Xaar Regulatory News (XAR)

14 Oct 2009 07:00



Xaar plc

INTERIM MANAGEMENT STATEMENT

Xaar plc ("Xaar" or "the Group"), the inkjet printing technology group headquartered in Cambridge, is providing an Interim Management Statement covering trading from 1 July 2009 to 30 September 2009.

Trading and margins for the third quarter of the year were in line with the Board's expectations and were broadly stable at the levels seen in the first and second quarters of 2009.

Launches of printing machines based on Xaar's Platform 3 technology continue, with eight of our OEM (original equipment manufacturer) customers exhibiting Platform 3 based machines at the recent Label Expo trade show held in Brussels. Sales of Platform 3 products are predominantly to customers based in Western Europe and North America and, whilst continuing to show modest growth over previous quarters, are still subject to the lengthy transition period between product launch and volume sales - a process which is exacerbated by the global recession. Sales of Xaar's other product ranges are consistent with previous periods.

The consolidation of the Group's manufacturing facilities into a single plant in Huntingdon, England is progressing to schedule. The design and planning phase of the programme is now complete and the first production processes have been relocated successfully. The overall time frame for the project remains at two years from March 2009; the costs and benefits of the project are in line with the original plan.

The Group's balance sheet remains strong. Net cash at 30 September 2009 was £9.6m (31 December 2008: £11.0m, 30 June 2009: £10.3m) after the payment of £1.5m of dividends (2008 final: £0.9m, 2009 interim: £0.6m) in the year to date.

The Board remains satisfied with the continuing stability in trading seen in the period. The overall trading environment remains unchanged from the time of the Half Yearly Report in August 2009.  There is still a lack of forward visibility of customer orders which, together with the ongoing uncertainty in the global business environment, contribute to a level of caution when looking ahead. 

Ends

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