REG - Xaar PLC - Trading Update

XaarAnnouncement

12/01/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230112:nRSL4516Ma&default-theme=true

RNS Number : 4516M  Xaar PLC  12 January 2023

 

 

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 2022.

 

TRADING

Strong revenue growth and full-year profitability

·    Revenue for the period is expected to be approximately £74 million
(2021: £59.3 million), representing year on year growth of 24% driven by a
combination of organic growth (9%) and acquisitions

 

·    The Group is expected to deliver an on track adjusted profit for the
year

 

·    During 2022 the Group continued to invest in working capital and
infrastructure development and in March completed the acquisition of Megnajet

 

 

Further operational and strategic progress

·    Further progress was made throughout the year in implementing the
strategy to achieve long-term profitable growth

 

·    Successful launch of Aqueous printhead product in November 2022 as
planned, and on budget, is receiving strong customer engagement

 

·    Factory reorganisation commenced in December and is progressing well
and on schedule for completion by March 2023. This project is expected to
deliver increased efficiency, reduce power usage, and reduce costs

 

·    The integration of recent acquisitions (FFEI and Megnajet) has been
completed successfully and both are contributing positively to Group results

 

·    Continued progress at EPS delivered its best performance to date with
revenue growth of 36%

 

 

Challenging macro conditions expected to continue into 2023

·    Sales volumes in the Printhead business continue to be affected by
the uncertainty in China, which is expected to continue in the short term as
Covid cases increase. At this stage it remains unclear when normal levels of
business will return

 

·    We have maintained our policy of increased investment in inventory to
ensure availability of product during the factory reorganisation in Q1 2023
and the remainder of the year

 

BALANCE SHEET AND LIQUIDITY

·    The Group remains well capitalised with a strong balance sheet with a
net cash position as at 31 December 2022 of £8.6 million

 

 

John Mills, Chief Executive Officer, commented:

"I am hugely proud of the team in delivering a strong performance and making
further progress with our strategy. We expect to deliver strong profitable
revenue growth and the important milestone of achieving full year
profitability representing great progress against our plan and remain well
positioned for the business to achieve its exciting potential.

Aquinox has been successfully launched and is already being well received by
our customers. With the operational improvements now well underway,
notwithstanding the challenging external environment, the business is in good
shape to continue to make further progress over the long term."

 

 

 

 

 

 

 

 

 

 

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

 Giles Kernick

 Olivia Lucas

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTSFIFWFEDSEDF