14th Sep 2021 12:35
(Alliance News) - Xaar PLC on Tuesday said it has attracted new customers and seen "positive re-engagement" with the company in the first half of 2021, though swung to a loss.
The Cambridge-based inkjet printhead supplier posted a pretax loss for the six months to June 30 of GBP2.1 million, from a profit of GBP1.3 million a year prior. Revenue climbed to GBP26.3 million from GBP23.7 million.
"These results reflect the positive momentum we have generated across the business. Our foundations remain strong, as we continue to gain new customers and positively re-engage in our core markets," commented Chief Executive John Mills.
Mills added that ongoing investment in capability and capacity, coupled with first half momentum, position the Xaar to return to medium-term profitability.
No interim dividend was declared, unchanged from 2020. The company said it felt it "would be inappropriate to reinstate payment of dividends before sustainable profits are restored".
Going forward, Mills said it is difficult to provide reliable guidance for the rest of the year due to Covid-19.
He added however: "The short-term outlook remains positive with a healthy order book across the business. The success we have had in the first half of 2021, and the strength of the Group's balance sheet and cash position, means the business is well-positioned to withstand further volatility caused by the pandemic."
The company expects full year results in line with expectations.
Xaar shares were down 9.7% at 205.00 pence each in London on Tuesday.
By Josie O'Brien; [email protected]
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