Business
Trading Update for FY 2006
Trading Update for FY 2006.
About this update from Xaar Plc
[{"type":"text","content":"\n Xaar PLC\n07 December 2006\n\n\nFOR IMMEDIATE RELEASE 7 December 2006\n\n Xaar plc\n\n TRADING UPDATE FOR YEAR ENDING 31 DECEMBER 2006\n\nXaar plc ('Xaar' or the 'Company'), the inkjet printing technology group\nheadquartered in Cambridge, UK, presents an update on its expected performance\nfor the year ended 31 December 2006.\n\nIan Dinwoodie, Xaar's Chief Executive said:\n\n'We are pleased that we can now move on from the issues which have affected\nperformance during the past six months, allowing us to focus our efforts on\ndriving future growth.'\n\nResults for 2006\n\nXaar is pleased to report that sales to China have recovered progressively since\nthe Company's trading update in early August and are now expected to recover\nfully by early 2007.\n\nThe new logistics arrangements for the Chinese market have been implemented and\nare working well with product shipped directly into mainland China for\ncollection by customers from one of two bonded warehouses. This has created a\nrobust platform for future sales to the region. As part of the new trading\narrangements, the Company has implemented sterling pricing and invoicing. This\nreplaces the previous invoicing currency, the US dollar, and has removed the\nmajority of the Company's US dollar exposure.\n\nThe Company's Platform 2 product, the OmniDot, continues to generate interest\nand product launches incorporating it are expected during the course of 2007.\n\nSubject to trading for the remainder of December, it is anticipated that the\nresults for the year will be in line with Directors' expectations.\n\nNew production facility\n\nThe Company's new Huntingdon production facility, which will manufacture the\nXaar 1001 (HSS) product range, is on target to begin commercial production in\nJanuary next year. Interest continues to build in this product range and the\nCompany expects its test partners to begin commercialising equipment over the\nnext twelve months.\n\nInitially the fixed costs of the new production facility are expected to be\n£2.5m per annum; these costs, and the associated early sales revenues from the\nXaar 1001, will be reflected in the results of the Company for the first time in\n2007. Whilst this is expected to have an effect on overall reported margins, the\nDirectors view the coming year with confidence.\n\nAnnouncement of preliminary results for 200...