Xaar trading in line so far, rest of year uncertain

The London-listed firm said that in March, when lockdown measures were introduced in the UK and elsewhere, it implemented safe working methods for all staff where their attendance on site was necessary, particularly in its factories, while other staff were able to work remotely.

It said overall trading in the first four months of the financial year was in line with the expectations it had established before the Covid-19 coronavirus pandemic.

Sales had been weaker in Europe and North America, but stronger in Asia where economies came out of lockdown sooner.

The company, which was holding its annual general meeting later in the day, said its short-term order book was “healthy”, but noted that the outlook for the second half remained uncertain, adding that it was too early to assess the impact of the pandemic on the results for the 2020 and full year, into 2021.

“The board will re-establish guidance on expectations as more economies emerge from lockdown and there is greater certainty surrounding economic conditions,” the directors said in its statement.

“We remain confident and focused on our medium-term strategy to return the business to profitability and growth.”

Xaar said it had entered the year with a “strong” balance sheet and net cash, and an appropriate level of funding to support its strategy.

“We have maintained disciplined cost control and strong cash management over the past four months and remain well positioned.”

At 1015 BST, shares in Xaar were down 3.87% at 61.43p.