Companies: XAR   

Inkjet printing specialist Xaar warns of disappointing Chinese sales after lifting interim profits 20 per cent to £3.75 million pre-tax.

The fully listed company, which hopes its technology will play a leading role in a continuing switch to digital inkjet printing, saw turnover fall £9 million to £22.5 million in the six months to June, largely because of lower than expected sales into the important Chinese market. Despite this, Cambridge-based Xaar managed to increase margins and improve profitability.

However, chairman Phil Lawler says the company now believes sales of its ‘mature’ products to China will also be lower than previously expected in the second half year and warns this time the shortfall ‘will have some effect on second half profitability’.

By contrast, Xaar, which has replaced Panmure Gordon with Landsbanki Securities, reports an encouraging reception of its newer ‘Platforms 2 and 3’ technologies by original printer equipment makers around the world.

Xaar shares, which hit 338p two and a half years ago, have lost two-thirds of their value since then. They now trade at 110.25p, down 11.25p this morning, which puts a £69.3 million price tag on the company.

Save 50% off your first year’s subscription to Growth Company Investor magazine, and gain immediate access to all the recommendations online. Click here.

Xaar	LSE	£32.39m	51.50p	-0.50p
Click here for interactive charting
Other company articles:
Xaar			21/08/2008
Xaar fears China shortfall			20/08/2008
Xaar			13/03/2008
Fund Manager Focus by Pauline McCallion			09/08/2007
Xaar closes bid talks			14/02/2007