16th Apr 2014 07:31
LONDON (Alliance News) - Digital inkjet printing technology company Xaar PLC Wednesday said it remains confident that it will meet its expectations in 2014, after trading met its hopes in the first few months of the year.
In a statement, the company said its operating margin fell as expected in the first quarter, due to revenue seasonality and the investment it is making in expanding the capacity of its Huntingdon facility, as well as research and development spending.
The company had an exceptional first quarter in 2013, as its technology was rapidly adopted in the Chinese ceramic tile market. It has already said that it expects a more stable contribution from the ceramic decoration market in 2014 following the big increase last year. It said its sales and profit followed the "normal seasonal pattern" in the first quarter of this year - the company normally sees a dip in sales in the quarter due to the Chinese New Year.
It said its cash position at the end of March was GBP49.5 million, down slightly from GBP53.5 million at the end of December, reflecting the investment it is making in the Huntingdon plant expansion.
Xaar shares were up 2.5% at 850 pence early Wednesday, one of the biggest gains on the FTSE 250.
By Steve McGrath; [email protected]; @SteveMcGrath1
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