Xaar has issued a trading update ahead of its year-end results, stating that the integration issues that had caused problems for the business are now over.
The inkjet technology developer said that its results for the year to 31 December would be in line with the heavily downgraded expectations that caused Xaar’s share price to slump last year.
However, Xaar said it was likely to increase provisions for inventory and debtors by £7m due to the delays, which resulted in “an unfavourable working capital ageing profile”.
“The integration issues experienced leading to the delays are now behind us and sell-through is expected to increase. Furthermore, the minimum volume commitments from our supplier have now been met,” the firm stated.
Xaar’s shares fell by 5.8% to 126.8p on the announcement (52-week high: 375.92p, low: 119.9p).
Earlier this month Xaar’s 1201 printhead made its debut in a variety of new printers launched by Xaar OEM partners at two exhibitions in China. Applications included textile printing, UV flatbed and roll-to-roll, and eco-solvent.
In February the Cambridge-headquartered manufacturer held a special event for more than 300 of its UK employees to mark the work that went into the release of its 5601 printhead, which is expected to find favour in a number of industrial printing applications.
Chief executive Doug Edwards said the event had been about recognising the team effort involved, and “reinforcing how each person had a role to play”.
“We are immensely proud of what has been achieved in terms of delivering a completely new technology platform, which we expect to deliver a step-change in inkjet printing. It is a fantastic achievement by everyone at Xaar and demonstrates our leadership in inkjet technology.”
Attendees created an image of the Xaar 5601 printhead using pictures of all UK employees.
Xaar will release its 2018 results on 21 March.
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