The fightback starts here, says defiant Xaar
Cambridge inkjet company Xaar says all the ingredients are in place in terms of management, technology and strategy to grow the business in the next year following a tough last 12 months.
CEO John Mills expressed confidence in the future as the UK company posted a big drop in revenue and a substantial increase in pre-tax losses for the year to December 31, 2019.
The Cambridge Science Park company saw revenue from continuing operations nosedive by £11.1 million to £49.4m while pre-tax losses hit £9.8 million as against a £4.5m profit the previous year.
It made a Loss for the year under IFRS of £71.5m (2018: £12.5m) driven by the cessation of the company’s Thin Film programme.
Xaar reports a strong balance sheet with net cash at December 31 of £25.3m (2018: £27.9m). It says significant cash outflows associated from Thin Film (£18m) were offset by increased Stratasys investment in Xaar 3D (£12m) and cash generated by the continuing operations of £3.4 million.
It is suspending financial guidance because of continued uncertainty associated with COVID-19.
The CEO said: “2019 has been a difficult year for the group as a result of the performance of the Printhead business and decision to end investment in Thin Film. We entered 2020 with confidence in the long-term future of the business, with a revised strategy and product roadmap.
“With a strong balance sheet and net cash we have the appropriate level of funding to deliver improved business performance. We have the fundamentals in place with a new management team executing a strategy to return to profitability and deliver sustainable growth for the long term.”