Xaar forecasts modest annual profit amid market challenges

CAMBRIDGE, UK - Xaar plc, a leader in inkjet printing technology, has provided a trading update indicating an expected revenue of approximately £62.7 million for the year ending December 31, 2024. This figure shows a decrease from the previous year's £70.6 million. Despite growth in new markets, significant declines in the ceramics sector have impacted the overall performance.

The company has maintained gross margin rates consistent with forecasts and asserts that through prudent cost management, it anticipates a modest full-year adjusted profit before tax. This performance aligns with prior expectations and represents stability in challenging market conditions. Xaar highlighted a strong year-end net cash position of about £8.2 million, an improvement from £5.7 million the previous year, with an untouched £5 million revolving credit facility.

In a separate statement, Xaar confirmed the permanent appointment of Paul James as CFO and Executive Director following his interim tenure. James's appointment is seen as bringing significant expertise and stability to the company's leadership.

While Xaar remains positive about the potential for future growth in printhead revenues, with a number of opportunities in the pipeline, the company acknowledges the uncertainty of the timing for commercial adoption, which is affected by broader market factors. Consequently, a range of outcomes is possible for the fiscal year 2025, and the company plans to provide a more detailed outlook when it publishes full-year results on March 25, 2025.

Xaar's announcement reflects a cautious but stable outlook as it navigates market weaknesses and invests in future growth areas. The company will host a meeting for analysts and institutional investors on the day of the results announcement to discuss the performance in greater detail. This trading update is based on a press release statement from Xaar plc.

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