Xaar plc ("Xaar", the "Group" or the "Company"), the leading inkjet printing technology group, today announces a trading update for the six months ended 30 June 2022.
Continued strong trading and momentum
· Revenue for the period is expected to be approximately £37 million, representing an increase of 41% relative to H1 2021 (14% organic excluding FFEI and Megnajet) and 12% relative to H2 2021 (11% organic excluding Megnajet)
· Strong revenue growth with improved gross margins and successful cost management actions mean the Board expects the Group to be on track to report an adjusted profit for the current year in line with its expectations
Further operational and strategic progress across the Group
· Printhead division performed well with strong growth in Europe and US offsetting a Covid-related slowdown in China. We remain on track for the aqueous printhead launch in Q4 2022
· The new printbar product developed by FFEI, Xaar Versatex, was successfully launched, whilst the acquisition of Megnajet further strengthens the Group's vertical integration capability
· Product Print Systems business ("EPS") delivered a strong, improved performance with revenue and margin growth
Successfully mitigating cost inflation
· Further investment in inventory has allowed the Group to successfully mitigate cost inflation and increases supply chain resilience
· Sales price increases have further assisted in off-setting the effects of cost inflation
· Additional management initiatives are helping in reducing costs and increasing operational efficiency while cutting energy use supporting Xaar's 'net zero' commitments
BALANCE SHEET AND LIQUIDITY
The Group remains well capitalised with a strong balance sheet and cash position. Investment has been made in acquiring Megnajet and key capital projects together with increasing working capital to protect the Group's supply chain and ability to deliver products on time. Net cash at 30 June 2022, was £12.6 million, in line with management expectations.
John Mills, Chief Executive Officer, commented:
"We are really pleased to have achieved a strong performance in the first half of the year in line with our expectations. We are on target, seeing positive momentum continuing to improve performance across the Group.
We continue to make strategic and operational progress and remain on track to delivering long-term profitable growth.
Despite a continued uncertain macro-economic outlook, we remain confident and excited by the future and look forward to the launch of our aqueous printhead later in the year."
+44 (0) 1223 423 663
Ian Tichias, Chief Financial Officer
John Mills, Chief Executive Officer