Business
Period end update & new broke
Period end update & new broke.
About this update from Xaar Plc
[{"type":"text","content":"\n RNS Number : 8495Y Xaar PLC 11 July 2008 \n \n\n\n\n\n\n\nFOR IMMEDIATE RELEASE\n\n\n11 July 2008\n\n\n\n\n\n\nXaar plc\n\n\nHALF YEAR PERIOD-END TRADING UPDATE\nand\nCHANGE OF FINANCIAL ADVISER AND BROKER\n\n\nXaar 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.\n\n\nTRADING\n\nAs 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. \n\nRevenue 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). \n\nAt 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...