Xaar PLC Trading Statement (1439T)
16 July 2020 - 4:05PM
UK Regulatory
TIDMXAR
RNS Number : 1439T
Xaar PLC
16 July 2020
Xaar plc
Trading update
Xaar plc ("Xaar", "the Group" or "the Company"), the leading
inkjet printing technology, today announces a trading update for
the six months ended 30 June 2020.
TRADING
The Board is pleased to announce that trading for the six months
ending 30 June 2020 has been in line with expectations and good
progress has been made implementing our strategy. Revenue for the
period is expected to be GBP23.7m, representing a decline of 7%
relative to H1 2019 and in line with H2 2019.
The Printhead business continues to perform well as changes in
the go to market strategy have seen early successes with several
new accounts won and customers re-engaging with the business. The
restructuring undertaken in the second half of 2019 has left the
business well positioned both to deal with the current economic
climate but also to deliver a sustainable and strong business in
the longer-term.
The Product Print Systems business has been impacted by COVID-19
with annuities and machine sales both below our original plan.
Despite that, good progress has been made in embedding the new
strategy and driving operational performance with revenue slightly
increased relative to the first half of 2019.
The 3D business has continued to make good progress. Despite
minor delays due to lockdown restrictions, product development and
testing is progressing well and investment in the go to market
strategy is underway.
BALANCE SHEET AND LIQUIDITY
The Group retains a strong balance sheet and cash position. Cash
and cash equivalents at 30 June 2020 were GBP23.9m with both the
Printhead and Product Print Systems business improving their cash
balance relative to 31 December 2019. The 3D business continues to
be well positioned to fund its development and go to market needs.
The Group maintains a strong cash focus and disciplined cost
controls.
CURRENT TRADING AND OUTLOOK
The Group continues to manage operations in response to the
constraints caused by COVID-19 with the priority of safeguarding
the health and wellbeing of our employees. Despite these
constraints, operations have remained effective and efficient.
As a result of the continued uncertainty surrounding economic
conditions globally, the Board will not be providing guidance at
this time. The short-term order book is healthy, and the business
is well placed to withstand the difficult trading environment. The
Board remains focused on the medium-term strategy to return the
business to profitability and growth and will provide more details
on our future plans at the half year results in September.
John Mills, Chief Executive Officer, commented:
"We are pleased with our performance for the first half which is
testament to the new strategy we have in place and all of our staff
who have managed the business well during a tough period. It has
been particularly pleasing to see success in re-engaging with our
core customer base whilst also winning new business.
Although short-term uncertainty will remain, the changes we have
made enable us to be well positioned for the long-term. The
fundamentals remain compelling, the market opportunity remains
significant and we are excited about future of the business."
Enquiries:
Xaar plc
Ian Tichias, Chief Finance Officer
& Company Secretary +44 (0) 1223 423 663
John Mills, Chief Executive Officer
Tulchan Communications +44 (0) 207 353 4200
James Macey White
Giles Kernick
Hollie Ralston
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END
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