Xaar Regulatory News (XAR)

15 Jul 2009 07:00



Xaar plc

HALF YEAR PERIOD-END TRADING UPDATE

TRADING

Xaar plc ("Xaar" or "the Company"), the inkjet printing technology group headquartered in Cambridge, presents an update on performance for the six months ended 30 June 2009.

Trading in the period was in line with the Board's expectations and, whilst behind the first half of last year, continued to improve from the levels seen in the second half of 2008.

Revenue for the six months to 30 June 2009 was approximately £20.9m (six months to 30 June 2008: £22.5m; six months to 31 December 2008: £19.5m). Adjusted profit before tax* for the period was approximately £1.3m (six months to 30 June 2008: £4.0m; six months to 31 December 2008: loss of £0.2m).

Net cash at 30 June 2009 was approximately £10.3m (31 December 2008: £11.0m; 30 June 2008: £9.9m). This is after the payment of the final dividend for 2008 of £0.9m. 

Trading across the Company's sales regions has varied during the period. Sales to Asia have made a reasonable recovery from their low point in late 2008. Trading in the Americas region improved relative to both the first and second half of last year, but sales into Europe have continued to decline.

Digital printing machine manufacturers announced a further 10 printing machines in the period incorporating Xaar's Platform 3 technology.  These have been mainly in Europe and North America and, as previously stated, the Board expects the transition from product launch to volume sales to be slower than originally expected in the current economic environment. These new printing machines cover diverse applications ranging from high speed label printing through to industrial/ceramics printing.

Following the announcement in March of the decision to rationalise the Company's manufacturing capability, the relocation process has started and is on track to be complete within the originally planned timescale.

Whilst the Board is encouraged by trading volumes in the period, the continuing lack of visibility and uncertainty in the economic environment means that the Board still remains cautious when looking forward.

INTERIM DIVIDEND

It is the Board's intention to pay an interim dividend, details of which will be provided at the time of the interim results announcement.

ANNOUNCEMENT OF INTERIM RESULTS

The interim results will be announced on 19 August 2009.

* Adjusted profit before tax is stated, mainly, before restructuring costs of £0.2m (six months to 30 June 2008: £nil; six months to 31 December 2008: £0.6m), foreign exchange losses on Swedish kronor inter-company balances of £1.3m (six months to 30 June 2008: gain of £0.3m; six months to 31 December 2008: gain of £0.9m) and the cost of share options.

Ends

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