Xaar plc half year trading update
Xaar plc, the inkjet printing technology group headquartered in Cambridge, presents an update on performance for the six months ended 30 June 2006.
Sales to Europe and the US grew in line with expectations; however, due to de-stocking by customers, the growth in sales to Asia in the second quarter was slower than had been expected and planned for.
Profit before tax for the period was approximately 4.7m (30 June 2005: 4.9m on a comparable basis) which reflects lower than expected overhead recovery. While growth in profits is expected in the second half of the year, profit before tax for the full year is now likely to be below current year expectations and similar to the level reported in 2005.
The board remains confident about its prospects for 2007 and a further update will be given at the time of release of the group's interim results in September.
Cash generation during the first half was strong with cash at the end of June of approximately 16.3m (30 June 2005: 17.5m, 31 December 2005: 14.5m). This reflects the resolution of certain customer payment issues referred to at the end of last year, payment of the final dividend for 2005 of 0.9m and capital expenditure on tangible and intangible assets of 4.1m.
Announcement of interim results
The detailed interim results will be announced in accordance with Xaar's normal timetable on 13 September 2006.
Xaar plc: 01223-423663
Ian Dinwoodie, Chief Executive
Nigel Berry, Group Finance Director & Deputy Chief Executive
020-7367-8883 / 07802-888159
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Xaar is a world leader in the development of digital inkjet technology