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(Alliance News) - Xaar PLC on Wednesday said it anticipates flat profit and revenue in 2023, but both will fall short of expectations in 2024, citing delays in customer product launches and weakened demand.
Xaar shares fell 26% to 131.04 pence in response on Wednesday morning in London.
The Cambridge, England-based industrial inkjet manufacturer said it believes 2023 adjusted pretax profit will be between GBP2.5 and GBP3 million, which is ahead of board expectations and similar to 2022's GBP2.8 million.
However, due to "challenging" trading conditions in the second half, annual revenue for 2023 is expected between GBP70 and GBP72 million, slightly behind 2022's GBP72.8 million.
Xaar expects weaker demand to persist in the final quarter of this year and into 2024, so both revenue and profit will fall short of expectations next year. "Together with delays in some customer product launches, [this] will result in lower revenue and adjusted profit in 2024 than previously anticipated," it cautioned.
Chief Executive Officer John Mills said: "Whilst the external trading environment is challenging, 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 performance and sustainability benefits they deliver."
He added: "Due to the current geo-political and macro conditions, bringing these products to market is taking longer than expected, however, we are optimistic about the future, and we are well placed to benefit as trading conditions improve."
By Tom Budszus, Alliance News slot editor
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