27th Aug 2015 07:38
LONDON (Alliance News) - Xaar PLC Thursday said it expects continued stability for the remainder of 2015, with the intention to return to growth in 2016, as it reported a fall in pretax profit for its first half.
The inkjet printing technology company proposed an interim dividend of 3.15 pence, up from 3.0 pence a year before
For the half year to end-June, Xaar reported a pretax profit of GBP3.7 million, down from GBP15.3 million a year before, as revenue fell to GBP47.8 million from GBP60.4 million and it recorded restructuring costs of GBP4.8 million.
On an adjusted basis, stripping out share-based payments, restructuring and other costs, pretax profit fell to GBP9.1 million from GBP16.1 million a year before, but improved on the GBP8.5 million it posted in the second half of 2014. Xaar said that whilst profitability was hit in the half year by a fall in sales compared to the previous year, cost-cutting measures it took during 2014 had led to an improvement from the second half of 2014.
Xaar was hampered throughout 2014 by a slow-down in the property and construction markets in China, leading to lower demand for Xaar's ceramic tile products during the second half of 2014 after a period of strong growth. This was compounded by slower progress than expected in other applications.
The company said that, although visibility of demand remains limited, particularly in China, it expects revenue in the range of GBP92 million to GBP95 million for 2015 as a whole.
"After a challenging 2014, our business achieved stability in the first half of 2015, with sales into all segments performing in line with expectations. For the remainder of 2015 we anticipate continued stability with the intention to return to growth in 2016. Our longer-term ambitions remain much more significant, reflecting the digital inkjet market opportunity and our technology leadership position," said Chief Executive Officer Doug Edwards in a statement.
Shares in Xaar were up 4.1% at 470.50 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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