Xaar reports growth in revenues, margins and profits


14-03-2006

Xaar plc, the inkjet printing technology group headquartered in Cambridge, has announced its audited results for the year ended 31 December 2005.

The results reflect a year of excellent progress with growth in revenues, margins and profits.



Reported under IFRS, the financial results for the year were:



  • Turnover was up 23% to 42.8m (2004: 34.8m);



  • Profit before tax* jumped 69% to 11.0m (2004: 6.5m);



  • Operating profit was up 66% to 10.5m (2004: 6.3m);



  • Operating profit margins improved to 24% (2004: 18%);



  • Adjusted basic earnings per share* increased 62% to 12.8p (2004: 7.9p); and



  • Net cash and cash equivalents at 31 December 2004 were 14.4m (2004: 15.3m).



    * stated before non-trading foreign exchange movements on inter-company loan: loss of 1.0m (2004: loss of 0.2m)



    Cash investment in the business during the second half of 2005 included initial spend on the new manufacturing plant, increased working capital to support the expanded level of business and funding of the purchase of Xaar shares for staff share incentive plans. The proposed annual dividend per share increased 50% to 1.5p (2004: 1.0p).



    Xaar's new manufacturing plant is to be located in Huntingdon, Cambridge and is scheduled to commence production by the end of 2006. Planned investment of 10m will create initially 30 new jobs.



    On outlook, Chairman, Arie Rosenfeld stated : 'Our sales of established products continue to grow and our new products launched in 2006 will add growth in the medium term. For the longer term we have further new products due for commercial launch in 2007, together with an expanding range of applications ready to adopt them.'



    'The Board looks forward to another year of positive results in 2006.'





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    For further information, please contact:



    Xaar plc: Ian Dinwoodie, Chief Executive; or

    Nigel Berry, Group Finance Director and Deputy Chief Executive today: 020-7367-8888

    thereafter: 01223-423663



    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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