Grafenia PLC (GB:SFT)
LSE:SFT
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Grafenia
(LSE:SFT)
Select Model
Select Model
Rating:52Neutral
Price Target:
16.00 p
▼(-32.77% Downside)
Action:ReiteratedDate:02/24/26
The score is held back primarily by very weak technical momentum and the lack of profitability (negative net margin and negative ROE). Offsetting this somewhat are improving revenue and operating margins plus a healthier leverage profile, but cash flow trends (notably declining free cash flow growth) and a loss-driven negative P/E keep the overall rating in the lower-middle range.
Positive Factors
Franchise-based Business Model
Grafenia's franchising model creates recurring fee income, supply sales and service revenue while shifting capital intensity to franchisees. This structure supports stable, scalable margins and network effects, enabling predictable cash flows and lower capex needs over multiple quarters.
Negative Factors
Persistent Net Losses
Despite operational improvements, ongoing net losses mean the company still fails to convert gross profits into positive bottom-line results. Persistent losses restrict retained earnings, limit capital for strategic initiatives, and prolong dependence on external funding until profitability is restored.
Read all positive and negative factors
Positive Factors
Negative Factors
Franchise-based Business Model
Grafenia's franchising model creates recurring fee income, supply sales and service revenue while shifting capital intensity to franchisees. This structure supports stable, scalable margins and network effects, enabling predictable cash flows and lower capex needs over multiple quarters.
Read all positive factors
Grafenia (SFT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£59.49M
Dividend YieldN/A
Average Volume (3M)276.53K
Price to Earnings (P/E)―
Beta (1Y)-0.33
Revenue Growth16.13%
EPS Growth-700.00%
CountryUK
Employees131
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding390,083,300
10 Day Avg. Volume344,707
30 Day Avg. Volume276,534
Financial Highlights & Ratios
PEG Ratio4.04
Price to Book (P/B)5.40
Price to Sales (P/S)6.32
P/FCF Ratio73.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Grafenia Business Overview & Revenue Model
Company Description
Software Circle plc, together with its subsidiaries, engages in the licensing of various software in the United Kingdom, Ireland, Europe, and internationally. Its brands and solutions include Link Maker, an adoption management software; Be the Bra...
How the Company Makes Money
Grafenia makes money primarily through its franchising activities and related services to its network. Key revenue streams include: (1) Franchise-related income: fees and charges associated with operating and supporting franchised print businesses...
Grafenia Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
58
Neutral
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.55M | 18.27M | 16.16M | 11.68M | 8.92M | 6.94M |
| Gross Profit | 599.00K | 13.25M | 10.19M | 5.75M | 3.54M | -559.00K |
| EBITDA | 2.95M | 4.82M | 1.36M | -265.00K | 172.00K | 772.00K |
| Net Income | -2.79M | -329.00K | -2.37M | -1.41M | -1.15M | -2.08M |
Balance Sheet | ||||||
| Total Assets | 38.62M | 38.10M | 34.39M | 23.62M | 11.76M | 13.58M |
| Cash, Cash Equivalents and Short-Term Investments | 4.80M | 8.57M | 15.39M | 1.99M | 1.46M | 2.74M |
| Total Debt | 11.87M | 10.80M | 9.13M | 18.72M | 0.00 | 7.08M |
| Total Liabilities | 18.23M | 16.70M | 12.71M | 22.69M | 9.27M | 9.33M |
| Stockholders Equity | 20.39M | 21.39M | 21.68M | 928.00K | 2.49M | 4.25M |
Cash Flow | ||||||
| Free Cash Flow | 2.68M | 1.57M | 1.42M | -142.00K | -438.00K | -507.00K |
| Operating Cash Flow | 2.71M | 2.94M | 2.63M | 308.00K | 134.00K | 212.00K |
| Investing Cash Flow | -9.70M | -7.97M | -5.28M | -8.72M | -575.00K | -842.00K |
| Financing Cash Flow | -897.00K | -1.79M | 16.05M | 8.94M | -708.00K | 2.27M |
Grafenia Technical Analysis
Negative
23.80
Price Trends
17.60
Negative
20.78
Negative
23.60
Negative
Market Momentum
-0.42
Negative
32.43
Neutral
25.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SFT, the sentiment is Negative. The current price of 23.8 is above the 20-day moving average (MA) of 15.49, above the 50-day MA of 17.60, and above the 200-day MA of 23.60, indicating a bearish trend. The MACD of -0.42 indicates Negative momentum. The RSI at 32.43 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SFT.
Grafenia Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | £280.23M | -0.96 | -12.22% | 15.28% | -3.91% | -310.36% | |
58 Neutral | £33.74M | 10.45 | 42.23% | 2.00% | -12.04% | ― | |
54 Neutral | £327.84M | 275.23 | 0.58% | 2.31% | 6.90% | 145.00% | |
52 Neutral | £59.49M | -17.61 | -13.36% | ― | 16.13% | -700.00% | |
41 Neutral | £320.89M | -2.81 | -142.88% | ― | -4.87% | ― |
* Industrials Sector Average
GB:SFT
Grafenia
15.25
-11.75
-43.52%
GB:CPI
Capita plc
268.00
93.10
53.23%
GB:CTG
Christie
132.50
46.60
54.25%
GB:RST
Restore
240.00
29.88
14.22%
GB:RWS
RWS Holdings
75.50
-23.77
-23.94%
Grafenia Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Software Circle director shifts stake into pension with no change in overall holding
Positive
Mar 27, 2026
Software Circle plc disclosed that director and company secretary Richard Alan Lightfoot transferred 36,769 ordinary shares from his personal holding into his self-invested personal pension on 26 March 2026, with matching sale and purchase volumes...
Business Operations and Strategy
Software Circle Sees Consolidation of Stakes by Value Funds
Positive
Mar 2, 2026
Software Circle plc has reported changes in several significant shareholdings, with Abacus Value Capital Fund AGmvK and Electa Value Capital Fund AGmvK increasing their stakes, while investor Wui Yen Liow has reduced his holding. Together, Abacus ...
Business Operations and StrategyRegulatory Filings and Compliance
Software Circle Executives Boost Stakes in Vertical Market Software Group
Positive
Feb 27, 2026
Software Circle plc has disclosed share purchases by its top executives, with CEO Gavin Graham Cockerill and CFO Iain Stewart Brown acquiring additional ordinary shares in the company. The transactions modestly increase their beneficial holdings, ...
Business Operations and Strategy
YOGRO GmbH Lifts Stake in Software Circle to 4.21%
Positive
Feb 23, 2026
Software Circle plc has disclosed a change in its shareholder base, with YOGRO GmbH increasing its holding from 13,079,627 to 16,429,627 ordinary shares, representing 4.21% of the company’s issued share capital. The move marginally concentra...
Business Operations and Strategy
Software Circle CEO Increases Stake with Share Purchase
Positive
Feb 18, 2026
Software Circle plc has disclosed that its chief executive officer, Gavin Graham Cockerill, purchased 29,341 ordinary shares at 17 pence each, increasing his beneficial holding to 168,118 shares, or about 0.04% of the company’s issued share ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.