Business
Trading Update
Trading Update.
About this update from Xaar Plc
[{"type":"text","content":"\n\n29 November 2023\n \nXAAR plc \n \nTRADING UPDATE\n \nXaar plc (\"Xaar\", \"the Group\" or \"the Company\"), the leading inkjet printing technology group, today provides a trading update.\n \nPROFIT AHEAD OF EXPECTATIONS FOR 2023\n· Through disciplined cost management, a favourable product mix and new customer product launches the Group is expected to deliver an adjusted profit before tax of between £2.5 million and £3 million, which is ahead of Board expectations.\n \n· Trading conditions have become more challenging in H2 2023 due to the wider economic environment. As a result, 2023 full year revenues are expected to be between £70 million and £72 million.\n \n2024 OUTLOOK\n \n· The Board anticipates that weaker demand during Q4 2023 will continue into 2024, and together with delays in some customer product launches, will result in lower revenue and adjusted profit in 2024 than previously anticipated. We are optimistic and remain focused on delivering significant opportunities in our customer pipeline.\n \n· In 2024 the Group also faces the full effect of increased input costs. The lower than previously expected revenue growth in 2024 will not be sufficient to fully absorb the additional costs, which will impact Gross Margin.\n \n· The Group continues to implement initiatives designed to improve operating efficiencies throughout the organisation and to reduce operating costs, whilst continuing to deliver on our strategic plan.\n \n· The Board remains confident in the medium-term outlook as our opportunities continue to strengthen and further product launches are expected in 2024. This provides confidence in delivering our mid-term growth plans, whilst ensuring a balance between targeted investment and expected returns in the short term.\n \nBALANCE SHEET\n \nThe Group remains well capitalised with a strong balance sheet and with a net cash position of £3.7 million as at 28 November 2023 which is in line with management expectations. The Group also has an undrawn revolving credit facility of £5m.\n \nJohn Mills, Chief Executive Officer, commented:\n\"Whilst the external trading environment is challenging, we remain focused on the delivery of our str...