In an interim management statement released this morning, the inkjet developer said business was in line with expectations and it was confident on prospects for the full year. 

A year ago the firm benefited from a surge in demand for its products from Chinese ceramic tile makers. It said the ceramic decoration side of its business would make “a more stable contribution” this year.

The group achieved record results in 2013, posting sales up 55% to £134.1m as the ceramics market made a rapid switch from analogue to digital printing.

Chief executive Ian Dinwoodie had already flagged up that growth would be “more modest” in 2014.

Xaar had net cash of £49.5m at 31 March, £4m down on the sum in hand at the end of last year, due to the expansion of its facilities at Huntingdon.

It is investing £30m in upping manufacturing capacity by 75%.

During the first three months of the year Xaar also launched its new 1002 printhead, which it believes will set a new standard in single-pass inkjet printing.

Other new products in the pipeline for 2014 include the Xaar 501 for both the graphics and packaging markets. It is also testing a new 200-nanolitre drop technology for use in industrial coatings.

Xaar’s share price rose 2p to 831.5p in early trading.