The inkjet print head manufacturer said that sales of its P1 products had shown "more stability than in recent periods" while the growth in its P3 products first recorded in Q4 2009 had continued.

Xaar said that, following the continued growth in P3 sales, it was investing to increase output from its Huntingdon plant by mid-year.

According to Xaar, consolidation of its manufacturing facilities into its single Huntingdon plant remains on schedule, with costs and benefits in line with its original projections.

In its interim management statement, the Cambridge-based company recorded a strong balance sheet, with net cash at 31 March 2010 of £9.2m, compared to £11.1m on 31 December 2009.