Trading Statement

RNS Number : 9904H

Xaar PLC

19 July 2012

 



FOR IMMEDIATE RELEASE

19 July 2012

Xaar plc

TRADING UPDATE

Xaar plc ("Xaar", the "Company" or the "Group"), the inkjet printing technology group headquartered in Cambridge, today presents an update on trading performance for the period ended 30 June 2012.

Sales for the period were in line with the Board's expectations, with revenue of approximately £38 million; 20% higher than the same period in 2011.

The ceramic tile printing sector provided the largest contribution to the growth in revenue, where demand continues to grow.  As expected, sales into the graphics arts sector were down on the same period in 2011, reflecting the maturity and competitiveness of that segment.

Xaar's position in the ceramic tile printing sector has been strengthened by the successful launch in May of its 1001 GS12 printhead which is expected to achieve volume sales from the third quarter of 2012 onwards.

Margins in the first half of the year were slightly ahead of expectations as a result of the successful deferral of previously forecast volume price discounts in the ceramics segment.  The price discounts will impact the second half of the year, but are expected to be offset by the benefits of higher production volumes.

The £22 million capacity expansion programme announced in 2010 to support demand in the ceramic sector has now been successfully completed with capacity currently at 45,000 units compared to 5,000 units at the beginning of the programme.

The Group continues to maintain a strong balance sheet with net cash at 30 June 2012 of £15.7 million (31 December 2011 - £17.4 million).

The full interim results are expected to be announced on Thursday 16 August 2012.

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CONTACTS

Xaar plc:	01223-423663
Ian Dinwoodie, Chief Executive	www.xaar.com
Alex Bevis, Finance Director
Singer Capital Markets Limited:	020-3205-7500
Shaun Dobson
Bankside Consultants:
Simon Bloomfield James Irvine-Fortescue	020-7367-8888 / 07771-758517

 

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