Xaar shares rise as it predicts modest profit for last year

The company is predicting a small profit on flat or slightly lower revenues but is confident that the printhead market will continue to buy its technology. Its cash position remains relatively healthy.

Revenue in the 12 months is expected to be around £62.7 million (FY23: £70.6m). Xaar says revenue growth in new markets has been encouraging but ongoing and significant weakness in ceramics – notably through the second half – has held back overall results.

It adds that gross margin rates are in line with expectation and, coupled with careful cost management, means the group anticipates reporting a modest full year adjusted profit before tax (FY23: £2.9 million) in line with previous expectations.

Xaar says the year-end net cash position remains robust at some £8.2m (FY23: £5.7 million) – and a £5m revolving credit facility remains undrawn.

Paul James, the interim CFO and executive director, has now been appointed to the role on a permanent basis.

Xaar said it remained optimistic about future growth in printhead revenues. “There are a significant number of immediate opportunities in our pipeline, particularly in exciting new applications where Xaar technology has competitive advantage,” its statement read.

The update added: “What remains uncertain is the exact timing of commercial adoption, something which is influenced by broader market factors.

“At present there are a wide range of outcomes possible for FY25. As the Board expects greater visibility by the time of the full year results, we will provide an outlook for FY25 at that time.”

The full year results will be published on Tuesday March 25.