REG - Xaar PLC - Trading Update

XaarAnnouncement

13/01/2022 07:05

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RNS Number : 2847Y  Xaar PLC  13 January 2022

 

 

Xaar plc

 

Trading Update

 

Xaar plc ("Xaar", "the Group" or "the Company"), the leading inkjet printing
technology group, today announces a trading update for the year ended 31
December 2021.

 

 

TRADING

 

Ended the year strongly with further operational and strategic progress

·    Revenue for the year is expected to be approximately £59 million,
representing an increase of 23% relative to 2020. Organic growth before the
effects of the acquisition of FFEI was 12%

·    Strong revenue growth and cost management actions mean the Board
expects to report an adjusted profit for the second half of the year

 

Commercially and operationally on track

·    Printhead business performed well with on-going engagement with new
customers and re-engagement with previous customers. We continue to
successfully roll out the ImagineX platform and launched two new products;
Xaar Nitrox in April 2021 and Xaar Irix in September 2021 and will continue to
strengthen our offering with more products in the pipeline for 2022

 

·    FFEI has been successfully integrated and strengthens Xaar's
capabilities and skills. This will accelerate Xaar's existing growth strategy
and widen the product portfolio further engaging UDI (User Developer
Integrator) customers

 

·    Product Print Systems business ("EPS") delivered improved performance
demonstrating strong revenue growth following the effective implementation of
operational changes and progress in developing a modular approach to products.
As previously announced the 2021 results were impacted by non-cash adjustments
relating to slow moving and obsolete inventory following the implementation of
planned process improvement and strategy

 

Strengthened supply chain position

·    Investment in inventory of £7 million in the year to successfully
secure materials to meet expected 2022 production requirements

 

·    Further proactive actions taken to adapt product designs to
accommodate alternative components increasing our resilience to supply chain
constraints

 

 

 

BALANCE SHEET AND LIQUIDITY

 

The Group retains a strong balance sheet and cash position. Net cash at 31
December 2021 was £25.2 million. This represents an improvement of £7.1
million in net cash since 30 June 2021, which has been primarily driven by the
£9.3 million initial consideration received for the Xaar 3D divestment and
continued strong cash generation in our Printhead business.

 

 

 

We will provide more detail of both 2021 results and outlook for 2022 in our
full year results announcement.

 

 

John Mills, Chief Executive Officer, commented:

"We ended the year well with an improved second half performance which shows
the positive momentum we have in the business. Strong order intake over the
last few months gives us confidence of maintaining this momentum into 2022.
The investment in working capital gives increased certainty in our ability to
maintain supply to our customers throughout the year, a year in which we
expect to see further growth. We will continue to invest in capability and
capacity to drive growth and deliver further opportunities to grow the
business and accelerate our strategy."

 

 

 

Enquiries:

 

 Xaar plc                              +44 (0) 1223 423 663
 Ian Tichias, Chief Financial Officer
 John Mills, Chief Executive Officer
                                       +44 (0) 207 353 4200

 Tulchan Communications

 James Macey White

 Giles Kernick

 

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