REG - Xaar PLC - Trading Update

XaarAnnouncement

03/08/2023 07:00

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RNS Number : 0903I  Xaar PLC  03 August 2023

3 August 2023

 

Xaar plc

 

TRADING UPDATE

 

Xaar plc ("Xaar" or "the Group"), the leading inkjet printing technology
group, today announces a trading update for the six months ended 30 June 2023.

 

TRADING

 

Continued strong trading - in line with expectations

 

·    Revenue for the period anticipated to be £34.7 million (H1 2022:
£36.6 million).

·    Adjusted profit before tax in line with management expectations, with
the impact of the successful factory re-organisation offset by the planned
sale of £1.8 million of non-core IP assets.

 

Further strategic and operational progress

 

·    Increasing number of customers developing products using Aquinox with
product launches expected in H2 2023.

·    Commercial partnership with Quantica announced on 5 July 2023
enhances the Group's position in leading the market in printing highly viscous
fluids.

·    Phase one of factory efficiency programme completed on time and
within budget.

·    Product Print Systems business ("EPS") delivered a strong performance
in the period with both revenue and margin growth.

 

 

BALANCE SHEET

 

The Group remains well capitalised with a strong balance sheet and with a net
cash position as at 30 June 2023 of £7.3 million (30 June 2022: £12.6
million) in line with management expectations, reflecting the previously
communicated investment in inventory predominantly in H2 2022.

 

 

OUTLOOK

 

·    Market conditions expected to improve further in China in H2 and
coupled with increased customer product launches will increase demand for Xaar
printheads.

·    Our strategy to diversify across a range of market sectors means
further product launches are expected in 2024 providing confidence in
delivering our mid-term growth plans.

·    Previous investment in inventory holding means the Group is well
placed to capitalise on further commercial opportunities.

·    While remaining vigilant to broader macroeconomic conditions the
Board continues to expect to deliver its expectations for the full year.

 

 

John Mills, Chief Executive Officer, commented:

 

"We remain focused on the delivery of our strategy and taking advantage of the
significant opportunities we have that will drive profitable growth. Our
products continue to generate strong interest from customers, demonstrating
our leadership in printing highly viscous fluids with all the sustainability
benefits they can deliver. We have positive momentum, a growing product
pipeline and look forward to continuing to accelerate our strategy and
performance in H2 and into 2024."

 

 

 

Note: Adjusted profit before tax is profit before tax excluding the impact of
share-based payment charges, exchange differences relating to intra-group
transactions, gain on derivative financial instruments, restructuring and
transaction expenses, research and development expenditure credit, fair value
gain on financial assets at fair value through profit and loss, and
amortisation of acquired intangible assets.

 

 

Enquiries:

 

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

 Teneo                                 +44 (0) 207 353 4200
 Giles Kernick
 Olivia Lucas

 

 

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