(Alliance News) - Xaar PLC on Thursday reported a revenue fall and much-widened loss in 2019, but added it is yet to see a fall in customer demand due to the Covid-19 outbreak.
In addition, Xaar said it was suspending financial guidance because of continued uncertainty associated with Covid-19.
Revenue was 18% lower in 2019 at GBP49.4 million from GBP60.5 million. Xaar's pretax loss ballooned to GBP71.9 million from GBP15.1 million.
The inkjet printhead supplier also decided against paying a dividend, having made 1.0 pence in payouts in 2018.
Chief Executive Officer John Mills said: "2019 has been a difficult year for the group as a result of the performance of the Printhead business and decision to end investment in Thin Film."
During the year, Xaar said it has ceased further developmental investment in the Thin Film platform, with costs now at the minimum level to satisfy existing customer requirements. The company said it is exploring the possibility of monetisation of this technology.
Xaar booked GBP39.0 million in impairments in 2019, up from GBP3.3 million in 2018.
CEO Mills added: "With a strong balance sheet and net cash we have the appropriate level of funding to deliver improved business performance. We have the fundamentals in place with a new management team executing a strategy to return to profitability and deliver sustainable growth for the long term.
"Subsequent events with the rise of the Covid-19 virus and measures taken to stem its spread worldwide means it is impossible to determine the impact on Xaar's 2020 results. While we are yet to see a significant impact on customer demand it is too early to predict what effect the virus will have over the remainder of the year."
Xaar shares climbed 19% to 41.00 pence each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Xaar (XAR)