(Alliance News) - Xaar PLC on Wednesday said it has an "exciting" future as its loss narrows and expects a return to profitability in the medium term.
The inkjet printhead supplier posted a pretax loss for the first half ended June 30 of GBP1.1 million, narrowing from GBP2.9 million a year prior.
Revenue was down 7.1% to GBP23.7 million from GBP25.5 million a year before.
Chief Executive John Mills said: "We are very pleased with these results; they demonstrate the business is on track and our new strategy is working despite the unprecedented economic backdrop. It is particularly gratifying to see us win new business as we re-engage with customers in our core markets.
"There has been a positive reaction by customers and employees alike to our new commercial model. In addition, with the next generation of products in our roadmap and the rollout of our new corporate brand, we believe Xaar has an exciting future."
No dividend was declared for the period, equal to the year prior.
Going forward, Mills said that it is difficult to assess the performance for the remainder of the year due to the impact of COVID-19.
Mills added however: "The short-term outlook is positive; with our order book remaining strong across the business coupled with a strong balance sheet and cash position for the group, we are well placed to withstand volatility in the market.
"The success we have had in the first half of the year leaves the business well-positioned. The foundations that are being laid at present will provide a springboard for future growth and a return to profitability in the medium term."
Xaar shares were up 8.7% at 100.00 pence each in London on Wednesday morning.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Xaar (XAR)