Key points:
- The record results achieved in 2012 were driven by the continuing success of Xaar's disruptive technology, particularly in the digital decoration of ceramic tiles.
- The growth in sales in 2012 was supported by the successful completion of a £22m capacity expansion programme at Xaar's Huntingdon facility. Further capacity will now be added during 2013 to support the demand for Platform 3 products in ceramics and other applications.
- Xaar invested £8m in R&D during 2012 (9% of revenue), including a 50% growth in R&D staff, to support the Group's plans for product and technology development.
The financial highlights were:
- Revenue was up 26% to £86.3m (2011: £68.7m);
- Gross margin improved to 47% (2011: 44%);
- Adjusted* profit before tax was up 74% to £18.4m (2011: £10.6m);
- Reported profit before tax was £15.7m (2011: £9.1m);
- Adjusted* diluted earnings per share up 88% to 20.1p (2011: 10.7p);
- Reported diluted earnings per share at 16.9p (2011: 10.4p); and
- Net cash** at 31 December 2012 was £28.9m (31 December 2011: £17.4m).
* Before share-based payment charges, exchange differences relating to the Swedish operations, gain or loss on derivative financial instruments and impairment of trade investments (see the reconciliation of adjusted financial measures)
** Cash and cash equivalents, treasury deposits less borrowings
A final dividend of 3 pence is recommended, which would increase the total dividend for 2012 by 33% to 4 pence (2011: 3 pence).
Commenting on the results, Chairman, Phil Lawler stated: "During the twelve months ended 31 December 2012, our patented inkjet technology demonstrated its market leadership and is now dominant in the digital decoration of ceramic tiles around the world. Our results for the year also benefited from the successful implementation of our investment in expanding manufacturing capacity."
Ian Dinwoodie, CEO, added: "During 2013, in response to demand for Platform 3 ("P3") products in ceramics and other applications, we will expand the P3 manufacturing capacity further than previously announced, and release more products in support of our strategic objectives. This should underpin Xaar's growth prospects for both the short and the medium term. Platform 4 ("P4") research and development spending will accelerate over this period, positioning the Company to deliver further growth over the longer term horizon."
www.xaar.com
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Contacts
Xaar plc:
01223-423663
Ian Dinwoodie, Chief Executive
Alex Bevis, Finance Director
N+1 Singer:
020-7496-3000
Shaun Dobson
Bankside Consultants:
020-7367-8888 or 07771 758517
Simon Bloomfield
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