In a trading update for the six-month period to 30 June 2010, the company said that revenues were ahead of the same period last year and in line with board expectations.

Sales of Xaar's Platform 1 products remained stable during the period, while demand for its Platform 3, which includes the flagship Piezo 1001 printhead, continued to "increase significantly".

According to chief executive Ian Dinwoodie, the increased demand has stemmed from the growing volumes in both the ceramic and digital label sectors.

As a result of the increased sales of its Platform 3 products, the manufacturer is continuing to increase capacity at its Huntingdon, Cambridgeshire, plant with plans to double it in the coming months.

Net cash and cash equivalents at 30 June 2010 were around £8.2m, compared with £11.1m on 31 December 2009 and £10.3m on 30 June 2009.

According to Xaar, this comes after £2.8m of capital expenditure and £900,000 of dividends paid during the six months.
  
Xaar also confirmed that the board intended to pay an interim dividend. The company will release its half-year results on 18 August.