The company cited strong demand for its Platform 3 printhead products from the industrial and packaging sectors but stated that production capacity to date has been constrained.

Xaar is in the process of expanding its Huntingdon manufacturing operation and said that the first production increases will be experienced before the end of the year.

Net cash at 31 March 2011 came in at £19.8m, compared to £22m on 31 December 2010.

In its 2010 full-year results, Xaar recorded a 32% increase in turnover to £54.7m, up from £41.5m in 2009. The company's reported pre-tax profit also grew, coming in at £5.4m compared to a loss of £0.7m the year previous.

Phil Lawler, chairman of Xaar, said: "Having demonstrated during 2010 that we have the products and opportunity to achieve substantial growth in revenue and profits, we now have in place the management team and other resources to execute our strategy.  

"We are well placed to achieve significant further success in 2011 and beyond."