No dividend at Xaar triggers share price fall
Xaar revenue was up seven per cent to £27.2 million with printhead revenue 20 per cent ahead to £19.9m, contributing 73 per cent of group total, led by jewellery wax revenue growing from £0.6m in H1 2024 to £3.3m.
Xaar said a reduction in net cash was due to investment in capital equipment and development spend to drive future growth.
CEO John Mills said of the performance: "The start of 2025 has been encouraging with the swift progress made in the jewellery wax market, reflecting the disruptive impact our technology will have in our target markets once OEM products have been launched.
"Opportunities in EV battery coating, automotive coating and desktop 3D are setting the group up for sustainable medium-term growth with key developments within each market progressing as planned. As expected, EPS performance is constrained due to tariffs adding to existing end market uncertainty and historic weakness in the order pipeline. However, this is being addressed, and we look forward with increased optimism in the medium-term prospects of this business.
"Alongside a strong balance sheet, the group remains well positioned to deliver on the substantial opportunities in front of us, and we look forward to generating accelerating growth to the benefit of our shareholders."
Mills said Xaar's expectations for 2025 remained unchanged despite the additional uncertainty brought by the introduction of tariffs by the US and the continuation of challenging trading conditions reported in March. The company's strength was its attractive value proposition centred around the ability to jet highly viscous liquids, he claimed.
Xaar continues to anticipate that revenue will be second half weighted with order volumes expected to grow steadily throughout the year and into FY26. Printhead revenue is expected to be strong in the second half, whilst in EPS, the tariff induced end market slowdown is expected to continue to impact revenue and profit whilst the pipeline is being rebuilt.
Xaar works as a trusted partner from sites in Europe, North America and China, providing expert insights and technical support every step of the way. With over 30 years' experience, around 150 patents registered or pending, and major ongoing R & D investment, Xaar's digital printhead and precision jetting technologies are creating what Mills calls countless opportunities for today's growing sustainable manufacturing requirements.
The group continues to retain a strong balance sheet, with a net cash position at period end of £5.1m, down 38 per cent from £8.2m at the end of 2024, partly as a result of ongoing investment in capital equipment and capitalised R & D spend.
This expenditure was driven by Xaar's commitment to develop cutting edge, unique technology to open up new opportunities in the future, Mills said. He added that while Xaar remained focused on delivering the opportunities it faced, it would utilise cash accordingly, continuing to invest for the long-term benefit of the group.
