Xaar's trading meets expectations despite revenue dip

Xaar reported on Monday that trading remains in line with expectations, though it anticipates interim revenues will drop when compared to a year ago.

The industrial inkjet technology provider said it expects to report revenue of approximately £23m for the six months ended 30 June, down from the roughly £35.3m seen over the same period last year, after sales were impacted by approximately £4m of revenue reversals following Xaar's 1201 inventory being returned to the business.

However, the London-listed company stated that revenue grew by 8% in the first half of 2018 when excluding one-time royalties of approximately £10m and the aforementioned revenue reversal of approximately £4m.

Xaar also state the underlying trading in the Printhead business had stabilised after the declines of 2018 with growth in the industrial and packaging segments, while the Product Print Systems business grew by 41%.

Meanwhile, Xaar 3D Printing has received strong positive customer feedback for its new printer as the business continues to work closely with Stratasys on the next phase of a partnership.

Cash balances at the end of the period were in line with expectations at £21.6m, with the company expecting further improvement throughout the second half of the year.

Xaar's shares were up 5.84% at 94.20p at 1601 BST.