Trading Update

Xaar PLC

03 August 2023

 

3 August 2023

Xaar plc

TRADING UPDATE

Xaar plc ("Xaar" or "the Group"), the leading inkjet printing technology group, today announces a trading update for the six months ended 30 June 2023.

TRADING

Continued strong trading - in line with expectations

·    Revenue for the period anticipated to be £34.7 million (H1 2022: £36.6 million).

·    Adjusted profit before tax in line with management expectations, with the impact of the successful factory re-organisation offset by the planned sale of £1.8 million of non-core IP assets.

Further strategic and operational progress

·    Increasing number of customers developing products using Aquinox with product launches expected in H2 2023.

·    Commercial partnership with Quantica announced on 5 July 2023 enhances the Group's position in leading the market in printing highly viscous fluids.

·    Phase one of factory efficiency programme completed on time and within budget.

·    Product Print Systems business ("EPS") delivered a strong performance in the period with both revenue and margin growth.

BALANCE SHEET

The Group remains well capitalised with a strong balance sheet and with a net cash position as at 30 June 2023 of £7.3 million (30 June 2022: £12.6 million) in line with management expectations, reflecting the previously communicated investment in inventory predominantly in H2 2022.

OUTLOOK

·    Market conditions expected to improve further in China in H2 and coupled with increased customer product launches will increase demand for Xaar printheads.

·    Our strategy to diversify across a range of market sectors means further product launches are expected in 2024 providing confidence in delivering our mid-term growth plans.

·    Previous investment in inventory holding means the Group is well placed to capitalise on further commercial opportunities.

·    While remaining vigilant to broader macroeconomic conditions the Board continues to expect to deliver its expectations for the full year.

John Mills, Chief Executive Officer, commented:

"We remain focused on the delivery of our strategy and taking advantage of the significant opportunities we have that will drive profitable growth. Our products continue to generate strong interest from customers, demonstrating our leadership in printing highly viscous fluids with all the sustainability benefits they can deliver. We have positive momentum, a growing product pipeline and look forward to continuing to accelerate our strategy and performance in H2 and into 2024."

Note: Adjusted profit before tax is profit before tax excluding the impact of share-based payment charges, exchange differences relating to intra-group transactions, gain on derivative financial instruments, restructuring and transaction expenses, research and development expenditure credit, fair value gain on financial assets at fair value through profit and loss, and amortisation of acquired intangible assets.

Enquiries:

Xaar plc	[phone]
Ian Tichias, Chief Financial Officer
John Mills, Chief Executive Officer
Teneo	[phone]
Giles Kernick
Olivia Lucas

 

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