Xaar PLC on Wednesday said its revenue for the first half of 2024 has fallen due to a declining ceramics market, despite making progress in other areas.
The Cambridge, England-based industrial inkjet manufacturer said revenue for the six-month period ended June 30 was £28.6 million, falling 17% on-year from £34.5 million. Pretax loss was £2.8 million, widening on-year from £1.8 million.
Xaar declared no interim dividend, unchanged from last year.
The company said the fall in revenue ‘reflects the expected ongoing decline of the legacy ceramics market, order delays and earnings per share weakness’. Excluding ceramics, the business said it delivered new market revenue growth of 26%.
It said trading conditions for the first half of 2024 have been ‘consistent’ with those reported in the company’s 2023 results. Expectations for the full year remain unchanged, but market uncertainty persists, Xaar added.
Chief Executive Officer John Mills said: ‘We remain confident in our strategy which is increasingly demonstrating the unique capabilities of our printhead technology. Our pipeline of opportunities has increased in quality in both existing and new application areas and increasing numbers of [original equipment manufacturers] are engaged in, or actively planning, new product launches incorporating Xaar printheads.
‘Newly developed high viscosity inks enable us to fully utilise the unique technology of our printheads, and whilst the legacy ceramics market is challenging, masking our success in new market sectors, we have enhanced our customer integration capabilities and are already seeing the benefit in accelerated [original equipment manufacturer] project launches in other target markets.
‘We continue to focus on the elements of the business that are within our control, enhancing our technology, supporting customer adoption of our printheads, managing our cost base and strengthening our cash position demonstrating the benefits that Xaar’s unique capabilities can deliver to customers. We remain convinced of our ability to maximise the substantial opportunity we have.’
Shares in Xaar were down 1.7% at 99.80 pence each in London on Wednesday morning.
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