Xaar trading in line with forecasts despite Covid-19 impact

The firm said revenues for the six months to 30 June were likely to come in at £23.7m, a 7% decline compared to the first half of 2019 and flat against the second half.

Xaar said the figures were in line with forecasts, adding that it had also made good progress implementing its new strategy. The firm is looking to move into profit after aborting a project to develop thin film printheads and refocusing on areas where it already has competitive advantage. It will also work exclusively with original equipment manufacturers, rather than distributors. In April, chief executive John Mills said 2020 would a year of transition.

Looking forward, Xaar said it was continuing to manage operations in response to the pandemic. "Despite these constraints, operations have remained effective and efficient," it said, adding that the short-term order book was "healthy".

"The business is well placed to withstand the difficult trading environment." As at 30 June, cash and cash equivalents were £23.9m.

However, the company did not reinstate full-year guidance, citing uncertainty surrounding global economic conditions.

John Mills, who took over as chief executive in October, said: "We are pleased with our performance for the first half, which is testament to the new strategy we have in place.

"Although short-term uncertainty will remain, the changes we have made enable us to be well positioned for the long-term. The fundamentals remain compelling, the market opportunity remains significant and we are excited about the future of the business."