Trading update & revised date for interim results

RNS Number : 9703K

Xaar PLC

03 September 2019

 

Xaar plc

Trading update and revised date for interim results 

Xaar plc ("Xaar" or the "Group") provides an update on trading and notifies a revised date for presentation of interim results and an update on its strategic review of the Thin Film business.

Revenue in the first half year to 30 June 2019 was £22.5 million, as previously announced, including the impact of a £4.3 million revenue reversal relating to Xaar 1201 Thin Film printhead inventory being returned to the business. As part of the interim results process, a review of the Group's holding of Xaar 1201 printhead inventory and near term prospects for sale has taken place which has resulted in a reassessment of realisable value. We now consider it prudent to make a provision of £5.7 million which will be reflected in our first half results.

Trading for the remainder of the year is expected to be weaker than previously anticipated.  This is principally due to lower sales volumes of Xaar 1201 and Xaar 2001 printheads as a result of slower than expected new printer installs by OEMs and credit and sales channel issues on Xaar 1201. As a result, the Board now expects sales in the second half of the year to be similar to those in the first half.

The Group had net cash balances at 30 June 2019 of £21.6 million.

Management continues to focus on its strategic negotiations and expects that some additional time could enable the Board to provide a more meaningful update on progress, including any effect this may have on our interim results statement. Hence we are deferring the announcement of our interim results to 26 September from the previously announced date of 10 September.

Enquiries:

Xaar plc	[phone]
Doug Edwards, Chief Executive Officer Shomit Kenkare, Chief Financial Officer
Tulchan Communications	[phone]
James Macey White David Ison

About Xaar
Xaar is a world leader in the development of digital inkjet technology. Our technology drives the conversion of analogue printing and manufacturing methods to digital inkjet which is more efficient, more economical and more productive than the traditional methods which have been in use for years. We design and manufacture printheads as well as systems for product decoration and industrial 3D Printing which use our inkjet technology. We are the only truly independent inkjet technology company with over 25 years of know how. We offer unrivalled inkjet expertise including technology and printhead design and development, and manufacture highly customised product decoration systems and industrial 3D Printing for volume manufacturing. Our unique technologies and products are the leading enabler for innovation and for driving supply chain efficiencies for many industries. Information about Xaar is at www.xaar.com

 

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