Xaar Releases Results for FY24, Optimistic about Growth of Printhead Revenues

January 15, 2025 07:01 PM AEDT | By Team Kalkine Media

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Xaar Releases Results for FY24, Optimistic about Growth of Printhead Revenues — Image source: Shutterstock

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Highlights:

Revenue Decline of 11.2% Year-on-Year

Adjusted Profit in Line with Expectations

Strong Cash Position and Leadership Appointment

Xaar plc (LSE:XAR), a leader in inkjet printing technology, has issued a trading update for the year ended 31st December 2024, revealing a decline in revenue but maintaining a strong cash position. The Group remains optimistic about future growth in printhead revenues, despite challenges in the ceramics sector.

Xaar plc has reported expected revenue of approximately £62.7 million for the twelve months to 31st December 2024, down from £70.6 million in the previous year, marking a decrease of 11.2%. Despite encouraging growth in new markets, the Group faced significant weakness in its core ceramics business, particularly in the second half of the year, which impacted overall results.

Gross margins for the year were in line with expectations, and through careful cost management, Xaar is poised to report a modest adjusted profit before tax, consistent with previous forecasts of £2.9 million for FY23. Additionally, the Group's year-end net cash position remains robust at £8.2 million, up from £5.7 million in FY23, with the £5 million revolving credit facility remaining undrawn.

In leadership news, Paul James, who was appointed Interim CFO and Executive Director on 20th November, has now been confirmed as the permanent CFO following a rigorous recruitment process. His appointment brings stability to the Group’s leadership team at a pivotal time in the financial year.

Looking ahead, Xaar remains optimistic about the growth potential in its printhead revenues, with a strong pipeline of opportunities, particularly in new applications where its technology holds a competitive advantage. However, the timing of commercial adoption remains uncertain, with broader market factors influencing the pace of progress. The Board is confident that it will have greater clarity by the time of its full-year results, and an outlook for FY25 will be provided at that time

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