Xaars profits tripled in the first half of the year and it expects continued growth in the second half as it releases new products and enters new markets.


Finance director Gordon MacLeod said the economic downturn hadnt affected the firm.


Pre-tax profit was 2m, up from 700,000, on sales up 14% to 12.3m. XaarJet printhead and ink product sales grew 30% and now provide 75% of revenue.


"Our main focus is to grow the market for the XaarJet 500, which is going into flatbed printers," said chief executive Jan Fineman. "Industrial print products have taken off, weve got a solid order book for the third quarter."


The firm invested 900,000 in new production capacity for the 500, which is also being made in Sweden.


It will invest 2m this year in increasing manufacturing capacity, which will meet its needs for the next two to three years when combined with additional shifts and improved yields.


In March the page wide array (PWA) was demonstrated printing in four colours at 100 A4ppm.


Agfa has paid the final development fee for the project and Xaar will begin small-scale production by the end of the year. It is looking for partners to take the PWA into other markets including narrow web for packaging and labels.


In the autumn it will launch the XJ126R printhead, its first product suitable for water-based ink, which will allow it to move into the textile market.


Story by Barney Cox