Xaar tumbles following profit warning

Xaar revised its expectations as a result of lower sales volumes of Xaar 1201 and Xaar 2001 printheads, slower than expected new printer installs by original equipment manufacturers and credit and sales channel issues.

The London-listed group now expects sales in the second half of the year to be similar to the £22.5m recorded in the first half, which included the impact of a £4.3m revenue reversal relating to its Xaar 1201 Thin Film printhead inventory being returned to the firm.

As part of its interim results process, a review of the group's holding of Xaar 1201 printhead inventory and near term prospects for sale resulted in a reassessment of realisable value, with the group now considering it prudent to make a provision of £5.7m, which will be reflected in its first-half results.

Looking forward, Xaar said: "Management continues to focus on its strategic negotiations and expects that some additional time could enable the board to provide a more meaningful update on progress, including any effect this may have on our interim results statement."

As a result, Xaar opted to defer the announcement of its interim results until 26 September.

As of 0820 BST, Xaar shares had tumbled 26.14% to 65p.