Xaar Edges Up Dividend Despite Annual Profit Falling As Costs Rise

21st Mar 2018 10:15

LONDON (Alliance News) - Inkjet printing technology firm Xaar PLC on Wednesday reported a slight rise in revenue but a fall in profit for 2017 as general & administrative expenses increased.

Revenue rose to GBP100.1 million in 2017, up 4% compared to GBP96.2 million in 2016. However, pretax profit dropped to GBP18.0 million from GBP19.5 million the year prior.

The EPS acquisition Solutions business accounted for 80% of total product revenue in the period, up from 48% in 2016.

The fall in profit was due to a combination of factors, the company said, including the removal of a one-off foreign exchange benefit in 2016 and a "significant reduction of the Thin Film capitalisation" to GBP4.9 million in 2017 from GBP10.2 million in 2016.

General & administrative expenses in the period nearly doubled to GBP12.6 million from GBP6.8 million the year before.

Xaar declared a total dividend of 10.2 pence per share, up 2% from 10.0p per share in 2016.

"We are making good progress in transforming Xaar to a more diversified and customer centric company. Although we have had some challenges during the ramp up phase of multiple new products, the quality of our business continues to improve," Chief Executive Doug Edwards said

"I am particularly pleased that 80% of our product revenue is from new products launched in the last 24 months and acquired business which has helped product revenue excluding Ceramics grow by 23%," Edwards added.

Shares in Xaar were 9.3% up at 293.00p per share on Wednesday.

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