(Alliance News) - Xaar PLC on Thursday said it expects interim revenue to jump, leaving the firm on track to meet annual forecasts.
For the six months ended June 30, the Cambridge, England-based inkjet printing technology company said revenue is expected to be around GBP37 million, representing an increase of 41% compared to GBP26.3 million the year before.
Net cash at June 30 stood at GBP12.6 million, in line with expectations. This is down 26% from GBP17.1 a year ago. The company acquired Megnajet, a manufacturer of industrial ink management, and invested in some key capital projects as well as increasing working capital to "protect the group's supply chain and ability to deliver products on time," it explained.
Chief Executive Officer John Mills said: "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. 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."
The company said its Printhead division performed well with strong growth in Europe and the US, which offset a Covid-related slowdown in China.
Looking ahead, Xaar said it is on track to report an adjusted profit for the current year in line with its expectations as a result of strong revenue growth alongside improved gross margins and cost management actions.
Shares were up 1.7% at 190.20 pence each on Thursday morning in London.
By Xindi Wei; xindiwei@alliancenews.com
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Xaar (XAR)