Xaar (XAR) cautioned that lower sales volumes of its 1201 and 2001 printheads would hit second-half sales, reducing these to around the £22.5m figure it has secured over its first half. The inkjet technology specialist said that it needs more time to focus on “strategic negotiations” and has subsequently delayed the release of its half-year results from 10 September to 26 September.
The 1201 printhead has proved something of a thorn in the side for Xaar. In July, it announced that it had lowered its first-half expectations from £27m as 1201 inventories were returned to the business “for rework due to age”. Xaar has now said that it has recognised in its interim figures the impact of a £4.3m revenue reversal concerning the product’s inventory being returned to the business. A review of the product and its “realisable value” has led Xaar to make a £5.7m provision in its first-half accounts.
In March, analysts at broker N+1 Singer forecast an adjusted full-year 2019 pre-tax loss of £6.8m and a loss per share of 7.4p against a prior-year loss of £2m and 2.2p.
