) |
- |
(55) |
(231) |
(2,186) |
At 31 December 2025 |
47,146 |
4,371 |
2,679 |
- |
1,237 |
4,872 |
60,305 |
Net book value |
|||||||
At 31 December 2024 |
32,059 |
3,485 |
105 |
- |
- |
1,103 |
36,752 |
At 31 December 2025 |
29,269 |
2,994 |
91 |
- |
342 |
1,218 |
33,914 |
The amortisation of patents is included in cost of sales, the amortisation charge for software technology and driver electronics is included in
research and development expenses, and amortisation charges related to any other intangible assets acquired through business combinations
are included in selling, general and administrative expenses.
The amortisation charge is recognised in the following line items in the consolidated statement of comprehensive income:
In thousands of euros |
2025 |
2024 |
Cost of sales |
10 |
10 |
Selling, general and administrative expenses |
991 |
889 |
Research and development expenses |
6,157 |
6,603 |
Total amortisation charge |
7,158 |
7,502 |
Intangible assets that are subject to amortisation are reviewed annually for indicators of impairment or whenever events or changes in
accounting estimates indicate that the carrying amount may not be recoverable. If an indicator of impairment is identified, a full impairment
review is performed with the calculations being based on the discounted cash flows over the remaining period of amortisation of the capitalised
development expense and use the same discount rate and exchange rates that were used for the impairment review of Goodwill (see Note
16 ‘Goodwill’). These intangible assets are also allocated to a CGU containing goodwill and are tested annually for impairment as part of the
goodwill impairment review (see Note 16 ‘Goodwill’).
Notes to the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
15. OTHER INTANGIBLE ASSETS (CONTINUED)
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
16. GOODWILL (CONTINUED)
Hybrid Software Group PLC
|
Annual Report
2025
128
129
There was no significant change during the year to the indicators that were used at 31 December 2024 to identify the requirement to impair
any of these intangible assets. It was concluded that no impairment was required hence the Directors’ have assessed that full recoverability
is expected for all other intangible assets for the year ended 31 December 2025 (2024: €nil).
For individual intangible assets material to the financial statements, the following table shows the remaining amortisation periods and the
carrying amounts:
In thousands of euros |
Remaining amortisation period |
2025 |
2024 |
Artflow |
4.6 years |
364 |
- |
Cloudflow |
7 to 11.5 years |
13,968 |
15,243 |
ColorLogic |
0.3 to 4.8 years |
1,830 |
2,148 |
EDL |
0.3 to 2.7 years |
219 |
196 |
Harlequin RIP |
0.2 to 2.8 years |
1,196 |
1,654 |
iC3D |
6.25 to 9.5 years |
1,232 |
1,258 |
Other software |
0 to 4 years |
65 |
86 |
Packz |
7 to 11.5 years |
9,883 |
10,877 |
Xitron |
0.2 to 2.8 years |
512 |
597 |
Total software technology |
29,269 |
32,059 |
|
Customer relationships |
1.5 to 6.3 years |
2,994 |
3,485 |
Patents |
8.9 years |
91 |
105 |
Know-how |
0.9 year |
342 |
- |
Driver electronics |
0.2 to 4.8 years |
1,218 |
1,103 |
Cash generating units [‘CGU’]
The cash generating units can be described as follows:
Hybrid Software Helix (formerly GGS) CGU [‘HLX’], part of Printing Software segment
Provides award-winning digital front end, core SDKs and technologies to Print OEMs and Independent Software Vendors.
Meteor Inkjet CGU [‘MET’] ], part of Printhead Solutions segment
Leading independent supplier of industrial inkjet electronics, software, tools and services to industrial inkjet OEM’s.
Xitron CGU [‘XIT’] ], part of Printing Software segment
Xitron provides Harlequin based RIP’s to drive almost every output device in the market.
Hybrid Software Labels & Packaging [‘L&P’] ], part of Enterprise Software segment
Provides leading native PDF prepress editing software and workflow software to labels & packaging OEM’s, premedia service agencies and
labels and packaging converters.
Hybrid Software Brandz CGU [‘Brandz’] ], part of Enterprise Software segment
Provides artwork management software and 3D rendering software solutions to brand owners. This CGU has been formed in 2024 as a
consequence of setting up dedicated business unit within Hybrid Software oriented at brand owners.
ColorLogic CGU [‘Color’] ], part of Printing Software segment
Provides color measurement, color profiling and color management solutions to Print OEMs and Independent Software Vendors.
Conics CGU [‘Conics’] ], part of Enterprise Software segment
Provides software consultancy services focusing on graphic processes.
Carrying amounts of goodwill
The carrying amount of goodwill per CGU is summarised below:
In thousands of euros |
HLX |
MET |
XIT |
L&P |
Brandz |
Color |
Conics |
Total |
Cost |
||||||||
At 31 December 2023 |
12,589 |
2,238 |
1,793 |
51,110 |
- |
1,202 |
- |
68,932 |
Transfers |
- |
- |
- |
(1,578) |
1,578 |
- |
- |
- |
| Effect of movement in |
702 |
103 |
109 |
- |
- |
- |
- |
914 |
exchange rates |
||||||||
At 31 December 2024 |
13,291 |
2,341 |
1,902 |
49,532 |
1,578 |
1,202 |
- |
69,846 |
| Additions from acquisitions (see |
- |
- |
- |
- |
- |
- |
581 |
581 |
note 36) |
||||||||
| Effect of movement in |
(655) |
(114) |
(215) |
- |
- |
- |
- |
(984) |
exchange rates |
||||||||
At 31 December 2025 |
12,636 |
2,227 |
1,687 |
49,532 |
1,578 |
1,202 |
581 |
69,443 |
Amortisation or impairment |
||||||||
At 31 December 2023 |
5,805 |
- |
- |
- |
- |
- |
- |
5,805 |
Impairment |
- |
- |
- |
4,750 |
910 |
620 |
- |
6,280 |
| Effect of movement in |
329 |
- |
- |
- |
- |
- |
- |
329 |
exchange rates |
||||||||
At 31 December 2024 |
6,134 |
- |
- |
4,750 |
910 |
620 |
- |
12,414 |
| Effect of movement in |
(301) |
- |
- |
- |
- |
- |
- |
(301) |
exchange rates |
||||||||
At 31 December 2025 |
5,833 |
- |
- |
4,750 |
910 |
620 |
- |
12,113 |
Net book value |
||||||||
At 31 December 2024 |
7,157 |
2,341 |
1,902 |
44,782 |
668 |
582 |
- |
57,432 |
At 31 December 2025 |
6,803 |
2,227 |
1,687 |
44,782 |
668 |
582 |
581 |
57,330 |
Weighted cost of capital
The applied weighted cost of capital (“WACC”) 2025 and 2024 are:
In thousands of euros |
HLX |
MET |
XIT |
L&P |
Brandz |
Color |
Conics |
WACC 2024 pre tax |
17.82% |
17.93% |
17.18% |
10.30% |
10.30% |
17.74% |
- |
WACC 2025 pre tax |
17.63% |
17.56% |
17.29% |
10.86% |
10.86% |
18.16% |
16.92% |
In general, it is noted that the WACC has been on an downward trend, given that interest rates have decreased over the past year and this
has a direct impact on risk premiums.
The L&P and Brandz CGU’s enjoy a significantly lower discount rate than the other group CGU’s due to the following elements: (I) an optimized
capital structure, and (II) a lower effective tax rate due to a preferential tax regime obtained in 2023 by the intellectual property owner of the
CGU: Hybrid Software Development NV.
Impairment testing
The Group is required to test annually whether goodwill and other intangible assets with indefinite useful lives have suffered any impairment
during the year in accordance with the policy set out in Note 3 ‘Material accounting policies’.
The recoverable amounts of the CGUs are assessed using a value-in-use model. The value-in-use is calculated using a discounted cash
flow approach, discounted with a pretax discount rate applied to the projected pre-tax cash flows and terminal value.
The current exercise is executed in the period December 2025 – January 2025. The plan was built, starting from the approved budget 2025,
and extended with a business plan for another 4 years per CGU specific growth expectations.
Notes to the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
16. GOODWILL (CONTINUED)
Impairment testing
(continued)
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
16. GOODWILL (CONTINUED)
Meteor Inkjet CGU (continued)
Hybrid Software Group PLC
|
Annual Report
2025
130
131
The recoverable amount of the CGUs has been determined using an estimate of their value in use as at 31 December 2025. These calculations
employed cash flow projections based on financial forecasts approved by management and the company directors covering a five-year period
ending 31 December 2030 and then into perpetuity using a terminal growth rate. The financial forecasts are most sensitive to changes in the
customer base and associated revenues and to changes in staff costs. Revenues were forecasted based on historical trends and anticipated
growth. Staffing levels were reviewed against revenue projections and an average increase in staff costs was applied to account for future
potential pay increases that could be awarded to employees.
Projected cash flows were converted into euros based on the rates used for preparing the Group’s budget for the year ending 31 December
2026. The exchange rates were determined with reference to market forecasts and were 1.1764 euros for 1 pound sterling, 0.9091 US dollars
for 1 euro, 7.7 Chinese renminbi for 1 euro and 160 Japanese yen for 1 euro.
Management considers that the use of a five-year forecast and then into perpetuity is justified because the core of the products and technology
that make up the CGUs have been generating revenue for between 10 and 25 years. The Group’s technology has evolved to meet the
changing requirements of the industries in which it operates, and it continues to do so. Combining acquisitions with the continual shift to digital
printing and manufacturers looking to differentiate their products, new opportunities continue to be created for the Group and its products.
Hybrid Software Helix CGU
Key assumptions
The following key assumptions have been adopted in the calculations:
•
The pre-tax discount rate used was 17.63% (2024: 17.82%);
•
Revenue growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual growth
rate for the next 4 years is projected at 5.12% (2024: 8.2%);
•
Gross margin was decreased to 94% over the forecasting period compared to recent actual gross margins (2024: 95%), mainly due
to an increase in intercompany sourcing of software components;
•
The staff costs growth rates used in the estimation process are consistent with the approved budget for 2025, compound annual
growth rate for the next 4 years is projected at 6.40% (2024: 7.08%); and
•
The terminal growth rate used was 2% (2024: 2%).
Results
The impairment test indicates headroom of €3,833,000.
Sensitivity
The Directors have identified that a reasonably possible change in key assumptions could cause the carrying amount to match the recoverable
amount. The following table shows the amount by which these assumptions would need to change individually for the estimated recoverable
amount to be equal to the carrying amount.
The Directors believe there were no reasonably possible changes in the other key assumptions that could cause impairment.
Change required for carrying amount to equal | ||
recoverable | ||
2025 | 2024 | |
Revenue growth rate | (419bps) | (124bps) |
Discount rate | 641bps | 642bps |
Meteor Inkjet CGU
Key assumptions
The following key assumptions have been adopted in the calculations:
•
The pre-tax discount rate used was 17.56% (2024: 17.93%);
•
Revenue growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual growth
rate for the next 4 years is projected at 7.01% (2024: 8.26%);
•
Gross margin was increased to 62% compared to recent actual gross margins of 61.61% (2024: 58%);
•
The staff costs growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual
growth rate for the next 4 years is projected at 8.76% (2024: 8.97%); and
•
The terminal growth rate used was 2% (2024: 2%).
Results
The impairment test indicates headroom of €9,608,000.
Sensitivity
The Directors believe there were no reasonably possible changes in the other key assumptions that could cause impairment.
Xitron CGU
Key assumptions
The following key assumptions have been adopted in the calculations:
•
The pre-tax discount rate used was 17.29% (2024: 17.18%);
•
Revenue growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual growth
rate for the next 4 years is projected at 5.21% (2024: 3%);
•
Gross margin was decreased to 66.60% compared to recent actual gross margins of 67.04% (2024: 65%);
•
The staff costs growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual
growth rate for the next 4 years is projected at 2.72% (2024: 3.34%); and
•
The terminal growth rate used was 2% (2024: 2%).
Results
The impairment test indicates headroom of €164,000.
Sensitivity
The Directors have identified that a reasonably possible change in key assumptions could cause the carrying amount to match the recoverable
amount. The following table shows the amount by which these assumptions would need to change individually for the estimated recoverable
amount to be equal to the carrying amount.
The Directors believe there were no reasonably possible changes in the other key assumptions that could cause impairment.
Change required for carrying amount to equal | ||
recoverable | ||
2025 | 2024 | |
Revenue growth rate | (82bps) | (195bps) |
Discount rate | 87bps | 637bps) |
Hybrid Software Labels & Packaging CGU
Key assumptions
The following key assumptions have been adopted in the calculations:
•
The pre-tax discount rate used was 10.86% (2024: 10.30%).
•
Revenue growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual growth
rate for the next 4 years is projected at 7.76% (2024: 9.26%);
•
Gross margin was reduced to 96.06% compared to recent actual gross margins (2024: 96.6%);
•
The staff costs growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual
growth rate for the next 4 years is projected at 6.54% (2024: 7.32%); and
•
The terminal growth rate used was
2.25%
(2024: 2.25%). HYBRID Software enjoys significant competitive advantages in the
markets it is active providing for above average pricing power hence the ability to grow its income more than the long term inflation
rates of the countries in which it is active.
Results
The impairment test indicates headroom of €18,529,000.
Notes to the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
16. GOODWILL (CONTINUED)
Hybrid Software Labels & Packaging CGU (continued)
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
16. GOODWILL (CONTINUED)
Hybrid Software Group PLC
|
Annual Report
2025
132
133
Sensitivity
The Directors have identified that a reasonably possible change in key assumptions could cause the carrying amount to match the recoverable
amount. The following table shows the amount by which these assumptions would need to change individually for the estimated recoverable
amount to be equal to the carrying amount.
The Directors believe there were no reasonably possible changes in the other key assumptions that could cause impairment.
Change required for carrying amount to equal |
||
recoverable |
||
2025 |
2024 |
|
Revenue growth rate |
(211bps) |
N/A* |
Discount rate |
205bps |
N/A* |
(*) Based on the impairment test conducted in 2024, the recoverable amount was considered to be lower than the carrying value, hence an
impairment charge has been taken.
Hybrid Software Brandz CGU
Key assumptions
The following key assumptions have been adopted in the calculations:
•
The pre-tax discount rate used was 10.86% (2024: 10.30%);
•
Revenue growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual growth
rate for the next 4 years is projected at 16.09% (2024: 11.10%);
•
Gross margin was reduced over forecasting period from 95.44% to 90.35%, this mainly due to increased hosting cost in function of
the forecasted growth in installed base (2024: 100%);
•
The staff costs growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual
growth rate for the next 4 years is projected at 7.81% (2024: 10.03%); and
•
The terminal growth rate used was
2% (2024: 2%)
.
Results
The impairment test indicates headroom of €934,000.
Sensitivity
The Directors have identified that a reasonably possible change in key assumptions could cause the carrying amount to match the recoverable
amount. The following table shows the amount by which these assumptions would need to change individually for the estimated recoverable
amount to be equal to the carrying amount.
The Directors believe there were no reasonably possible changes in the other key assumptions that could cause impairment.
Change required for carrying amount to equal |
||
recoverable |
||
2025 |
2024 |
|
Revenue growth rate |
(179bps) |
N/A* |
Discount rate |
245bps |
N/A* |
(*) Based on the impairment test conducted in 2024, the recoverable amount was considered to be lower than the carrying value, hence an
impairment charge has been taken.
ColorLogic CGU
Key assumptions
The following key assumptions have been adopted in the calculations:
•
The pre-tax discount rate used was 18.16% (2024: 17.74%);
•
Revenue growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual growth
rate for the next 4 years is projected at 9.97% (2024: 10.77%);
•
Gross margin was kept stable at recent actual gross margins of 99% (2024: 99%);
•
The staff costs growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual
growth rate for the next 4 years is projected at 9.75% (2024: 9.81%); and
•
The terminal growth rate used was 2% (2024: 2%).
Results
The impairment test indicates headroom of €937,000.
Sensitivity
The Directors have identified that a reasonably possible change in key assumptions could cause the carrying amount to match the recoverable
amount. The following table shows the amount by which these assumptions would need to change individually for the estimated recoverable
amount to be equal to the carrying amount.
The Directors believe there were no reasonably possible changes in the other key assumptions that could cause impairment.
Change required for carrying amount to equal |
||
recoverable |
||
2025 |
2024 |
|
Revenue growth rate |
(356bps) |
N/A* |
Discount rate |
654bps |
N/A* |
(*) Based on the impairment test conducted in 2024, the recoverable amount was considered to be lower than the carrying value, hence an
impairment charge has been taken.
Conics CGU
Key assumptions
The following key assumptions have been adopted in the calculations:
•
The pre-tax discount rate used was 16.92%
•
Revenue growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual growth
rate for the next 4 years is projected at 9.97%;
•
Gross margin was kept stable at recent actual gross margins of 97%;
•
The staff costs growth rates used in the estimation process are consistent with the approved budget for 2025, compound annual
growth rate for the next 4 years is projected at 7.57%; and
•
The terminal growth rate used was 2%.
Results
The impairment test indicates headroom of €375,000.
Sensitivity
The Directors have identified that a reasonably possible change in key assumptions could cause the carrying amount to match the recoverable
amount. The following table shows the amount by which these assumptions would need to change individually for the estimated recoverable
amount to be equal to the carrying amount.
The Directors believe there were no reasonably possible changes in the other key assumptions that could cause impairment.
Change required for carrying amount to equal | ||
recoverable | ||
2025 | 2024 | |
Revenue growth rate | (276bps) | N/A* |
Discount rate | 357bps | N/A* |
Notes to the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
18. TAX (CONTINUED)
Hybrid Software Group PLC
|
Annual Report
2025
134
135
Financial assets measured at amortised cost.
In thousands of euros |
2025 |
2024 |
Rent and other deposits |
12 |
30 |
Financial assets not classified as cash or cash equivalent |
- |
900 |
Non-current finance lease receivables (see note 24) |
68 |
90 |
Total financial assets |
80 |
1,020 |
Corporation tax
Analysis of the tax (expense) / credit in the year:
In thousands of euros |
2025 |
2024 |
Current tax |
||
Current year charge |
(381) |
(152) |
Credit related to previous periods |
19 |
237 |
Total current tax |
(362) |
85 |
Deferred tax |
||
Arising from amortisation of acquired intangibles |
389 |
486 |
Arising from the capitalisation and amortisation of development expenses |
33 |
66 |
Recognition of previously unrecognised tax losses |
(178) |
16 |
Total deferred tax |
244 |
568 |
Total tax (expense) / credit |
(118) |
653 |
The tax (expense) / credit for the year differs from that calculated by applying the standard rate of corporation tax of the Company to profit or
loss before taxation. The differences are as follows:
In thousands of euros |
2025 |
2024 |
Profit / (Loss) before tax on continuing and discontinued operations |
4,355 |
(3,481) |
Expected tax (expense) / credit at the Company's tax rate of 25% (2024: 25%) |
(1,089) |
870 |
Effect of differences in tax rates in foreign jurisdictions |
(54) |
49 |
Effect of expenses not deductible and items not taxable |
(364) |
677 |
Recognition of temporary difference previously not recognised |
1,298 |
- |
Temporary differences not recognised |
- |
(1,397) |
Effect of R&D enhanced expenditure |
- |
455 |
Effect of taxable R&D expenditure credit |
(103) |
- |
Effect of withholding tax |
16 |
(16) |
Use of temporary differences previously not recognised |
178 |
15 |
Total tax (expense) / credit recognised |
(118) |
653 |
The Group had recognised deferred tax as follows:
In thousands of euros |
2025 |
2024 |
Deferred tax assets |
||
Fixed asset temporary differences |
1,881 |
1,827 |
Unused tax losses |
844 |
1,072 |
Total recognised deferred tax assets before set-off |
2,725 |
2,899 |
Deferred tax set-off |
(1,366) |
(1,592) |
Net deferred tax assets |
1,359 |
1,307 |
Deferred tax liabilities |
||
Capitalised development expenses |
860 |
941 |
As a result of business combinations |
1,956 |
2,163 |
Total recognised deferred tax liabilities before set-off |
2,816 |
3,104 |
Deferred tax set-off |
(1,366) |
(1,592) |
Net deferred tax liabilities |
1,450 |
1,512 |
Deferred tax assets are recognised for tax losses available for carrying forward to the extent that the realisation of the related tax benefit
through future taxable profits is probable. Deferred tax is measured at the tax rates that are expected to apply to temporary differences when
they reverse, based on the laws that have been enacted or substantively enacted by the reporting date.
The deferred tax asset at 31 December 2025 has been calculated based on the rates expected to be in force at the time of utilisation. The
deferred tax liability at 31 December 2025 has been recognised as a result of acquisitions in different tax jurisdictions at the rates prevailing
in those jurisdictions. The rates range from 19% to 30%.
Deferred tax assets on trading losses of €13.23 million (2024: €17.61 million) and fixed asset temporary differences of €2.68 million (2024:
€3.94 million) have not been recognised.
The Group is in a position to control the timing of the reversal of temporary differences relating to unremitted earnings of subsidiaries, and it
is probable that such differences will not reverse in the foreseeable future, therefore no deferred tax liability has been recognised.
The movement in deferred tax is as follows:
In thousands of euros |
2025 |
2024 |
Deferred tax assets |
||
Balance as at 1 January |
2,899 |
2,841 |
Amounts (charged) / credited to profit & loss |
(178) |
16 |
Foreign currency translation differences recognised in other comprehensive income |
4 |
42 |
Total recognised deferred tax assets before set-off as at 31 December |
2,725 |
2,899 |
Deferred tax liabilities |
||
Balance as at 1 January |
3,104 |
3,609 |
Amounts credited to profit & loss |
(422) |
(552) |
Foreign currency translation differences recognised in other comprehensive income |
134 |
47 |
Total recognised deferred tax liabilities before set-off as at 31 December |
2,816 |
3,104 |
Notes to the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Hybrid Software Group PLC
|
Annual Report
2025
136
137
In thousands of euros |
2025 |
2024 |
Finished goods |
1,432 |
1,838 |
Components |
1,179 |
1,610 |
Total inventories |
2,611 |
3,448 |
In thousands of euros |
2025 |
2024 |
Trade receivables |
8,459 |
6,501 |
Allowance for doubtful debts |
(379) |
(456) |
Total trade and other receivables |
8,080 |
6,045 |
Trade receivables less than 90 days past due are not considered impaired. The ageing analysis of total trade receivables is as follows:
In thousands of euros |
2025 |
2024 |
Under 90 days |
7,445 |
5,283 |
Over 90 days and provided for |
379 |
456 |
Over 90 days but not provided for |
256 |
306 |
Total trade receivables |
8,080 |
6,045 |
Impairment losses during the year were €46,000 (2024: €nil).
Movements in the Group's provision for impairment of trade receivables are as follows:
In thousands of euros |
2025 |
2024 |
At 1 January |
456 |
593 |
Credit during the year |
(77) |
(137) |
At 31 December |
379 |
456 |
The Directors have considered the nature of the customers, the historic levels of bad debts and the payment profile of customer contracts in
reaching the value of the expected credit losses above. See Note 31 ‘Financial risk management’ for further disclosure regarding the credit
In thousands of euros |
2025 |
2024 |
VAT receivable |
269 |
283 |
Current finance lease receivables (see note 24) |
68 |
123 |
Other items |
49 |
62 |
Total other current assets |
386 |
468 |
In thousands of euros |
2025 |
2024 |
Cash at bank and in hand |
14,460 |
9,513 |
Total cash and cash equivalents |
14,460 |
9,513 |
2025 |
2024 |
|||
In thousands of euros, except number of shares |
Number |
Value |
Number |
Value |
As at 31 December |
32,909,737 |
13,164 |
32,909,737 |
13,164 |
Share premium:
In thousands of euros | 2025 | 2024 |
As at 31 December | 1,979 | 1,979 |
In thousands of euros |
2025 |
2024 |
As at 31 December |
67,015 |
67,015 |
The Company's investment in its own shares in treasury is as follows:
2025 |
2024 |
|||
In thousands of euros, except number of shares |
Number |
Value |
Number |
Value |
As at 1 January |
63,822 |
193 |
58,584 |
179 |
Disbursement of shares to employees |
(9,000) |
(32) |
(9,106) |
(40) |
Own shares re-purchased |
137,159 |
523 |
14,344 |
54 |
As at 31 December |
191,981 |
684 |
63,822 |
193 |
Group as lessee
The Group leases office facilities and motor vehicles. The office leases typically run for a period of 6 years with an option to renew the lease
at the end of the term and motor vehicle leases typically run for 3 years. Lease payments are agreed at the inception of the lease and at any
subsequent renewal.
Right-of-use assets
Land and |
Motor |
||
In thousands of euros |
buildings |
vehicles |
Total |
Balance at 31 December 2023 |
2,148 |
53 |
2,201 |
Additions |
- |
85 |
85 |
Depreciation charge for the year |
(701) |
(39) |
(740) |
Effect of movement in exchange rates |
45 |
- |
45 |
Balance at 31 December 2024 |
1,492 |
99 |
1,591 |
Additions |
115 |
- |
115 |
Remeasurements |
(393) |
- |
(393) |
Depreciation charge for the year |
(733) |
(43) |
(776) |
Effect of movement in exchange rates |
(35) |
(1) |
(36) |
Balance at 31 December 2025 |
446 |
55 |
501 |
Notes to the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
24. LEASES (CONTINUED)
Group as lessee (continued)
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
24. LEASES (CONTINUED)
Hybrid Software Group PLC
|
Annual Report
2025
138
139
These right-of-use assets are depreciated on a straight-line basis over the remaining term of the rental agreement. As at the date of these
financial statements, the remaining terms range from 1 month to 4.5 years. Remeasurements are the result of an extension to the term of an
existing lease.
Lease liabilities
In thousands of euros |
2025 |
2024 |
Current |
566 |
940 |
Non-current |
149 |
1,051 |
Total lease liabilities |
715 |
1,991 |
It is expected that as a lease matures it will either be extended or replaced by a new lease on similar terms.
There are no variable lease
payments, all lease payments are for fixed amounts agreed at the outset of the lease.
Amounts recognised in the Consolidated Statement of Comprehensive Income:
In thousands of euros |
2025 |
2024 |
Interest on lease liabilities |
93 |
120 |
Expenses relating to short-term leases |
29 |
50 |
Total recognised in profit or loss |
122 |
170 |
A short-term lease is a lease that, at the commencement date, has a lease term of 12 months or less. The Group has elected to apply the
recognition exemption under paragraph 5 of IFRS 16 and recognise the associated payments in profit or loss. The short-term leases are
leases for office space with a duration of 12 months or less.
Cash out flow for leases:
In thousands of euros |
2025 |
2024 |
Lease liability interest |
93 |
120 |
Principal payments |
1,001 |
883 |
Additions |
(102) |
(216) |
Disposals |
16 |
- |
Effect of movement in exchange rates |
- |
(56) |
Total cash outflow for leases |
1,008 |
731 |
Maturity analysis of contractual undiscounted cash flows for lease payments:
In thousands of euros |
2025 |
2024 |
Within 1 year |
620 |
1,014 |
Between 1 and 2 years |
84 |
606 |
Between 2 and 3 years |
22 |
208 |
Between 3 and 4 years |
1 |
161 |
Between 4 and 5 years |
- |
160 |
After 5 years |
- |
- |
Total undiscounted lease liabilities at 31 December |
727 |
2,149 |
Group as lessor – finance leases
The Group has cancellable leases, as intermediate lessor, of motor vehicles. The terms of these leases vary. The following amounts are
recognised in the Consolidated Statement of Comprehensive Income:
In thousands of euros |
2025 |
2024 |
Income received from subleasing right-of-use assets |
151 |
120 |
Finance income on net investment in leases |
(24) |
(25) |
Total amount recognised in profit or loss |
127 |
95 |
Future minimum lease payments receivable for motor vehicles under cancellable finance leases are set out below:
In thousands of euros |
2025 |
2024 |
Within 1 year |
110 |
138 |
Between 1 and 2 years |
53 |
80 |
Between 2 and 3 years |
22 |
17 |
Between 3 and 4 years |
1 |
2 |
Between 4 and 5 years |
- |
- |
After 5 years |
- |
- |
Total undiscounted lease payments receivable |
186 |
237 |
Unearned finance income |
(22) |
(25) |
Net investment in the lease |
164 |
232 |
In thousands of euros |
2025 |
2024 |
Current (see note 21) |
96 |
123 |
Non-current (see note 17) |
68 |
90 |
Total finance lease receivable |
164 |
213 |
Financial liabilities measured at fair value.
In thousands of euros |
2025 |
2024 |
Deferred consideration |
1,160 |
417 |
Other liabilities |
- |
64 |
Total other liabilities |
1,160 |
481 |
In thousands of euros |
2025 |
2024 |
Current |
491 |
369 |
Non-current |
669 |
112 |
Total other liabilities |
1,160 |
481 |
Deferred consideration
Deferred consideration primarily relates to the acquisition of Conics BV, ColorLogic GmbH and Hybrid Software Iberia SLU. During the year,
cash payments of €310,000 (2024: €310,000) were paid against the deferred considerations, of which:
-
€300,000 (2024: €300,000) in relation of ColorLogic GmbH, and
-
€10,000 (2024: €10,000) in relation of Hybrid Software Iberia SLU.
€918,000 of fixed deferred consideration became due after the acquisition of Conics BV (see Note 36 for further details).
Notes to the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Hybrid Software Group PLC
|
Annual Report
2025
140
141
In thousands of euros |
2025 |
2024 |
Current |
3,776 |
2,500 |
Non-current |
86 |
4,000 |
Total loans and borrowings |
3,862 |
6,500 |
Unsecured loan from related party
An unsecured loan has been granted by Congra Software S.à.r.l. (“Congra”) to HYBRID Software Development NV. (“HYBRID”). During the
year, payments totalling €2,891,000 (2024: €1,507,000) have been made to Congra in respect of the loan. €2,750,000 (2024: €1,300,000)
has been paid as a repayment against the principal and €141,000 (2024: €207,000) has been paid for interest. Interest is calculated and
payable at a fixed rate of 3% per annum on the outstanding balance. The balance of the loan outstanding at 31 December 2025 was
€3,750,000 (2024: €6,500,000).
On 16 February 2023, an addendum to the loan agreement was executed in which an adjustment to the repayment scheme had been agreed
to. Subject to the amended repayment scheme, €93,000 was to be repaid in 2023 and the balance in 8 equal quarterly instalments of
€1,000,000 each of which the first in the 1
st
quarter of 2025 and the last in the 4
th
quarter of 2026. The loan is due to be fully repaid on 31
December 2026.
It has been contractually agreed that HYBRID is entitled to accelerate repayments by making any additional repayments without any additional
cost. In 2025 no advance payments have been made (2024: €1,300,000). As a result, the balance of advance payments as per 31 December
In thousands of euros |
2025 |
2024 |
Customer advances |
647 |
579 |
Deferred revenue |
4,196 |
3,275 |
Total contract liabilities |
4,843 |
3,854 |
In thousands of euros |
2025 |
2024 |
Current |
4,401 |
3,477 |
Non-current |
442 |
377 |
Total contract liabilities |
4,843 |
3,854 |
The contract liabilities relate to consideration received in advance of the provision of goods and services. Customer advances relate to
consideration received in advance of the provision of physical goods, engineering and consultancy services. Deferred revenue relates to the
consideration received for support and maintenance performance obligations that will be recognised as revenue over a period of time.
In thousands of euros |
Total |
Balance at 31 December 2024 |
- |
Amount provided in the year |
115 |
Balance at 31 December 2025 |
115 |
In thousands of euros |
2025 |
2024 |
Current |
115 |
- |
Non-current |
- |
- |
Total provisions |
115 |
- |
The Group operates from a number of leasehold premises under full repairing leases. The provision recognises that repairs are required to
The basic earnings per share is calculated by dividing the net profit attributable to equity holders of the Company by the weighted average
number of ordinary shares in issue during the year, excluding those held in treasury. For diluted earnings per share, the weighted average
number of ordinary shares in issue during the year, excluding those held in treasury, is adjusted to assume conversion of all dilutive potential
ordinary shares. At the year end, those share options where the exercise price is less than the average market price of the Company’s ordinary
shares were the only dilutive potential ordinary shares.
In thousands of euros unless otherwise stated |
2025 |
2024 |
Weighted average number of shares (basic), in thousands of shares |
32,903 |
32,851 |
Profit / (Loss) for the period |
4,237 |
(2,828) |
Basic earnings per share, in euros |
0.13 |
(0.09) |
Diluted earnings per share, in euros |
0.13 |
(0.09) |
At 31 December 2025, the Group has the following shared based payment arrangements.
Free shares
On 24 April 2009 the Group established an HMRC approved Share Incentive Plan (“SIP”) in the UK and also operates an Enterprise
Management Incentive Scheme (“EMI”) to enable its UK employees and Directors to participate in a tax efficient manner in the ownership of
the Company’s shares. Under these schemes, free shares can be granted by the board to eligible employees and Directors. For non-UK
employees and Directors, free shares can be granted directly to the employee. Free shares granted by the board to employees and Directors,
either directly or through the SIP or EMI, have a 3 or 4 year vesting period and free shares granted outside of the SIP or EMI have vesting
periods of either 12 or 24 months.
Employees participating in the SIP are also granted free matching shares in proportion to the partnership shares that they purchased through
a deduction from their gross pay before tax, subject to current HMRC limits. The matching shares have a vesting period of 3 years.
The number of free shares granted, exercised, lapsed or withdrawn during the year was as follows:
As at 31 December |
As at 31 December |
|||||
2024 |
Granted |
Exercised |
Withdrawn |
Lapsed |
2025 |
|
Number |
Number |
Number |
Number |
Number |
Number |
|
SIP matching shares |
13,283 |
- |
(3,227) |
- |
- |
10,056 |
Free shares granted |
9,000 |
- |
(5,354) |
(3,646) |
- |
- |
22,283 |
- |
(8,581) |
(3,646) |
- |
10,056 |
Measurement of fair value
The fair value of free shares granted as matching shares under the SIP was assumed to be equal to the purchase price of corresponding
partnership shares which were acquired by participants in the SIP.
The fair value of free shares granted was assumed to be the closing price reported for the Company’s shares on the last trading day
immediately preceding the date when the shares were granted. It was also considered that all of the grantees would be in employment at the
date of vesting.
31. FINANCIAL RISK MANAGEMENT (CONTINUED)
Market risk (continued)
Notes to the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Hybrid Software Group PLC
|
Annual Report
2025
142
143
The Group’s activities expose it to a variety of financial risks: market (notably foreign exchange risk), credit risk and liquidity risk. The Group’s
overall financial risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse
effects on the Group’s financial performance. Financial risk management is overseen by the Chief Financial Officer (CFO) under policies
approved by the board which has overall responsibility for the establishment and oversight of the Group’s risk management framework
The board provides principles for overall risk management, covering specific areas such as foreign exchange risk and the use of derivative
financial instruments, whereas the CFO identifies, evaluates, and manages financial risks in close co-operation with the Group’s operating
units. The Group does not permit the use of derivative financial instruments for speculative purposes.
The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to
the US dollar and the British pound. Foreign exchange risk arises from future commercial transactions, recognised assets (notably trade
receivables) and liabilities, as well as net investments in foreign operations.
The objective of market risk management is to manage and control market risk exposures within acceptable parameters. To help manage
these foreign exchange risks the Group may utilise foreign currency option or forward contracts transacted with high-credit-quality financial
institutions, after review and approval by the Group’s CFO. There were no such contracts outstanding as at 31 December 2025 (2024: none).
The average and year end exchange rates applied during the year to convert currencies to Euros are as follows:
Average rate for |
Rate at 31 December |
|||
2025 |
2024 |
2025 |
2024 |
|
US dollar |
0.8870 |
0.9236 |
0.8522 |
0.9611 |
Pound sterling |
1.1674 |
1.1791 |
1.1469 |
1.2058 |
Japanese yen |
0.0059 |
0.0061 |
0.0054 |
0.0062 |
Canadian dollar |
0.6342 |
0.6313 |
0.6222 |
0.6698 |
Chinese yuan |
0.1233 |
0.1293 |
0.1218 |
0.1317 |
Australian dollar |
0.5712 |
0.6100 |
0.5703 |
0.5975 |
If sales and results for the year had been converted using the exchange rates prevailing in the prior year, the Group’s 2025 sales would have
increased by approximately €0.73 million and the operating result for the year would have increased by approximately €0.02 million.
The Group had the following current assets and liabilities denominated in currencies:
Pounds |
Japanese |
Canadian |
Chinese |
Australian |
|||
In thousands of euros |
Euros |
US dollars |
sterling |
yen |
dollars |
yuan |
dollars |
At 31 December 2025 |
|||||||
Trade and other receivables |
2,935 |
2,735 |
1,190 |
85 |
- |
62 |
34 |
Contract assets |
2,392 |
1,280 |
1,047 |
5 |
20 |
127 |
36 |
Other current assets |
137 |
- |
168 |
7 |
- |
74 |
- |
Trade and other payables |
(3,272) |
(358) |
(1,072) |
- |
- |
(9) |
- |
Accrued liabilities |
(870) |
(146) |
(287) |
- |
- |
(9) |
(3) |
Loans & borrowings |
(3,776) |
- |
- |
- |
- |
- |
- |
Other liabilities |
(491) |
- |
- |
- |
- |
- |
- |
Provisions |
- |
- |
(115) |
- |
- |
- |
- |
Net exposure |
(2,945) |
3,511 |
931 |
97 |
20 |
245 |
67 |
At 31 December 2024 |
|||||||
Trade and other receivables |
2,051 |
2,740 |
1,013 |
170 |
- |
14 |
57 |
Contract assets |
1,318 |
1,215 |
678 |
1,039 |
31 |
109 |
26 |
Other current assets |
98 |
- |
306 |
7 |
- |
57 |
- |
Trade and other payables |
(2,169) |
(397) |
(1,231) |
(31) |
- |
(30) |
(24) |
Accrued liabilities |
(483) |
(65) |
(833) |
- |
- |
(26) |
(3) |
Loans & borrowings |
(2,500) |
- |
- |
- |
- |
- |
- |
Other liabilities |
(346) |
(20) |
(3) |
- |
- |
- |
- |
Net exposure |
(2,031) |
3,473 |
(70) |
1,185 |
31 |
124 |
56 |
The Group had the following non-current assets and liabilities denominated in currencies:
Pounds |
Japanese |
Canadian |
Chinese |
Australian |
|||
In thousands of euros |
Euros |
US dollars |
sterling |
yen |
dollars |
yuan |
dollars |
At 31 December 2025 |
|||||||
Trade and other receivables |
954 |
85 |
- |
- |
- |
- |
- |
Contract assets |
1,661 |
1,574 |
842 |
5 |
14 |
22 |
- |
Other non-current assets |
9 |
- |
- |
- |
- |
- |
2 |
Retirement benefit obligations |
(255) |
- |
- |
- |
- |
- |
- |
Accrued liabilities |
(40) |
- |
- |
- |
- |
- |
- |
Loans & borrowings |
(86) |
- |
- |
- |
- |
- |
- |
Other liabilities |
(669) |
- |
- |
- |
- |
- |
- |
Net exposure |
1,574 |
1,659 |
842 |
5 |
14 |
22 |
2 |
At 31 December 2024 |
|||||||
Trade and other receivables |
- |
- |
- |
- |
- |
- |
- |
Contract assets |
1,080 |
607 |
1,820 |
1,976 |
52 |
64 |
- |
Other non-current assets |
9 |
6 |
- |
- |
- |
- |
2 |
Retirement benefit obligations |
(1,068) |
- |
- |
- |
- |
- |
- |
Accrued liabilities |
(36) |
- |
- |
- |
- |
- |
- |
Loans & borrowings |
(4,000) |
- |
- |
- |
- |
- |
- |
Other liabilities |
(112) |
- |
- |
- |
- |
- |
- |
Net exposure |
(4,127) |
613 |
1,820 |
1,976 |
52 |
64 |
2 |
Notes to the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
31. FINANCIAL RISK MANAGEMENT (CONTINUED)
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
31. FINANCIAL RISK MANAGEMENT (CONTINUED)
Hybrid Software Group PLC
|
Annual Report
2025
144
145
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations.
The Group is mainly exposed to credit risk from sales to customers. It is Group policy to assess the credit risk of new customers before
entering contracts and to have a frequent and proactive collections process. Historically, bad debts across the Group have been extremely
low and full or part payment in advance by some customers helps to reduce the overall risk. Credit risk also arises from cash deposits held at
banks. At the year-end, the Group’s cash deposits were held with major banks such as HSBC (United States, UK & Australia), PNC Financial
Services Group (United States), KBC Bank (United States, UK & Europe), CREDEM (Italy), Bank of China (China), Sumitomo Mitsui Banking
Corporation (Japan).
The Group’s exposure to credit risk is limited to the carrying amount of financial assets recognised at the balance sheet date. These are
summarised within Note 20 ‘Trade and other receivables’ and Note 22 ‘Cash and cash equivalents’. The Group’s management considers that
all the above financial assets that are not impaired at the balance sheet date under review are of good credit quality, including those that are
past due.
The exposure to credit risk for trade receivables by type of counterparty was as follows:
In thousands of euros |
2025 |
2024 |
Equipment manufacturers |
1,342 |
1,873 |
Resellers and end users |
6,738 |
4,172 |
Total trade receivables |
8,080 |
6,045 |
At 31 December 2025, the ten largest accounts receivable represented 37.6% (2024: 30.3%) of the Group’s accounts receivables and the
single largest accounts receivable represented 19.9% (2024: 6.8%) of the Group's accounts receivables.
The Group measures the loss allowance for trade receivables at an amount equal to lifetime expected credit losses. The expected credit
losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and adjusted for
factors that are specific to the debtor and general economic conditions of the industry in which the Group operates.
The Group has recognised a loss allowance of €379,000 (2024: €456,000) against trade receivables. The loss allowance applies to debt over
90 days and relates to a small number of customers where none of the debt is expected to be recovered through normal trading. A provision
is made against trade receivables until such time as the Group believes the amount to be irrecoverable, after which the trade receivable
Liquidity risk arises from the Group’s management of working capital. It is the risk that the Group will encounter difficulty in meeting its financial
obligations as they fall due. The board reviews an annual 12-month financial projection and the CFO and CEO review cash balances and
cash flow forecasts regularly. At the balance sheet date liquidity risk was considered to be low, given the fact that the Group is expected to be
cash generative and cash and cash equivalents are thought to be at acceptable levels. While the board considers there to be no current need
for additional borrowing facilities, it continually monitors the Group’s cash requirements.
The Group's financial liabilities have contractual maturities as summarised below:
Between 1 and |
|||
In thousands of euros |
Within 1 year |
10 years |
Total |
At 31 December 2025 |
|||
Retirement benefit obligations |
- |
255 |
255 |
Trade and other payables |
4,711 |
- |
4,711 |
Accrued liabilities |
1,315 |
40 |
1,355 |
Loans & borrowings |
3,776 |
86 |
3,862 |
Other liabilities |
491 |
669 |
1,160 |
Total |
10,293 |
1,050 |
11,343 |
At 31 December 2024 |
|||
Retirement benefit obligations |
- |
1,068 |
1,068 |
Trade and other payables |
3,882 |
- |
3,882 |
Accrued liabilities |
1,410 |
36 |
1,446 |
Loans & borrowings |
2,500 |
4,000 |
6,500 |
Other liabilities |
369 |
112 |
481 |
Total |
8,161 |
5,216 |
13,377 |
risk
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern to provide returns for
shareholders, maintain investor, creditor and market confidence, and sustain future development of the business. There were no changes in
the Group’s approach to capital risk management during the year ended 31 December 2025.
In thousands of euros |
2025 |
2024 |
Capital |
||
Total equity |
112,555 |
110,227 |
Less cash and cash equivalents |
14,460 |
9,513 |
98,095 |
100,714 |
|
Overall financing |
||
Total equity |
112,555 |
110,227 |
Plus borrowings |
3,862 |
6,500 |
116,417 |
116,727 |
|
Capital to overall financing ratio |
1:1.19 |
1:1.16 |
Accounting classifications and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value
hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount
is a reasonable approximation of fair value.
| Carrying amount |
Fair value |
||||
Financial |
|||||
assets at |
Other financial |
||||
In thousands of euros |
FVTPL |
amortised cost |
liabilities |
Total |
Level 2 |
At 31 December 2025 |
|||||
Financial assets not measured at fair value |
|||||
Financial assets (see note 17) |
- |
80 |
- |
80 |
80 |
Trade and other receivables (see notes 20) |
- |
8,080 |
- |
8,080 |
8,080 |
Cash and cash equivalents (see note 22) |
- |
14,460 |
- |
14,460 |
14,460 |
- |
22,620 |
- |
22,620 |
22,620 |
|
Financial liabilities measured at fair value |
|||||
Deferred consideration (see note 25) |
1,160 |
- |
- |
1,160 |
1,160 |
Unsecured loan from related party (see note 26) |
3,862 |
- |
- |
3,862 |
3,862 |
5,022 |
- |
- |
5,022 |
5,022 |
|
Financial assets not measured at fair value |
|||||
Trade and other payables |
- |
- |
4,711 |
4,711 |
4,711 |
- |
- |
4,711 |
4,711 |
4,711 |
|
At 31 December 2024 |
|||||
Financial assets not measured at fair value |
|||||
Financial assets (see note 17) |
- |
1,020 |
- |
1,020 |
1,020 |
Trade and other receivables (see notes 20) |
- |
6,045 |
- |
6,045 |
6,045 |
Cash and cash equivalents (see note 22) |
- |
9,513 |
- |
9,513 |
9,513 |
- |
16,578 |
- |
16,578 |
16,578 |
|
Financial liabilities measured at fair value |
|||||
Deferred consideration (see note 25) |
417 |
- |
- |
417 |
417 |
| Unsecured loan from related party (see note 26) |
6,500 |
- |
- |
6,500 |
6,500 |
6,917 |
- |
- |
6,917 |
6,917 |
|
Financial assets not measured at fair value |
|||||
Trade and other payables |
- |
- |
3,882 |
3,882 |
3,882 |
- |
- |
3,882 |
3,882 |
3,882 |
|
Notes to the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Hybrid Software Group PLC
|
Annual Report
2025
146
147
The controlling party is Congra Software SARL (“Congra”), which owns the majority of the voting rights of the Company. Congra is controlled
by Powergraph BV “(Powergraph”) and Powergraph BV is controlled by the Group’s chairman, Guido Van der Schueren. Congra and
Powergraph do not produce consolidated financial statements that are publicly available.
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not
disclosed.
The remuneration paid to the Directors, who are key management personnel of the Group, is detailed in the Directors' remuneration report on
pages 89 to 96.
A service agreement between Hybrid Software Group PLC and Powergraph BV provides an arrangement for the remuneration of Guido Van
der Schueren.
Michael Rottenborn has an employment contract with Hybrid Software Inc. that entitles him to salary, bonus and other benefits in addition to
board fees. A service agreement between Hybrid Software Group PLC and Bellevarde Financial BV provides an arrangement for the
remuneration of Joachim Van Hemelen.
Remuneration of key management personnel, which includes the Directors, was as follows:
In thousands of euros |
2025 |
2024 |
Short-term employee benefits |
3,814 |
3,578 |
Post-employment benefits |
95 |
107 |
Shares sold to Hybrid Software Group PLC |
28 |
11 |
Total key management personnel expenses |
3,937 |
3,696 |
Unsecured loan from related party
An unsecured loan has been granted by Congra Software S.à.r.l. (“Congra”) to HYBRID Software Development NV. (“HYBRID”). During the
year, payments totalling €2,891,000 (2024: €1,507,000) have been made to Congra in respect of the loan. €2,750,000 (2024: €1,300,000)
has been paid as a repayment against the principal and €141,000 (2024: €207,000) has been paid for interest. Interest is calculated and
payable at a fixed rate of 3% per annum on the outstanding balance. The balance of the loan outstanding at 31 December 2025 was
€3,750,000 (2024: €6,500,000).
On 16 February 2023, an addendum to the loan agreement was executed in which an adjustment to the repayment scheme had been agreed
to. Subject to the amended repayment scheme, €93,000 was to be repaid in 2023 and the balance in 8 equal quarterly instalments of
€1,000,000 each of which the first in the 1
st
quarter of 2025 and the last in the 4
th
quarter of 2026. The loan is due to be fully repaid on 31
December 2026.
It has been contractually agreed that HYBRID is entitled to accelerate repayments by making any additional repayments without any additional
cost. In 2025 no advance payments have been made (2024: €1,300,000). As a result, the balance of advance payments as per 31 December
2025 was €250,000 (31 December 2024: €1,300,000).
Additionally, HYBRID was liable for some additional consideration that was payable in respect of a transfer of the Cloudflow intangible assets
prior to joining the Group. The additional consideration was €200,000 (2024: €200,000). At 31 December 2025, €200,000 (2024: €200,000)
was owed to Congra in respect of these items.
Powergraph
A total of €492,000 (2024: €446,000) was paid during the year by HYBRID to Powergraph in respect of the aforementioned service agreement
for Guido Van der Schueren. This amount is included in the amounts presented in the Directors’ remuneration report on pages 89 to 96.
€36,000 (2024: €60,000) was owed at the 31 December 2025.
Other related parties
A total of €270,000 (2024: €267,000) was paid during the year by HYBRID to Bellevarde Financial BV in respect of the aforementioned service
agreement for Joachim Van Hemelen. This amount is included in the amounts presented in the Directors’ remuneration report on pages 89 to
Ownership interest % | ||||
Country of | ||||
Company name | Registered office address | incorporation | 2025 | 2024 |
HYBRID Software | One South State Street, Newtown, Pennsylvania | United States of | ||
Incorporated* | 18940, USA | America | 100% | 100% |
Global Graphics Software | 6601 S.Tamiami Trail, Suite 176, Sarasota, FL 34231, | United States of | ||
Incorporated*^ | USA | America | - | 100% |
Global Graphics (UK) | 2030 Cambourne Business Park, Cambourne, CB23 | United Kingdom | - | 100% |
Limited** | 6DW, UK | |||
Hybrid Software Helix | ||||
Limited (formerly Global | 2030 Cambourne Business Park, Cambourne, CB23 | |||
Graphics Software | 6DW, UK | United Kingdom | 100% | 100% |
Limited)* | ||||
HYBRID Software UK | 2030 Cambourne Business Park, Cambourne, CB23 | |||
Limited* | 6DW, UK | United Kingdom | 100% | 100% |
Conics BV# | Tiendelaan 5/A, 8900 Ieper, Belgium | Belgium | 100% | - |
HYBRID Software Brandz | Guldensporenpark 18, Block B, 9820 Merelbeke, | |||
NV< | Belgium | Belgium | 100% | - |
HYBRID Software | Guldensporenpark 18, Block B, 9820 Merelbeke, | |||
Development NV* | Belgium | Belgium | 100% | 100% |
Guldensporenpark 18, Block B, 9820 Merelbeke, | ||||
HYBRID Software NV* | Belgium | Belgium | 100% | 100% |
HYBRID Software Group | ||||
SARL | 19-21 route d’Arlon, LU-8009 Strassen, Luxembourg | Luxembourg | 100% | 100% |
HYBRID Software France | ||||
SAS* | 15 Rue Marsollier, F-75002 Paris, France | France | 100% | 100% |
HYBRID Software Iberia | Riera dels Frares, 8 – E08907 L’Hospitalet, Barcelona, | |||
S.L.U.* | Spain | Spain | 100% | 100% |
HYBRID Software Italy | ||||
SRL* | Viale Sondrio 2, IT-20124 Milano, Italy | Italy | 100% | 100% |
HYBRID Software GmbH* | Uhlandstrabe 9, 79102 Freiburg, Germany | Germany | 100% | 100% |
HYBRID Software China | Room 2504, 25 th Floor, Building 2, No. 900 Yishan | China | 100% | 100% |
Co. Limited* | Road, Xuhui District, Shanghai, China | |||
Global Graphics | 610 AIOS Nagatacho Bldg, 2-17-17 Nagatacho, | |||
Kabushiki Kaisha* | Chiyoda-ku, Tokyo 100-0014, Japan | Japan | 100% | 100% |
HYBRID Software | Suite 2, Level 14, 9 Castlereagh Street, Sydney, NSW | |||
Australia Pty Limited* | 2000, Australia | Australia | 100% | 100% |
Harston Mill, Royston Road, Harston, Cambridge, | ||||
Meteor Inkjet Limited | CB22 7GG, UK | United Kingdom | 100% | 100% |
4750 Venture Drive, Suite 200A, Ann Arbor, Michigan | United States of | |||
Xitron, LLC* | 48108, USA | America | 100% | 100% |
See Note 3 ‘Investments’ of the company financial statements for the principal activities of each company.
* indirectly held by the Company.
** Global Graphics (UK) Limited was dissolved on 26 August 2024
^ Global Graphics Software Incorporated legally merged into HYBRID Software Incorporated on 1 November 2025
< HYBRID Software Brandz NV was acquired on 8 August 2025
Notes to the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
148
149
In thousands of euros |
Lease liabilities |
Other liabilities |
Total |
Balance at 31 December 2024 |
1,991 |
6,981 |
8,972 |
Proceeds from loans and borrowings |
- |
113 |
113 |
Loan repayment |
- |
(2,750) |
(2,750) |
Deferred consideration paid |
- |
(310) |
(310) |
Deferred consideration obtained |
- |
966 |
966 |
Principal payments of lease liabilities |
(1,001) |
- |
(1,001) |
Other debts |
- |
(67) |
(67) |
Total cashflows |
(1,001) |
(2,048) |
(3,049) |
Deferred consideration fair value adjustment |
- |
89 |
89 |
Recognition of new lease liabilities |
102 |
- |
102 |
Remeasurement of existing lease liabilities |
(393) |
- |
(393) |
Other non-cash items* |
109 |
- |
109 |
Exchange rate effects |
(93) |
- |
(93) |
Total non-cash items |
(275) |
89 |
(186) |
Balance at 31 December 2025 |
715 |
5,022 |
5,737 |
In thousands of euros |
Lease liabilities |
Other liabilities |
Total |
Balance at 31 December 2023 |
2,601 |
8,695 |
11,296 |
Loan repayment |
- |
(1,300) |
(1,300) |
Deferred consideration paid |
- |
(310) |
(310) |
Contingent consideration paid |
- |
(236) |
(236) |
Principal payments of lease liabilities |
(1,003) |
- |
(1,003) |
- |
64 |
64 |
|
Total cashflows |
(1,003) |
(1,782) |
(2,785) |
Deferred consideration fair value adjustment |
- |
65 |
65 |
Contingent consideration fair value adjustment |
- |
3 |
3 |
Recognition of new lease liabilities |
216 |
- |
216 |
Other non-cash items* |
120 |
- |
120 |
Exchange rate effects |
57 |
- |
57 |
Total non-cash items |
393 |
68 |
461 |
Balance at 31 December 2024 |
1,991 |
6,981 |
8,972 |
In 2025 no operations have been discontinued.
On 2 December 2024, (I) Hybrid Software Development NV sold the shares it held in eXplio NV (‘eXplio’), against a cash consideration of €1,
and (II) Hybrid Software Group PLC sold a receivable it held on eXplio, against a cash consideration of €20,000.
The aggregate loss of the sale of the discontinued operation, net of tax, amounts to €120,000.
The subsidiary was not previously classified as held-for-sale or as a discontinued operation. Given the immaterial nature of eXplio’s financial
result, the relevant accounting standard IFRS 5 has not been applied as the Consolidated Statement of Comprehensive Income has not been
re-presented to show the discontinued operation separately from continuing operations.
As per 30 November 2024, eXplio had a total asset value of €193,000 and net asset value of €140,000.
In the first 11 months of 2024, eXplio achieved revenue of €168,000 and had a net loss of €9,000. In 2023, over a 12 month period, eXplio
Acquisition of HYBRID Software Brandz NV
On 8 August 2025, the Group acquired the shares of HYBRID Software Brandz NV (“HS Brandz”) from
Congra Software SARL (“Congra”).
HS Brandz is a company active in the development and marketing of artwork management software. In the past few years it has developed a
new cloud based artwork management system called Artflow. In addition to Artflow it has legacy systems called Artemis and D2P.
Notwithstanding that Congra at acquisition date both controlled the Group as HS Brandz, the Board opted to apply the acquisition method
under IFRS3 rather than recording the acquisition at net book value.
The acquisition date fair value of the consideration was made up of:
In thousands of euros |
|
Cash, paid on closing |
- |
Repayment of debt due to Congra |
622 |
Total consideration |
622 |
The identifiable assets acquired and liabilities assumed were:
Fair value |
|||
In thousands of euros |
Book value |
adjustment |
Total |
Property, plant and equipment (see note 14) |
23 |
- |
23 |
Other intangible assets (see note 15) |
- |
507 |
507 |
Deferred tax assets |
- |
84 |
84 |
Trade and other receivables |
92 |
- |
92 |
Other current assets |
8 |
- |
8 |
Cash and cash equivalents |
261 |
- |
261 |
Current tax liabilities |
(1) |
- |
(1) |
Trade and other payables |
(82) |
- |
(82) |
Other liabilities |
(623) |
- |
(623) |
Contract liabilities |
(269) |
- |
(269) |
Total identifiable net assets acquired |
(591) |
591 |
- |
The intangible assets recognised have been valued as follows:
Intangible asset |
Valuation method |
Technology |
The average of the present value of cashflows from operating activities in relation to owned technology (using a |
post-tax discount rate of 19.71%, a forecasted profit level, an assumption that revenue will grow during the valuation |
|
period. |
|
Know how |
Cost approach for replacement or reproduction cost. |
Notes to the consolidated financial statements
COMPANY STATEMENT OF FINANCIAL POSITION
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
36. ACQUISITIONS (CONTINUED)
Hybrid Software Group PLC
|
Annual Report
2025
150
151
Acquisition of Conics BV
On 18 September 2025, the Group acquired the shares of Conics BV (“Conics”) from the founders of the business.
Conics is a fully independent software consultancy company focusing on graphic processes.
The acquisition date fair value of the consideration was made up of:
In thousands of euros |
|
Fixed consideration in cash |
250 |
Fixed deferred consideration |
918 |
Working capital adjustment |
213 |
Total consideration |
1,381 |
The identifiable assets acquired and liabilities assumed were:
Fair value |
|||
In thousands of euros |
Book value |
adjustment |
Total |
Property, plant and equipment (see note 14) |
174 |
- |
174 |
Other intangible assets (see note 15) |
- |
732 |
732 |
Trade and other receivables |
219 |
- |
219 |
Other current assets |
28 |
- |
28 |
Current tax assets |
15 |
- |
15 |
Cash and cash equivalents |
184 |
- |
184 |
Deferred tax liability |
- |
(183) |
(183) |
Non-current loans & borrowings |
(86) |
- |
(86) |
Current loans & borrowings |
(39) |
- |
(39) |
Trade and other payables |
(181) |
- |
(181) |
Contract liabilities |
(63) |
- |
(63) |
Total identifiable net assets acquired |
251 |
549 |
800 |
The intangible assets recognised have been valued as follows:
Intangible asset |
Valuation method |
Customer |
The present value of cashflows from operating activities in relation to established recurring customers’ existing at |
relationships |
acquisition date over a 10 year period, using a discount rate of 11.97%, an historical profit % level and an |
assumption that revenue will be subject to 5% annual attrition rate over the forecast period. |
|
Know how |
Cost approach for replacement or reproduction cost. |
Goodwill was recognised as a result of the acquisition as follows:
In thousands of euros |
|
Total consideration payable |
1,381 |
Fair value of identifiable net assets |
(800) |
Total Goodwill (see note 16) |
581 |
The goodwill represents the ability to develop customer relationships, new technology & opportunities expected from access to potential new
customers, any value of intangible assets into perpetuity over their limited useful lives and the assembled workforce that does not meet
separate recognition criteria. None of the goodwill recognised is expected to be deductible for tax purposes.
For the period from acquisition to 31 December 2025, the revenues and the profit before tax generated by this acquisition were €439,000 and
In January 2026, three office leases due to expire in 2026 were extended. The remeasurements equate to an increase in the right-of-use
asset and lease liability of €1,240,000, based on the year end exchange rate.
For the year ended 31 December |
|||
In thousands of euros |
Note |
2025 |
2024 |
Non-current assets |
|||
Investments |
3 |
90,460 |
90,460 |
Trade and other receivables |
4 |
10,890 |
9,889 |
Total non-current assets |
101,350 |
100,349 |
|
Current assets |
|||
Trade and other receivables |
4 |
279 |
1,734 |
Cash and cash equivalents |
6,873 |
3,608 |
|
Total current assets |
7,152 |
5,342 |
|
Current Liabilities |
|||
Creditors: Amounts falling due within one year |
5 |
(622) |
(1,287) |
Net current assets |
6,530 |
4,055 |
|
Creditors: Amounts falling due in more than one year |
6 |
- |
(107) |
Net assets |
107,880 |
104,297 |
|
Capital and reserves |
|||
Called up share capital |
8 |
13,164 |
13,164 |
Share premium account |
8 |
1,979 |
1,979 |
Merger reserve |
8 |
67,015 |
67,015 |
Treasury shares |
8 |
(684) |
(193) |
Profit and loss account |
26,406 |
22,332 |
|
Total shareholders' funds |
107,880 |
104,297 |
|
The notes on pages 153 to 157 form part of these financial statements.
Under section 408 of the Companies Act 2006 the Company is exempt from the requirement to present its own income statement and related
notes. The result for the year ended 31 December 2025 was a profit of €4,106,000 (2024: loss of €5,289,000).
There are no recognised gains or losses for the current year or preceding year other than those disclosed above.
These financial statements were approved and authorised for issue by the board of Directors on 12 March 2026 and were signed on its behalf
by:
Michael Rottenborn
Director
Company registered number: 10872426
Notes to the consolidated financial statements
COMPANY STATEMENT OF CHANGES IN EQUITY
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
NOTES TO THE COMPANY FINANCIAL STATEMENTS
Hybrid Software Group PLC
|
Annual Report
2025
152
153
Called up | Share premium | Merger | Treasury | Profit and loss | |||
In thousands of euros | Note | share capital | account | reserve | shares | account | Total equity |
Balance at 31 December 2023 | 13,164 | 1,979 | 67,015 | (179) | 27,661 | 109,640 | |
Total comprehensive income for the | |||||||
year | |||||||
Net loss for the year | - | - | - | - | (5,289) | (5,289) | |
Total comprehensive income for the | |||||||
- | - | - | - | (5,289) | (5,289) | ||
year | |||||||
Transactions with owners | |||||||
Share-based payment transactions | 8 | - | - | - | 40 | (40) | - |
Own shares re-purchased | 8 | - | - | - | (54) | - | (54) |
Total transactions with owners | - | - | - | (14) | (40) | (54) | |
Balance at 31 December 2024 | 13,164 | 1,979 | 67,015 | (193) | 22,332 | 104,297 | |
Total comprehensive income for the | |||||||
year | |||||||
Net profit for the year | - | - | - | - | 4,106 | 4,106 | |
Total comprehensive loss for the year | - | - | - | - | 4,106 | 4,106 | |
Transactions with owners | |||||||
Share-based payment transactions | 8 | - | - | - | 32 | (32) | - |
Own shares re-purchased | 8 | - | - | - | (523) | - | (523) |
Total transactions with owners | - | - | - | (491) | (32) | (523) | |
Balance at 31 December 2025 | 13,164 | 1,979 | 67,015 | (684) | 26,406 | 107,880 |
The notes on pages 153 to 157 form part of these financial statements.
1.
PRINCIPAL ACCOUNTING POLICIES
Hybrid Software Group PLC is a company incorporated and domiciled in the United Kingdom.
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the
Company’s financial statements.
Basis of preparation
These financial statements were prepared in accordance with Financial Reporting Standard 101 - Reduced Disclosure Framework (“FRS
101”).
In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements of UK-adopted
international accounting standards but makes amendments where necessary to comply with Companies Act 2006 and has set out below
where advantage of the FRS 101 disclosure exemptions has been taken.
The Company is an ultimate parent undertaking and is included in the Company's consolidated financial statements. The consolidated financial
statements are prepared in accordance with IFRS and are available to the public and may be obtained from 2030 Cambourne Business Park,
Cambourne, CB23 6DW.
In these financial statements, the company has applied the exemptions available under FRS 101 in respect of the following disclosures:
•
A Cash Flow Statement and related notes;
•
Comparative period reconciliations for share capitals;
•
Disclosures in respect of transactions with wholly owned subsidiaries;
•
Disclosures in respect of capital management;
•
The effects of new but not yet effective IFRS; and
•
Disclosures in respect of the compensation of Key Management Personnel.
As the consolidated financial statements of the Company include the equivalent disclosures, the Company has also taken the exemptions
under FRS 101 available in respect of the following disclosures:
•
IFRS 2 Share Based Payments in respect of group settled share based payments;
•
Certain disclosures required by IFRS 3 Business Combinations in respect of business combinations undertaken by the Company;
and
•
Financial instruments.
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial
statements. Group accounting policies also apply to the Company, in addition to those stated below.
Investments
Investments in subsidiary undertakings are stated at cost, less provision for any impairment in value.
Foreign currencies
The functional and presentation currency of the Company is euro.
Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies are translated using the rate of exchange ruling at the balance sheet date or at a contracted rate if applicable
and any exchange differences arising are taken to the profit and loss account.
Provisions
Provisions are recognised when the Company has a present obligation as a result of a past event, and it is probable that the Company will be
required to settle that obligation. Provisions are measured at the Directors’ best estimate of the expenditure required to settle the obligation
at the balance sheet date and are discounted to present value where the effect is material.
Taxation
The charge for taxation is based on the profit or loss for the year and takes into account taxation deferred because of timing differences
between the treatment of certain items for taxation and accounting purposes. Deferred taxation is recognised, without discounting, in respect
of all timing differences between the treatment of certain items for taxation and accounting purposes which have arisen but not reversed by
the balance sheet date, except as required by IAS 12.
Notes to the consolidated financial statements
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED)
1.
PRINCIPAL ACCOUNTING POLICIES (CONTINUED)
Share based payments
The share option programme allows employees of the Group to acquire shares of the Company. The fair value of the options and shares
granted is recognised as an employee expense, with a corresponding increase in equity, and is measured at grant date and spread over the
period during which the employees become unconditionally entitled to the options or shares. The fair value of the options granted is measured
using an appropriate valuation model, taking into account the terms and conditions upon which the options were granted. At each reporting
date, the amount recognised as an expense is adjusted to reflect the actual number of share options or shares for which the related service
and non-market conditions are met. The proceeds received, net of any directly attributable transaction costs, are credited to share capital for
the par value of the shares issued and to share premium for the balance, when the share options are exercised.
Going concern
The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable
future. The Directors have prepared cash flow forecasts for a period of at least 12 months from the date of approval of these financial
statements and have no reason to believe that a material uncertainty exists that may cast significant doubt about the Group’s ability to continue
as a going concern, notably because of a cash position of €14.46 million as at 31 December 2025 (2024: €9.51 million). Those forecasts take
into account multiple reasonably possible downsides. Thus, they continue to adopt the going concern basis of accounting in preparing the
annual financial statements. Refer to Note 2 ‘Basis of preparation’ of the consolidated financial statements for further details.
Estimates and Judgements
Investments (see Note 3 ‘Investments’) are assessed at each reporting date to determine whether there is any indication of impairment. If
such indication exists, then the asset’s recoverable amount is estimated.
Amounts owed by group undertakings (see Note 4 ‘Trade and Other Receivables’) are assessed for impairment but are deemed by the
Directors to be recoverable in more than 12 months.
2.
EMPLOYEES AND REMUNERATION OF DIRECTORS
The Company employed an average of nil employees (including executive Directors) during the year (2024: nil). Directors’ emoluments are
disclosed in the Directors' remuneration report on pages 89 to 96 and in Note 12 ‘Remuneration of Directors’ of the consolidated financial
statements.
3. INVESTMENTS
In thousands of euros
Shares in
subsidiary
undertakings
Cost
At 31 December 2024 and 2025
154,498
Provision or impairment
At 31 December 2024 and 2025
64,038
Net book value
At 31 December 2024 and 2025
90,460
The investment of €4,381,000 in ColorLogic GmbH was transferred during the prior year to HYBRID Software GmbH (a fellow subsidiary
undertaking) on 14 May 2024.
Investments are assessed at each reporting date to determine whether there is any objective evidence that they are impaired. An investment
is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash
flows of that investment. An impairment loss in respect of an investment is measured as the difference between its carrying amount and the
present value of the estimated future cash flows.
NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED)
3. INVESTMENTS (CONTINUED)
The estimated fair value of the investments has been determined by the present value of future cash flows over a five-year period from 2026
to 2030 using the same discount rate and exchange rates that were used for the impairment review of Goodwill in the consolidated financial
statements (see Note 16 ‘Goodwill’ of the consolidated financial statements). Management considers the use of a five-year period is justified
because the underlying businesses have been established for between 10 and 25 years, have recurring revenues and continue to develop
new products and gain new customers. An impairment of €nil (2024: €6,280,000) has been recognised against the investment in HYBRID
Software Group SARL. At 31 December 2025 the Company had the following interests in the ordinary share capital of group undertakings:
Class of
shares
held
Ownership interest
Company name
Registered office address
Principal Activities
2025
2024
HYBRID Software
Incorporated*
One South State Street, Newtown,
Pennsylvania 18940, USA
Computer software sales and
technical support.
Ordinary
100%
100%
Global Graphics
Software
Incorporated*^
6601 S.Tamiami Trail, Suite 176,
Sarasota, FL 34231, USA
Computer software development,
sales and technical support.
Ordinary
-
100%
Global Graphics (UK)
Limited**
2030 Cambourne Business Park,
Cambourne, CB23 6DW, UK
Dormant holding company.
Ordinary
-
100%
Hybrid Software Helix
Limited (formerly
Global Graphics
Software Limited)*
2030 Cambourne Business Park,
Cambourne, CB23 6DW, UK
Computer software development,
sales and technical support.
Ordinary
100%
100%
HYBRID Software UK
Limited*
2030 Cambourne Business Park,
Cambourne, CB23 6DW, UK
Computer software sales and
technical support.
Ordinary
100%
100%
Conics BV#
Tiendelaan 5/A, 8900 Ieper, Belgium
Consultancy services focusing on
graphic processes
Ordinary
100%
-
HYBRID Software
Brandz NV<
Guldensporenpark 18, Block B, 9820
Merelbeke, Belgium
Computer software development,
sales and technical support.
Ordinary
100%
-
HYBRID Software
Development NV*
Guldensporenpark 18, Block B, 9820
Merelbeke, Belgium
Computer software development,
sales and technical support.
Ordinary
100%
100%
HYBRID Software NV*
Guldensporenpark 18, Block B, 9820
Merelbeke, Belgium
Computer software sales and
technical support.
Ordinary
100%
100%
HYBRID Software
Group SARL
19-21 route d’Arlon, LU-8009
Strassen, Luxembourg
Holding company.
Ordinary
100%
100%
HYBRID Software
France SAS*
15 Rue Marsollier, F-75002 Paris,
France
Computer software sales and
technical support.
Ordinary
100%
100%
HYBRID Software
Iberia S.L.U.*
Riera dels Frares, 8 – E08907
L’Hospitalet, Barcelona, Spain
Computer software sales and
technical support.
Ordinary
100%
100%
HYBRID Software Italy
SRL*
Viale Sondrio 2, IT-20124 Milano,
Italy
Computer software sales and
technical support.
Ordinary
100%
100%
HYBRID Software
GmbH*
Uhlandstrabe 9, 79102 Freiburg,
Germany
Computer software sales and
technical support.
Ordinary
100%
100%
HYBRID Software
China Co. Limited*
Room 2504, 25
th
Floor, Building 2,
No. 900 Yishan Road, Xuhui District,
Shanghai, China
Computer software sales and
technical support.
Ordinary
100%
100%
Global Graphics
Kabushiki Kaisha*
610 AIOS Nagatacho Bldg, 2-17-17
Nagatacho, Chiyoda-ku, Tokyo 100-
0014, Japan
Technical support of computer
software.
Ordinary
100%
100%
HYBRID Software
Australia Pty Limited*
Suite 2, Level 14, 9 Castlereagh
Street, Sydney, NSW 2000,
Australia
Computer software sales and
technical support.
Ordinary
100%
100%
Meteor Inkjet Limited
Harston Mill, Royston Road,
Harston, Cambridge, CB22 7GG, UK
Design and supply of technology
for digital inkjet printing.
Ordinary
100%
100%
Xitron, LLC*
4750 Venture Drive, Suite 200A,
Ann Arbor, Michigan 48108, USA
Computer software development,
sales and technical support.
n/a
100%
100%
* indirectly held by the Company.
** Global Graphics (UK) Limited was dissolved on 26 August 2024
^ Global Graphics Software Incorporated legally merged into HYBRID Software Incorporated on 1 November 2025
< HYBRID Software Brandz NV was acquired on 8 August 2025
# Conics BV was acquired on 18 September 2025
154
155
Notes to the consolidated financial statements
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED)
4.
TRADE AND OTHER RECEIVABLES
In thousands of euros
2025
2024
Amounts owed by group undertakings
10,989
11,379
Other receivables
180
244
Total trade and other receivables
11,169
11,623
In thousands of euros
2025
2024
Current
279
1,734
Non-current
10,890
9,889
Total trade and other receivables
11,169
11,623
There are formal intercompany agreements in place, which incur interest charges at 6% per annum and have a fixed repayment schedule.
Other amounts owed by group undertakings are interest free and would be repayable on demand.
5.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
In thousands of euros
2025
2024
Trade and other payables
68
85
Amounts owed to group undertakings
3
442
Accruals
357
460
Deferred consideration (see note 6)
194
300
Total creditors due within one year
622
1,287
There are formal intercompany agreements in place, which incur interest charges at 6% per annum and have a fixed repayment schedule.
Other amounts owed by group undertakings are interest free and would be repayable on demand.
6.
CREDITORS: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR
In thousands of euros
2025
2024
Deferred consideration
-
107
Total other liabilities
-
107
Deferred consideration
Deferred consideration relates to the acquisition of ColorLogic GmbH. During the year, cash payments of €300,000 (2024: €300,000) were
paid against the deferred consideration.
7. TAX
Deferred tax assets are recognised for tax losses available for carrying forward to the extent that the realisation of the related tax benefit
through future taxable profits is probable. The Company had no recognised or unrecognised deferred tax assets as at 31 December 2025
(2024: €nil).
NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED)
8.
SHARE CAPITAL AND RESERVES
Ordinary shares of €0.40 allotted, called up and fully paid:
2025
2024
In thousands of euros, except number of shares
Number
Value
Number
Value
As at 31 December
32,909,737
13,164
32,909,737
13,164
Share premium:
In thousands of euros
2025
2024
As at 31 December
1,979
1,979
Merger reserve:
In thousands of euros
2025
2024
As at 31 December
67,015
67,015
Treasury shares:
The Company's investment in its own shares in treasury is as follows:
2025
2024
In thousands of euros, except number of shares
Number
Value
Number
Value
As at 1 January
63,822
193
58,584
179
Disbursement of shares to employees
(9,000)
(32)
(9,106)
(40)
Own shares re-purchased
137,159
523
14,344
54
As at 31 December
191,981
684
63,822
193
9. SHARE BASED PAYMENTS
Information about share based payments for Directors and employees is detailed in Note 30 ‘Share based payments’ of the consolidated
financial statements.
10. RELATED PARTY TRANSACTIONS
The controlling party is Congra Software SARL (“Congra”), which owns the majority of the voting rights of the Company. Congra is controlled
by Powergraph BV and Powergraph BV is controlled by the Group’s chairman, Guido Van der Schueren.
The remuneration paid to the Directors is detailed in the Directors’ remuneration report on pages 89 to 96. Other related party relationships
are detailed in Note 32 ‘Related parties’ of the consolidated financial statements.
The Company has taken advantage of the exemption under paragraph 8(k) of FRS 101 for transactions with wholly owned group companies.
11. SUBSEQUENT EVENTS
Details of post balance sheet events requiring disclosure in the financial statements for the year ended 31 December 2025 are in Note 37
‘Subsequent events’ of the consolidated financial statements.
156
157
OTHER
INFORMATION
Glossary
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Additive manufacturing
Building physical product by digitally ‘printing’ it, often
with technology similar to the inkjet heads used for 2D
printing. The term “3D printing” is often used for home
and small-scale additive manufacturing.
Binder jetting
A class of additive manufacturing in which the solid form
is created by jetting a binder fluid into a bed of powder.
This technique can be used for metals, polymers and
glass.
CAGR
Compound Annual Growth Rate.
Colour separation
Colour can be specified in many different ways in the
digital world, but printing uses only a small set of inks.
All colours in the source document must be transformed
into a set of separations, one for each of the inks to be
used. Most commonly in commercial print, labels and
packaging this means Cyan, Magenta, Yellow and Black
(see also “Extended Gamut”).
Converting
The design for a label or package is converted from a
primary copy, such as a PDF file, through printing on
a substrate and then one or more processes such as
cutting, folding and gluing to create a label that can be
applied or a carton that can be filled.
CTP
Computer to Plate – imaging a printing plate directly
from digital data rather than imaging a film and using
that to image the plate.
CPG
Consumer packaged goods – items used daily by
average consumers that require routine replenishment,
such as food, beverages, clothing, beauty and
household products.
Digital Front End (DFE)
The controller that manages and drives a digital press,
consuming source files such as PDF, processing them as
necessary and sending colour separations to the
printhead.
Enterprise software
Computer programs that have common business
applications. In relation to printing these typically
manage customer relationships, estimation, billing,
production management and shipping.
EPS
Encapsulated PostScript; a subset of the PostScript PDL
with extra commenting rules designed to allow graphics
to be placed within a larger page in a design application.
Extended gamut
Printing in the commercial, labels and packaging sectors
is often done using four inks: Cyan, Magenta, Yellow
and Black (CMYK). Together these can deliver good
approximations of most colours. An extended gamut
ink set can be used to reproduce more vibrant colours,
including some brand colours. This is often achieved by
adding one or more of Orange, Green and Violet inks to
the CMYK set.
Flexo/Flexography
A conventional printing technology in which flexible
plates with raised areas are used to transfer ink onto the
substrate. Widely used in labels and packaging.
FMCG
Fast-moving Consumer Goods – refers to products
that you can sell quickly at relatively low cost. They are
considered moving because retailers need to restock
the shelves regularly due to high turnover rate.
Glossary
Functional printing
Applying substances to a substrate that do more than
represent colour or some other aspect of appearance
such as gloss, using a process that’s normally used for
printing. Examples include conductive tracks for printed
electronics, or materials that change colour in the
presence of certain gases for food safety, etc.
Gravure
Conventional print technology in which a cylinder is
engraved with cells which carry ink to transfer it to the
substrate. Very expensive to prepare cylinders for each
job, so it’s most used for jobs with extremely long run
lengths (millions of copies), such as long-run magazines
and wall-coverings.
Image setter
Machine for imaging from digital data to film or
photographic paper. The result would then be used
to image a plate. Obsolete for offset lithography
and increasingly so for other conventional press
technologies; replaced by plate setters.
Imposition
Laying out multiple pages or multiple jobs together to
maximise usage of the area of a printing press.
Industrial inkjet
A term that is used with various different meanings,
but is best applied to printing where the substance
being printed is a part of the final product, as opposed
to carrying information (e.g. in commercial print)
orto protect a product (e.g. in packaging). Examples
of industrial print include applications of colour and
functional coatings to textiles, ceramics and other décor.
Industry 4.0
A term for fully automated production, where equipment
performing different processes are interconnected and
share information.
Inkjet printing
Application of coloured or functional fluids to a substrate
by jetting as drops.
JPEG
Joint Photographic Experts Company’; a committee (ISO/
IEC JTC1/SC29) and the format that they defined for
storing images in a very compact way using (mainly)
compression. There are now variants such as JPEG 2000
and JPEG-XR that use rather different and incompatible
techniques.
Litho
Offset lithography – conventional printing press
technology using plates treated to make some areas
hydrophilic and others hydrophobic (attracting and
rejecting water) to control where ink will adhere to them.
‘Offset’ here means that the ink is transferred from the
plate to a blanket before then being applied to the media
being printed on.
Mass customisation
Mass produced products where every item is unique.
Examples include personalized labels, tee-shirts, phone
cases and the like.
OEM
OEM, or original equipment manufacturer, is an
organisation that makes devices from component parts
bought from other organisations.
Piezoelectric
Electricity resulting from pressure and latent heat. Piezo
printheads are all based on the principle that a particular
type of crystal expands or contracts when an electric
current is passed though it and switched off again. This
expansion/contraction is used as the basis of a pump in
the ink chamber.
PDF
Portable Document Format, a universal file format that
is maintained by the International Standards
Organisation. In printing it can contain all the information
required to produce an item that matches exactly what
the graphic designer intended in terms of fonts, colour
specifications etc.
PostScript
Page description language (PDL) created in the mid
1980s by Adobe Systems; the first general PDL to be
160
161
Glossary
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
widely adopted for both office and production printing,
replacing proprietary languages from each vendor. Still
used for office printing, but largely replaced by PDF for
production printing.
Pre-press
A department or series of software processes that
prepare files for printing.
Printhead driver solutions
Our software and proprietary driver electronics send
data to printheads inside inkjet devices to control the
printing process.
Printheads
Printheads are a component of an inkjet press and
generally contain multiple nozzles for jetting ink or other
fluids onto substrates.
Proofer
Device used to make colour-managed prints configured
to match the appearance of the same job on a
production printing press for use in approval workflows.
Increasingly replaced by “soft proofing”, using a
calibrated computer display for approval rather than
creating printed copy
Rasterisation
The process of transforming a page description
language ( see PostScript), comprising text, vector
graphics, images and other complex constructs, into a
rectangular grid of pixels that is suitable for delivering
to an inkjet head, plate setter or other imaging device.
Often equated to ‘rendering’.
RIP/ RIPping
A Raster Image Processor converts graphic designs into
raster data (image pixels) for onward processing by the
printing device.
Screening
Screening (sometimes called halftone screening)
converts graphical designs from raster data (such as
that delivered by a RIP) into a slightly different format.
The process compensates for the fact that most printing
technology cannot represent more than a very small
number of different tints of each ink. Screening places
very small and carefully structured collections of areas
of ink in such a way that the human eye is fooled
into seeing additional tints from the intended viewing
distance.
Screen printing
In screen printing ink is applied to a surface through a
stencil held on a mesh attached to a frame.
Smart factory
Smart factories are designed to autonomously run
the entire production process and this will include the
print subsystems.
Trapping
A process to avoid unpleasant visible effects when
the colour separations being printed are not perfectly
aligned with each other (in register). It typically works by
enlarging some objects slightly, and contracting others.
Variable data processing or VDP
Printing items where every instance varies at least
slightly from the others, often with some graphics in
common as well. Examples range from adding serial
numbers to labels, through direct mail and variations
designed to ensure that packaging has more shelf
appeal.
Waveform
The way in which the voltage applied to an inkjet head is
varied over time in order to deliver well-formed ink drops
of the desired size and at the desired speed.
Wide format
Printing on devices with a width that’s usually more than
50cm, usually using inkjet and often related in some
way to marketing or photo finishing, including banners,
stickers, soft signage and sportswear.
162
163
Info
Hybrid Software Group
Strategic report
Governance
Financial statements
Other information
Hybrid Software Group PLC
|
Annual Report
2025
Country of incorporation: England and Wales
Legal form: Public limited company
Company number: 10872426
Directors
- Guido Van der Schueren
- Michael Rottenborn
- Joachim Van Hemelen
- Clare Findlay
- Luc De Vos
Secretary
Peter Goodwin
Auditors
PKF Littlejohn LLP,
15 Westferry Circus, Canary Wharf, London E14 4HD
Lawyers
Mills & Reeve LLP, Botanic House,
100 Hills Road, Cambridge, CB2 1AR
Share registrar
MUFG Corporate Markets (UK) Ltd, 6th Floor,
65 Gresham Street, London, EC2V 7NQ
Stock market: Euronext Brussels
Stock ticker: HYSG
Legal Entity Identifier (LEI): 213800ZFW446QIHAB654
Shares ISIN: GB00BYN5BY03
164
165