Period end update & new broke

RNS Number : 8495Y

Xaar PLC

11 July 2008

 



FOR IMMEDIATE RELEASE

11 July 2008

Xaar plc

HALF YEAR PERIOD-END TRADING UPDATE

and

CHANGE OF FINANCIAL ADVISER AND BROKER

Xaar plc ('Xaar' or 'the Company'), the inkjet printing technology group headquartered in Cambridge, presents an update on performance for the six months ended 30 June 2008, its intention to pay a maiden interim dividend and the appointment of a new financial adviser and broker.

TRADING

As previously indicated, revenues in the period were affected adversely by a slowdown in sales of Xaar Platform 1 products into China.  Sales of Platform 2 and Platform 3 products continue to show good progress with continuing sales of 'developer kits' and a significant number of new product launches at the recent 'DRUPA' international trade show.  

Revenue for the six months to 30 June 2008 was approximately £22.5m (six months to 30 June 2007: £23.4m).  Profit before tax for the period was approximately £3.8m (30 June 2007: £3.1m), after providing for amortisation of capitalised R&D of £0.5m (30 June 2007: £0.5m) and the cost of share based payments of £0.5m (30 June 2007: £0.4m).  

At the time of the last communication to the market on 23 May 2008, the Board was confident that results for 2008 as a whole would be in line with the market consensus for the year.  The Board now expects full year results for 2008 to be more in line with those for 2007 and, therefore, below the current market consensus. This is due to two factors. First, trading for Platform 1 products in China is continuing to be weaker than expected. This is a reflection of the increasing maturity of this market with slower growth and increasing competition, primarily from Xaar licensees. Secondly, negotiations on a potentially significant agreement were ended due to adverse economic conditions affecting the third party. These discussions had been going on for some eighteen months and the Board was expecting an imminent successful outcome at the time of the last trading update.

CASH

Cash at the end of June was approximately £10.7m (30 June 2007: £10.0m).  This reflects the payment of the final dividend for 2007 of £1.5m (final dividend for 2006: £1.2m) and capital expenditure on tangible and intangible assets of approximately £2.5m.

INTERIM DIVIDEND

It is the Board's intention to pay an interim dividend of 1.0p per share. This will be the first interim dividend to be paid by the Company; hitherto a single final dividend has been paid and was 2.5p for 2007. 

The Board now expects its dividend payment policy to be a split of approximately one third/two thirds between the interim and final payments, subject to performance.

CHANGE OF ADVISER

The Board also announces that Landsbanki Securities (UK) Limited has been retained as the Company's new financial adviser and broker with immediate effect.

ANNOUNCEMENT OF INTERIM RESULTS

The detailed interim results will be announced in accordance with Xaar's revised timetable on 20 August 2008.

Ends

CONTACTS

Xaar plc:	01223-423663
Ian Dinwoodie, Chief Executive	www.xaar.com
Andrew Taylor, Finance Director
Landsbanki Securities (UK) Ltd	020-7426-9000
Shaun Dobson or Dan Webster
Bankside Consultants:
Steve Liebmann or Simon Bloomfield	020-7367-8883 / 07802-888159

 

END

 

 

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