Xaar plc shares rise as strong medium term growth is forecast

Any increase in stock in the current climate is to be welcomed and Xaar’s share price was more than 4p higher to 64.09p on the news on Tuesday – even though revenue and adjusted profit before tax were lower and losses massively higher for the year to end-December.

Revenue was down 13 per cent to £61.4 million and adjusted profit before tax crept in at £0.3m – 89 per cent lower than the £2.9m in the previous 12 months.

The company’s losses were a hefty 346 per cent higher – up from £2.4m last time to £10.7m – but the company ended 2024 with 23 per cent more net cash – £8.7m as against £7.1m the previous year.

New Printhead business was very much the bright spot with revenue up 23 per cent to £18.9m.

Strict controls over spending allowed Xaar to breathe more freely while shrewd investment in fresh innovation bore fruit.

CEO John Mills said: “2024 was a mixed year. While we did not meet our original revenue aims, we did make strong strategic progress and delivered both a profit and increased cash over the year. 

“Our key strategic milestones, notably in the areas of EV battery coating, automotive coating and desktop 3D, are setting the Group up for sustainable medium-term growth and are all progressing as planned. 

“Increasing market awareness of our value proposition also means that global market leaders are now approaching us to learn more about the benefits of high viscosity fluids.

“In addition, the provision of a complete turnkey solution to M & R, a major player within the textiles market, has proven extremely successful. 

“With a second project ongoing, we continue to evaluate opportunities to roll out this go-to-market strategy to additional markets and customers, potentially transforming our future rate of growth and market capture.

“With the ceramics market decline nearing its trough, this headwind should reduce going forward, allowing new business revenue growth to translate to profit more readily.

“Overall, the visibility and scale of the medium-term opportunities at Xaar continue to grow. Combined with the cash on our balance sheet, we remain well-positioned to generate sustainable growth.”