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Xaar PLC (XAR)

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Thursday 21 January, 2010

Xaar PLC

Period end trading update

RNS Number : 8908F
Xaar PLC
21 January 2010
 




FOR IMMEDIATE RELEASE

21 January 2010



Xaar plc



FULL YEAR TRADING UPDATE



Xaar plc ("Xaar"), the inkjet printing technology group headquartered in Cambridge, presents an update on trading performance for the year ended 31 December 2009.


Trading


Trading for the fourth quarter of 2009 and the year as a whole was in line with the Board's expectations and the financial results for the 12 months ended 31 December 2009 are expected to be in line with market expectations.


The trends reported in the IMS dated 14 October 2009 continued through to the year-end.  OEM customers are continuing to develop digital printing machines incorporating Xaar's Platform 3 technology and, whilst some applications are now technically proven and contribute material revenue to Xaar, others still remain some way from full commercialisation.  Xaar remains committed to providing its Platform 3 customers with the necessary support to bring these developments to a successful conclusion and has continued to incur some significant costs in doing this.


Sales of Platform 1 products continue to deliver the majority of Xaar's revenues through both new product launches and continuing sales of existing products, albeit at lower margins than seen historically.  These lower margins are a direct result of the highly competitive nature of this market and, as is the case for Platform 3, higher than expected customer support costs for some of these products.


The project to transfer those manufacturing facilities located in Sweden to the Group's Huntingdon facility continues to be on track with completion scheduled for March 2011.


Whilst results for 2009 are expected to be in line with market consensus, the level of profitability reflected the benefits of the cost cutting programme previously implemented offset by the higher than anticipated product and customer support costs.  The Board is continuing to take appropriate action to improve profitability and is planning on delivering improved results for 2010.


Cash


Net cash and cash equivalents at 31 December 2009 were approximately £11.1m (31 December 2008: £11.0m, 30 June 2009: £10.3m) after payment of £1.5dividends in the year.  


Dividend


It is the Board's intention to recommend the payment of a final dividend, details of which will be provided at the time of the announcement of the final results for the year.


Announcement of final results


The detailed results for 2009 will be announced in accordance with Xaar's normal timetable on 17 March 2010.


Ends



CONTACTS


Xaar plc:

01223-423663

Ian Dinwoodie, Chief Executive

www.xaar.com

Andrew Taylor, Finance Director 

 

 

 

Singer Capital Markets Limited:

020-3205-7626

Shaun Dobson

 

 

 

Bankside Consultants:

 

Steve Liebmann

020-7367-8883 / 07802-888159



This information is provided by RNS
The company news service from the London Stock Exchange
 
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