Xaar confident of meeting 2015 revenue expectations

Digital inkjet printing technology group Xaar is confident it will meet its revenue expectations for 2015.

In a trading update for the year to the end of December, the company said it is likely to report total revenue of around £93.5m, in line with the board’s expectations.

Xaar said that since the last trading update in November, sales have been in line with expectations, with revenue growth in packaging offset by the anticipated softening in demand in ceramic tile printing in China.

Improved operating efficiency at the Sweden and Huntingdon manufacturing sites means Xaar now expects to report an adjusted operating margin for 2015 of around 20%.

The group added that it remains in a strong financial position, with net cash at 31 December 2015 of £70m compared with £59 at 30 June.

At 1130 GMT, Xaar shares were up 8.5% to 489.25p.