In a trading statement, the Cambridge-headquartered inkjet developer said turnover in the six months to 30 June would be around £47m (2014: £60.4m).

However, full year sales are now expected to come in at between £92m-£95m, a slight increase on the £90m previously predicted.

Sales across all of its markets were described as “broadly in line with expectations”.

The crucial Chinese ceramic tile printing market, which had accounted for two-thirds of the group’s sales prior to a dramatic fall-off in demand in 2014, was said to have steadied over the past six months.

The group had already said that 2015 would be a “stabilisation” year, with a return to growth predicted for 2016.

Chief executive Doug Edwards, who joined the company at the beginning of the year from Kodak, has been upbeat about the group’s prospects for broadening the use of its technology in other areas of graphic arts.

As part of Edwards’ management revamp the firm has just appointed Keith Smith to the new role of director of advanced manufacturing, based in the US and reporting directly to Edwards.

Smith worked at Xaar a decade ago. He joins from Token ITO, a Chinese touch sensor manufacturer, and is tasked with “identifying and developing strategic advanced manufacturing opportunities and partnerships outside Xaar’s established markets”.

Xaar’s main manufacturing site is in Huntingdon.

The firm will release its interim results at the end of August.

Xaar’s share price rose by 2.5p to 480p in early trading (52-week high: 592.5p, low: 217.5p).