LONDON (Alliance News) - Shares in inkjet technology firm Xaar PLC fell Monday as it cautioned on some extra provisions to be booked in its 2018 results.
Shares were down 11% on Monday morning at 120 pence each. The stock is down 59% in the last 12 months.
For 2018, Xaar is guiding for revenue of GBP63.5 million, and net cash of GBP27.9 million at the end of the year.
In 2017, revenue was GBP100.1 million, while its net cash was GBP44.7 million at the end of 2017.
However, after a review, Xaar is to increase inventory and debtor provisions by GBP7 million.
"The previously reported delays in ramp of new product volumes in China have resulted in an unfavourable working capital ageing profile, and as a result provisions are being taken on the basis of prudency in line with standard accounting practice," said Xaar.
"The integration issues experienced leading to the delays are now behind us and sell-through is expected to increase. Furthermore, the minimum volume commitments from our supplier have now been met."
Xaar will release 2018 results on March 21, when it will also update on its review of its Printhead unit's partnering strategy.
Xaar (XAR)