Xaar hits record revenues and profits
Inkjet printing technology powerhouse, Xaar, has notched record interim revenues and profits for the six months to June 30.
Revenue was up 20 per cent to a record £37.9 million and adjusted profit before tax up 57 per cent to a record £6.7m year-on-year.Product sales were £34.3 million (£28.2m) and royalty revenue was £3.6 million (£3.3m).
The company said growth was driven by its Platform 3 (P3) products for industrial applications and added that a G4 product was in the pipeline.
Xaar’s gross margin increased two per cent to 46 per cent due to manufacturing efficiencies and product mix, the company added.
Cambridge Science Park-based Xaar revamped its manufacturing capabilities through upgrading its Huntingdon facility and chairman Phil Lawler said this capacity expansion programme for P3 production was completed ahead of schedule and under budget. The move had also handed Xaar scope for further expansion as required.
As well as the UK, the company has operations in the US, India, China, Brazil and Sweden.
Lawler said Xaar had increased investment in research and development and headcount was up 27 per cent from December 2011. The company is on track for key Platform 4 product architecture decisions in 2013.
Lawler said: “Over the last two years we have made excellent progress in maximising the growth opportunity in the ceramics segment, largely through the flawless execution of the capacity expansion programme in Huntingdon.
“This has resulted in a record revenue and profit performance for the first half of 2012. We continue to develop products for existing markets and we are committed to expanding our technology into new markets, and as a consequence we are well positioned for further growth in the both the short and long term.”
As expected, the geographic mix of sales has shifted towards continental Europe, with these European based OEMs selling to the worldwide market.
Lawler said: “Although a good proportion of our revenue remains sterling denominated, our exposure to Euro currency fluctuations has increased. Our treasury policy and procedures have been updated to mitigate the potential adverse effects of this.”
• PHOTOGRAPH SHOWS: Xaar chairman, Phil Lawler
