Xaar PLC Trading Update (0521G)
22 Julio 2021 - 1:00AM
UK Regulatory
TIDMXAR
RNS Number : 0521G
Xaar PLC
22 July 2021
Xaar plc
Trading Update
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 2021.
TRADING
The Board is pleased to announce that trading for the six months
ended 30 June 2021 has been in line with its expectations. Revenue
for the period is expected to be approximately GBP26 million,
representing an increase of 11% and 8% relative to H1 and H2 2020
respectively.
The Printhead business continues to perform well following the
ongoing successful roll out of the ImagineX platform and launch of
the Xaar Nitrox printhead in April, which is attracting new
customers and increased opportunities to broaden the offering in
applications where our products are market leading. Whilst we are
seeing some COVID-19 related supply constraints, we are taking the
required actions to mitigate their impact and continue to be
optimistic on the future trading environment.
Revenues for the Product Print Systems business (EPS) are in
line with management expectations, being below that achieved in H1
2020. Whilst the underlying performance remains on track and the
business continues to be profitable, H1 2021 results have been
impacted by non-cash adjustments relating to slow moving and
obsolete inventory following the implementation of planned process
improvement and strategy actions announced at our full year
results.
Negotiations to divest Xaar's interest in Xaar 3D are now at an
advanced stage and a further update will be announced to
shareholders in due course.
BALANCE SHEET AND LIQUIDITY
The Group retains a strong balance sheet and cash position. Net
cash at 30 June 2021, excluding cash from the 3D business (which is
classified as an asset held for sale) was GBP17.1 million. This
represents a decline of GBP1.0 million in net cash for continuing
operations since 31 December 2020, which has been primarily driven
by planned capital investment, including the relocation of Xaar's
Cambridge office which will generate GBP0.7 million of annual cost
savings. The Group maintains a strong cash focus and disciplined
cost controls.
TRADING OUTLOOK
Whilst the COVID-19 pandemic continues to have a wider economic
impact, our short-term outlook remains positive with a healthy
order book across the business. We continue to focus on
implementing our strategy to enable future growth and remain
on-track to return to profitability in the medium term.
We announced on 12 July 2021 the acquisition of FFEI Limited
("FFEI"), a leading integrator and manufacturer of industrial
digital inkjet systems and digital life science technology. The
addition of FFEI strengthens Xaar's capabilities and skills and
will accelerate Xaar's existing growth strategy.
John Mills, Chief Executive Officer, commented:
"We are pleased with our continued good performance which shows
the positive momentum we have in the business. Our strong
foundations remain, and we continue to gain new customers and see
positive re-engagement with the business as our strategy is proving
to work. We are investing in capability and capacity to drive
future growth and the addition of FFEI to the Group will provide us
with further opportunities to grow the business and accelerate our
strategy."
Enquiries:
Xaar plc +44 (0) 1223 423 663
Ian Tichias, Chief Financial Officer
John Mills, Chief Executive Officer
Tulchan Communications
James Macey White
Giles Kernick +44 (0) 207 353 4200
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END
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