Xaar to invest up to 10m in major new manufacturing facility


15-09-2005

Xaar plc, the inkjet printing technology group headquartered in Cambridge, is to invest 10m in a major new manufacturing plant to be established in the UK to provide for future sales growth and the launch of new products.

'Xaar's plans to spend up to 10 million and employ 30 people in a new manufacturing facility in the Cambridge region is aNigel Berry, FD at Xaar great vote of confidence in our technology and how much further it has to go,' said Nigel Berry, FD.



'It is also a vote of confidence in Cambridge as a centre of ink-jet printing. We need production close to R & D, which is located on the Cambridge Science Park, and as our technoogy is capital-intensive rather than labour-intensive, the lure of the Pacific Rim is not so strong in our case.'



When pressed on location, Nigel said that the location was likely to be within 30 miles of Cambridge and probably North and West.



Xaar has just announced its unaudited results for the six months ended 30 June 2005. The results show continued strong growth in sales, profit and cash.



The financial results (reported under IFRS) were:



- Turnover was up 19% to 19.8m (2004: 16.6m);



- Profit from operations* jumped by 86% to 4.6m (2004: 2.5m);



- Margin from operations* improved to 23% (2004: 14%);



- Profit before tax was 3.5m (2004: 1.3m);



- Earnings per share* were 5.6p (2004: 3.0p);



- Net cash and liquid resources at 30 June 2005 increased to 17.5m (2004: 9.9m); and



- The net effect of adopting IFRS was to increase profit before tax by 0.3m (2004: 0.1m).



* stated before non-trading foreign exchange movements on inter-company loan: loss of 1.3m (2004: loss of 1.3m)







  • Increased sales were achieved in each principal territory and industry segment.



  • Although an interim dividend is not being paid (2004: nil), a final dividend for the year is expected to be declared (2004: 1p).



  • Successful launch of Xaar's new OmniDot product range with equipment from Agfa already commercialised.



  • Business development is yielding initial development revenues from new markets.



  • A minority investment has been made in integration partner, Xennia Technology.



  • Robert Eckelmann, formerly with Intel, has been appointed as a .





    On outlook, Chairman, Arie Rosenfeld stated: 'All of our core markets met or exceeded expectations during the period and the board expects to achieve a satisfactory result for the year as a whole.'



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    Contacts



    Xaar plc:

    today: 020-7367-8888 Ian Dinwoodie,

    Chief Executive



    Thereafter: 01223-423663 Nigel Berry,

    Group Finance Director & Deputy Chief Executive



    Bankside Consultants:

    Steve Liebmann

    020-7367-8883 / 07802-888159





    This information is provided by RNS



    The company news service from the London Stock Exchange
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