The group’s interim results were in line with expectations, with sales down 6% at £34.5m and adjusted EBITDA up 17% at £3.5m.
The pre-tax loss in the six months to 30 June was £1.8m (2022 loss: £300,000).
Xaar completed phase one of its factory efficiency programme on time and within budget, a move that will pay immediate dividends thanks to efficiencies and a reduction in energy usage of around 30%.
Future phases will involve an investment of £10m-£15m, with the next element set to begin in early 2025.
CEO John Mills said new products “especially Aquinox”, were generating strong interest from existing and new customers.
“Whilst being mindful of the external environment, we remain optimistic about the future with encouraging signs of recovery in key markets and the business in good shape to make further progress and to deliver a full year performance in line with our expectations,” he said.
“With a substantial market opportunity and the progress made, we remain well positioned to realise our exciting potential.”
Xaar also chose to invest £3.2m of its net cash in printhead inventory to ensure it can meet demand for its products in a timely manner for the rest of this year and into 2024.
CFO Ian Tichias said this had already resulted in additional sales. “We have definitely won business. Each of our competitors have had supply issues, it’s given us a competitive advantage already.
“By carrying stock we can act on the significant market opportunity.”
The performance of direct-to-object wing EPS was described as “excellent” while FFEI and Megnajet continued to perform well.
Xaar has sold some of FFEI’s Life Sciences IP assets for £2m as part of its withdrawal from that part of the business, which is non-core.
Xaar also pointed a new opportunity in business-to-consumer desktop inkjet 3D printing products using its Irix head, with products expected to hit the market in the next six-to-twelve months.
New products in textiles and corrugated using the Aquinox water-based printhead are expected to be launched in H2, and Xaar said its new partnership with Quantica was also progressing according to plan.
