Good afternoon!

Apologies, but I'm running late today, so am slowly updating this article, and will continue doing so this afternoon/evening.

In the meantime, I was burning the midnight oil last night, reporting on 6 more companies' results, so 9 in total. Therefore, here is the full report from yesterday.



Today I have looked at results & trading updates from;

Xaar (LON:XAR)

James Cropper (LON:CRPR)

Eckoh (LON:ECK) (major contract win)

Quixant (LON:QXT)

Cello (LON:CLL)

eg Solutions (LON:EGS)

Cloudbuy (LON:CBUY)

Van Elle Holdings (LON:VANL)





Xaar (LON:XAR)

Share price: 335p (down 7.1% today)
No. shares: 77.7m
Market cap: £260.3m

Final results - for the year ended 31 Dec 2016.

This company makes innovative inkjet printheads, for commercial use. The core issue here is that the company has been heavily reliant on one sector - namely print heads for ceramic tile printing, where demand comes from China. Competition has been increasing, so this area is under pressure. Therefore the challenge for Xaar is to develop new products, and indeed it is spending a lot on R&D, and has some very interesting new products in the pipeline.

In the meantime though, results are not exactly sparkling. A few points;

Revenues rose by 2.9% to £96.2m, but this was after including £6.7m from an acquisition of a company called EPS, which is included in the P&L figures from 1 Jul 2016. Strip that out, and organic revenues fell by 4.3%

Adjusted operating profit margin is still strong, at 20% (2015: 22%). Although note that the company changed its accounting policies a while back to be much more aggressive about capitalising development spend. Contrary to what some people seem to think, there is plenty of leeway here to interpret accounting standards, so companies which aggressively capitalise development spend have usually chosen to do so.

Diluted adjusted EPS fell from 24.5p in 2015 to 21.2p in 2016. That gives a PER of 15.8. That may seem good value for a tech company, but earnings are falling. So the key issue is whether this level of earnings is sustainable?

Balance sheet - very…

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