Xaar reported an adjusted pre-tax profit for the 12 months to December 31 2009 of £2.6m, compared with £2.8m in 2008. However the year ended in a reported loss of £200,000 compared to a £4.4m profit in the previous year.

In the preliminary results, the manufacturer made a turnover of £42.1m, in line with expectations, up marginally from £42m in 2008.

The group had net cash at the end of the year of £11.1m, up from £11m for the same period a year earlier, and maintained a final dividend of 1.5p, making 2.5p for the year (2008: 2.5p).

According to Xaar, six of its Platform 3 products, which includes its flagship 1001 piezo printhead, are now generating business with volumes in its ceramic and labels lines expected to grow throughout the year.

Dinwoodie said: "The top priority for 2010 is to achieve the final performance level required for all of our P3-based developments, allowing volume business to develop.

"Over the medium term, based upon both the growth of our P3 business and the cost savings following the completion of our manufacturing relocation programme, we expect both margins and profitability to improve further."

The company said that its results had been impacted by the effect of a cost-saving programme that began in the second half of 2008 and the ongoing relocation of manufacturing capacity from Sweden to its Huntingdon site in the UK, which resulted in a restructuring charge of £2.7m.

The Swedish operation is due to close in the first half of next year, while 20% of the roles have already been transferred to the UK.

Xaar chairman Phil Lawler added: "The board remains convinced that Xaar has the right products and has matured in its understanding of what it takes to make the new technology a success for our OEM customers. We remain profitable, cash generative and financially strong."

"It has been difficult out there. We've been waiting for things to get going and now things are picking up," added Dinwoodie