15th Oct 2008 07:00
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FOR IMMEDIATE RELEASE |
15 October 2008 |
Xaar plc
INTERIM MANAGEMENT STATEMENT
Xaar plc ("Xaar" or "the Group"), the inkjet printing technology group headquartered in Cambridge, is providing an Interim Management Statement covering trading from 1 July 2008 to 30 September 2008.
Against an increasingly uncertain financial, economic and trading background, Xaar has maintained its strong balance sheet with cash at 30 September 2008 of £10.1m (30 June 2008: £10.7m) after payment of the interim dividend of £0.6m. Total debt at 30 September 2008 was £0.7m (30 June 2008: £0.7m). This cash neutral position during the quarter reflects the prudent management of the Group's cost base and discretionary expenditure, ensuring a solid platform for the future.
Sales of Xaar's established Platform 1 ("P1") products to China, which saw a significant decline towards the end of Q2, stabilised during Q3 but at a level which is lower than in previous years. Sales of P1 products to other regions and sales of Platform 2 ("P2") and Platform 3 ("P3") products remain on track. With revenues in Q3 lower than planned, and production levels in line with this lower demand, margins and profits were below plan. The Board expects an improved performance in Q4 but, in light of the outlook for the global economy, must remain cautious.
The Group has already implemented a series of cost saving measures, the benefits of which will be seen in 2009.
New launches by our OEM (Original Equipment Manufacturer) customers continue. Printers using Xaar's new P1 products have been introduced into the established graphics market; a further four new printing machines based on P3 technology were released in industries including label printing and ceramic tile printing.
With a robust cash position, prudent management and excellent new technologies the Board remains confident in the future of the business.
Ends
CONTACTS
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Xaar plc: |
01223-423663 |
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Ian Dinwoodie, Chief Executive |
www.xaar.com |
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Andrew Taylor, Finance Director |
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Bankside Consultants: |
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Steve Liebmann |
020-7367-8883 / 07802-888159 |
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