In a statement released today (15 January), the Cambridge-headquartered inkjet developer said its revenue in the 12 months to 31 December 2024 is expected to be approximately £62.7m (FY23: £70.6m).
It said revenue growth in new markets has been encouraging but that ongoing and significant weakness in ceramics, particularly through the second half of the year, has held back overall results.
Gross margin rates are in line with expectation and, coupled with careful cost management, means the group anticipates reporting a “modest” full year adjusted pre-tax profit (FY23: £2.9m) in line with previous expectations.
The group said its year-end net cash position remains robust at £8.2m (FY23: £5.7m) and that its £5m revolving credit facility remains undrawn.
Xaar said it remained optimistic about future growth in printhead revenues and that it saw “a significant number of immediate opportunities in our pipeline, particularly in exciting new applications where Xaar technology has competitive advantage”.
“What remains uncertain is the exact timing of commercial adoption, something which is influenced by broader market factors. At present there are a wide range of outcomes possible for FY25. As the board expects greater visibility by the time of the full-year results, we will provide an outlook for FY25 at that time,” it further stated.
The full-year results will be published on 25 March 2025.
In a separate statement issued today, Xaar confirmed that further to its November announcement that it had appointed Paul James as interim CFO and executive director, James has now been appointed to this role on a permanent basis, effective immediately.
James was previously group CFO of Biffa from September 2023 to October 2024 and group CFO of Genuit Group from March 2018 to September 2023. In addition, he has held a number of senior positions at Currys, Inchcape, and British American Tobacco.
Xaar group CEO John Mills said: “Paul is an outstanding senior executive with substantial financial experience and leadership capabilities, who will advance our strategic priorities and ensure we fully monetise the significant opportunity set before us.
“We are delighted that he has recognised the long-term potential after making a meaningful contribution in just a short period of time.”
James added: “I am excited to join the talented team at Xaar as we progress to becoming the market leader in the printhead space. With solid foundations and cutting-edge technology, the company has access to significant structural growth and I look forward to supporting John in realising the full potential of the company.”
Xaar’s share price was up by 16.41% on yesterday’s close at the time of writing just before lunchtime today at 74.50p (52-week high: 150.50p, low: 63.60p).
