Interim Management Statement

RNS Number : 6219Q

Xaar PLC

16 April 2009

 



FOR IMMEDIATE RELEASE

16 April 2009

Xaar plc

INTERIM MANAGEMENT STATEMENT

Xaar plc ('Xaar' or 'the Group'), the inkjet printing technology group headquartered in Cambridge, is providing an Interim Management Statement covering trading from 1 January 2009 to 31 March 2009. 

Trading for the first quarter of the year, historically the Group's quietest trading period due to the Chinese New Year holiday in February, was in line with the Board's expectations at a level similar to that for Q1, 2008 and was stable at the levels seen in the third and fourth quarters of 2008.

The first of Xaar’s new second generation Platform 1 products, the Xaar Proton, was successfully launched during the period at the Sign China show in Guangzhou. Following the launch, sales of the Proton into China have been ahead of the Board’s expectations. The Proton will be released into India and Latin America during the course of 2009 as the Group’s OEM customers in those regions launch new printing machines incorporating the printheads. The Xaar Electron, the second new Platform 1 product, remains on course for its launch in customer printing machines at the Shanghai Ad show in early July.

Original Equipment Manufacturers in western markets continue to launch printing machines based on Xaar's Platform 3 (P3) technology with further product launches during the period. Whilst the number of OEM customers bringing printing machines based on P3 technology to market is encouraging, the transition from product launch to volume sales remains slow and cannot be expected to be immune from the effects of the global economic situation.

The Group has maintained its strong balance sheet throughout the period with gross cash at 31 March 2009 of £12.4m (31 December 2008: £11.6m).  Total debt at 31 March 2009 was £0.6m (31 December 2008: £0.6m).  The cash inflow during the period reflects both stable trading and the benefits of previously announced cost saving measures.  

On 1 April 2009 the Group announced the rationalisation of its manufacturing facilities which will involve the eventual closure of its plant in Stockholm, Sweden and the relocation of that manufacturing capability to the Group's manufacturing facility in Huntingdon, England. This process is expected to take up to two years to complete and is expected to result in a substantial reduction in the Group's cost base.

The Board is encouraged by trading in Q1 but, given both a continuing lack of visibility of customer orders and the current uncertainty in the business environment due to the ongoing global economic situation, must remain cautious when looking forward. 

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

 

END

 

 

IMSBSGDSDBBGGCU