News

Inkjet printhead manufacturer Xaar has reported an improved financial performance since the beginning of the year, but has not returned to levels of a year ago.

The Huntingdon-based firm, whose products are used in coding and marking applications, recorded £21m revenue for the six months to 30 June, a 7% drop on the same period last year, although up from the £17m recorded in the second half of 2008. It reported a pre-tax loss of £778,000 from a £3.8m profit last year.

China continues to be Xaar's biggest market and new product launches and aggressive pricing have helped it regain market share, and the Americas have also shown signs of growth.

But European take up of the firm's new products had been insufficient to offset the continued decline in the wide-format graphics and coding and marking business, the firm said in a statement.

Chairman Phil Lawler said the board was encouraged by improved trading and said commercial inkjet printing would continue to be a healthy business in the medium term.

"But the continuing lack of visibility and uncertainty in the economic environment means that caution must be maintained when looking forward," he warned.

Xaar is currently in the process of moving equipment from its Swedish plant so all production takes place at its facility in Huntingdon.

Meanwhile, printing giant HP has recorded a 21% drop in pre-tax profit of $2bn in the three months to 31 July as revenues fell by 2% to $27.5bn.

Chief executive Mark Hurd said business was stabilising and was confident "HP would be an early beneficiary of an economic turnaround".

XAAR RESULTS FIRST HALF 2009

Revenue £20.9m (£22.5m in 2008)
Operating loss £848,000 (£3.6m profit)
Pre-tax loss £778,000 (£3.8m profit)