REG - Xaar PLC - Trading Update

XaarAnnouncement

14/07/2022 07:00

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RNS Number : 4114S  Xaar PLC  14 July 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 six months ended 30
June 2022.

 

 

TRADING

 

Continued strong trading and momentum

 

·    Revenue for the period is expected to be approximately £37 million,
representing an increase of 41% relative to H1 2021 (14% organic excluding
FFEI and Megnajet) and 12% relative to H2 2021 (11% organic excluding
Megnajet)

 

·    Strong revenue growth with improved gross margins and successful cost
management actions mean the Board expects the Group to be on track to report
an adjusted profit for the current year in line with its expectations

 

Further operational and strategic progress across the Group

 

·    Printhead division performed well with strong growth in Europe and US
offsetting a Covid-related slowdown in China. We remain on track for the
aqueous printhead launch in Q4 2022

 

·    The new printbar product developed by FFEI, Xaar Versatex, was
successfully launched, whilst the acquisition of Megnajet further strengthens
the Group's vertical integration capability

 

·    Product Print Systems business ("EPS") delivered a strong, improved
performance with revenue and margin growth

 

Successfully mitigating cost inflation

 

·    Further investment in inventory has allowed the Group to successfully
mitigate cost inflation and increases supply chain resilience

 

·    Sales price increases have further  assisted in off-setting the
effects of cost inflation

 

·    Additional management initiatives are helping in reducing costs and
increasing operational efficiency while cutting energy use supporting Xaar's
'net zero' commitments

 

 

BALANCE SHEET AND LIQUIDITY

 

The Group remains well capitalised with a strong balance sheet and cash
position. Investment has been made in acquiring Megnajet and key capital
projects together with increasing working capital to protect the Group's
supply chain and ability to deliver products on time. Net cash at 30 June
2022, was £12.6 million, in line with management expectations.

 

 

John Mills, Chief Executive Officer, commented:

 

"We are really pleased to have achieved a strong performance in the first half
of the year in line with our expectations. We are on target, seeing positive
momentum continuing to improve performance across the Group.

 

We continue to make strategic and operational progress and remain on track to
delivering long-term profitable growth.

 

Despite a continued uncertain macro-economic outlook, we remain confident and
excited by the future and look forward to the launch of our aqueous printhead
later in the year."

 

 

 

Enquiries:

 

Xaar plc

+44 (0) 1223 423 663

Ian Tichias, Chief Financial Officer

John Mills, Chief Executive Officer

 

Tulchan Communications

Giles Kernick

Olivia Lucas

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