Xaar Regulatory News (XAR)

Xaar plc

Trading Update

Xaar plc ("Xaar", "the Group" or "the Company"), the inkjet printing technology group headquartered in Cambridge, announces an update on trading for the year ended 31 December 2013.

In line with the Board's expectations, Xaar expects to report adjusted revenue of approximately £134 million for 2013 (£137 million on a non-adjusted basis), an increase of around 55% compared to 2012 (£86.3 million).

Revenue growth in 2013 was achieved mainly through significantly increased sales into the industrial sector, supported by strong growth in the packaging sector and modest growth in the graphic arts sector. Demand for Xaar's technology in the industrial sector was principally driven by the conversion of ceramic tile printing to digital inkjet from analogue processes, particularly in China.

The Group expects to record a 2013 adjusted operating margin in the range of 30-31% (2012: 21%), with the growth in margin reflecting operating efficiencies despite a near doubling of R&D investment in 2013 versus 2012.

The Group continues to maintain a strong balance sheet with net cash at 31 December 2013 of £53.5 million (31 December 2012 - £28.9 million).

Preliminary Results for 2013 are expected to be announced on 18 March 2014.

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