(Alliance News) - Xaar PLC on Thursday said its first half performance has been in line with its expectations as the inkjet printing firm's new offerings attracted new customers.
Revenue for the six months ended June 30 is expected to be approximately GBP26 million, representing an increase of 9.7% from GBP23.7 million a year ago.
The Printhead business continues to perform well following the ongoing roll out of the ImagineX platform and launch of the Xaar Nitrox printhead in April, which are both attracting new customers, the firm said.
ImagineX is Xaar's new bulk printhead platform, while the Xaar Nitrox printhead is the company's latest addition to its printhead offerings.
Revenue for the Product Print Systems business are in line with management expectations. While the business continues to be profitable, the company noted that the segment's first half results have been impacted by non-cash adjustments relating to obsolete inventory following a "planned process improvement".
Net cash at June 30 was GBP17.1 million, representing a decline of 6.2% from GBP16.1 million at December 31, 2020. The decline was primarily driven by planned capital investment, including the relocation of Xaar's Cambridge office which will generate GBP700,000 million of annual cost savings, the company noted.
"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," the company said.
Xaar last Monday acquired UK inkjet systems peer FFEI Ltd, which strengthens Xaar's capabilities and will accelerate its existing growth strategy.
Shares in Xaar were up 1.9% at 198.40 pence each in London on Thursday afternoon.
By Amrit Sahota; newsroom@alliancenews.com
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Xaar (XAR)