The Cambridge-based inkjet manufacturer 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.

Net cash (cash minus borrowings) for the 12 months came in at £22m, nearly double the £11.1m Xaar recorded in 2009.

According to Ian Dinwoodie, chief executive at Xaar, strong sales of the manufacturer's Platform 3 inkjet heads helped drive the company's growth.

"Sectors such as digital label production and ceramic tile decoration have both helped sales of P3, the latter driven in particular by the transition of analogue to digital," he said.

That growth has catalysed the ongoing expansion of the group's Huntingdon site, which will create 200 new jobs. The planned production capacity expansion programme is taking place this year and is "on track" according to Dinwoodie.

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."

It added that sales of P1 in China had decreased and that its relationship with distributor JSS will change to one of reseller, with inventory now classed as 'on consignment'. This will lead to a restatement of its 2009 figures.

The company's share price was up 3.59% to 231p on the news