Trading Update

RNS Number : 9386I

Xaar PLC

26 November 2008

 



FOR IMMEDIATE RELEASE

26 November 2008

Xaar plc

TRADING UPDATE

Xaar plc ('Xaar' or 'the Group'), the inkjet printing technology group headquartered in Cambridge, is issuing the following trading update.

In the Interim Management Statement dated 15 October 2008, the Board reported lower than planned revenues in Q3 largely on account of disappointing sales of its established Platform 1 product range to original equipment manufacturers in China.  Production levels were cut in line with this lower demand, with a reduced rate of overhead recovery contributing to margins and profits being below plan.   At the time of that announcement, the Board expected an improved performance in Q4, 2008 but, in light of the outlook for the global economy, expressed caution.

The global economy has suffered further substantial setbacks over the past two months. Although the Group's trading levels have not deteriorated since Q3, so far in Q4 there has been no improvement on the levels achieved in Q3.  Accordingly, margins and profits continue to be below plan and the results for 2008 as a whole are expected to be below current market expectations.

The Group continues to maintain a strong balance sheet with cash at 21 November 2008 of £9.4m (30 September 2008: £10.1m) and total debt of £0.7m (30 September 2008: £0.7m).

The Group's markets remain uncertain and difficult to predict. As previously announced the Group has  already implemented a series of cost saving measures, the benefits of which will be seen in 2009. The Board is continuing to review the cost base of the Group in order to ensure that levels of spend are in line with current economic realities whilst maintaining the skills and capabilities to ensure the Group is well placed for the future. 

Ends

CONTACTS

Xaar plc:	01223-423663
Ian Dinwoodie, Chief Executive	www.xaar.com
Andrew Taylor, Finance Director
Bankside Consultants:
Steve Liebmann	020-7367-8883 / 07802-888159

 

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