RNS Number : 8495Y
Xaar PLC
11 July 2008
FOR IMMEDIATE RELEASE 11 July 2008
Xaar plc
HALF YEAR PERIOD-END TRADING UPDATE
and
CHANGE OF FINANCIAL ADVISER AND BROKER
Xaar plc ("Xaar" or "the Company"), the inkjet printing technology group headquartered in
Cambridge, presents an update on performance
for the six months ended 30 June 2008, its intention to pay a maiden interim dividend and the
appointment of a new financial adviser and
broker.
TRADING
As previously indicated, revenues in the period were affected adversely by a slowdown in
sales of Xaar Platform 1 products into China.
Sales of Platform 2 and Platform 3 products continue to show good progress with continuing
sales of 'developer kits' and a significant
number of new product launches at the recent 'DRUPA' international trade show.
Revenue for the six months to 30 June 2008 was approximately £22.5m (six months to 30
June 2007: £23.4m). Profit before tax for the
period was approximately £3.8m (30 June 2007: £3.1m), after providing for amortisation of
capitalised R&D of £0.5m (30 June 2007: £0.5m) and
the cost of share based payments of £0.5m (30 June 2007: £0.4m).
At the time of the last communication to the market on 23 May 2008, the Board was
confident that results for 2008 as a whole would be in
line with the market consensus for the year. The Board now expects full year results for 2008
to be more in line with those for 2007 and,
therefore, below the current market consensus. This is due to two factors. First, trading for
Platform 1 products in China is continuing to
be weaker than expected. This is a reflection of the increasing maturity of this market with
slower growth and increasing competition,
primarily from Xaar licensees. Secondly, negotiations on a potentially significant agreement
were ended due to adverse economic conditions
affecting the third party. These discussions had been going on for some eighteen months and
the Board was expecting an imminent successful
outcome at the time of the last trading update.
CASH
Cash at the end of June was approximately £10.7m (30 June 2007: £10.0m). This reflects
the payment of the final dividend for 2007 of
£1.5m (final dividend for 2006: £1.2m) and capital expenditure on tangible and intangible
assets of approximately £2.5m.
INTERIM DIVIDEND
It is the Board's intention to pay an interim dividend of 1.0p per share. This will be the
first interim dividend to be paid by the
Company; hitherto a single final dividend has been paid and was 2.5p for 2007.
The Board now expects its dividend payment policy to be a split of approximately one
third/two thirds between the interim and final
payments, subject to performance.
CHANGE OF ADVISER
The Board also announces that Landsbanki Securities (UK) Limited has been retained as the
Company's new financial adviser and broker
with immediate effect.
ANNOUNCEMENT OF INTERIM RESULTS
The detailed interim results will be announced in accordance with Xaar's revised timetable
on 20 August 2008.
Ends
CONTACTS
Xaar plc: 01223-423663
Ian Dinwoodie, Chief Executive www.xaar.com
Andrew Taylor, Finance Director
Landsbanki Securities (UK) Ltd 020-7426-9000
Shaun Dobson or Dan Webster
Bankside Consultants:
Steve Liebmann or Simon Bloomfield 020-7367-8883 / 07802-888159
This information is provided by RNS
The company news service from the London Stock Exchange
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