“Despite a continued uncertain macro-economic outlook, we remain confident and excited by the future and look forward to the launch of our aqueous printhead later in the year,” said John Mills, CEO of the Cambridge, UK-based inkjet printing technology company.
In a trading update for the six months ended 30 June 2022, Xaar reported “continued strong trading and momentum. Revenue for the period is expected to be approximately £37 million, representing an increase of 41% relative to H1 2021 (14% organic excluding FFEI and Megnajet) and 12% relative to H2 2021 (11% organic excluding Megnajet).
Strong revenue growth with improved gross margins and successful cost management actions means the board expects the Group to be on track to report an adjusted profit for the current year in line with its expectations.
“Printhead division performed well with strong growth in Europe and US offsetting a Covid-related slowdown in China. We remain on track for the aqueous printhead launch in Q4 2022
“The new printbar product developed by FFEI, Xaar Versatex, was successfully launched, while the acquisition of Megnajet further strengthens the Group's vertical integration capability.”
Xaar said further investment in inventory had allowed the company to successfully mitigate cost inflation and increase supply chain resilience.
“Sales price increases have further assisted in off setting the effects of cost inflation. Additional management initiatives are helping in reducing costs and increasing operational efficiency while cutting energy use supporting Xaar's 'net zero' commitments.
“The Group remains well capitalised with a strong balance sheet and cash position. Investment has been made in acquiring Megnajet and key capital projects together with increasing working capital to protect the Group's supply chain and ability to deliver products on time. Net cash at 30 June 2022, was £12.6 million, in line with management expectations.”
John Mills, chief executive officer at Xaar (pictured right), said: "We are really pleased to have achieved a strong performance in the first half of the year in line with our expectations. We are on target, seeing positive momentum continuing to improve performance across the Group.
"Despite a continued uncertain macro-economic outlook, we remain confident and excited by the future and look forward to the launch of our aqueous printhead later in the year."
