- Printhead unit’s swing from a £0.1m cash loss in the first half of 2020 to a £0.8m cash profit.
- Product print systems business, EPS, reports strong underlying profitability.
- Full-year guidance maintained.
- Disposal of 3D printing business imminent.
Cambridge-based Xaar (XAR:191p), a leader in the development of inkjet technology and maker of piezoelectric drop-on-demand industrial inkjet printheads, has reiterated full-year guidance in interim results that highlight “a positive short-term outlook with a healthy order book across the business.” Having posted a small cash loss of £0.4m on revenue of £26.3m in the first half, this implies cash break-even on £25m of revenue in the second half ahead of a step change in profitability in the next two financial years. House broker Investec forecasts cash profit of £3.6m and £10.9m, respectively, on revenue of £61m and £74.2m in 2022 and 2023.
Key to achieving these projections is a reinvigorated customer centric focus and new product investment in market segments in which Xaar has a competitive advantage. For instance, today’s launch of Xaar Irix provides customers with a printhead that offers greater image quality at longer print distances in the coding and marking sector. It follows on from April’s launch of Xaar Nitrox, a printhead that enables printing at 100 metres per minute for oil-based inks and other fluids including soluble salts used for printing glass. Importantly, these products have been launched specifically to address end market demand from OEMs.