Xaar ups expectations after strong first quarter

Ink-jet printing specialist Xaar enjoyed significant year-on-year sales growth in the first three months of 2013 and guided towards increased expectations for the full year.

Ink-jet printing specialist Xaar enjoyed significant year-on-year sales growth in the first three months of 2013 and guided towards increased expectations for the full year.

The company saw the strong rise in revenues from both its industrial and packaging markets, supported by modest recovery of growth in the graphic arts market, which had fallen in the last full year.

Operating margins in the first quarter benefited from the growth in sales but are expected to soften later in the year as the company ups its spending on expanding manufacturing capacity at its Huntingdon plant and increased R&D spending.

The Cambridge-based group reported that net cash had grown from £28.9m at calendar year end to £41.7m at March 31st mostly due most of the year's capital expenditure coming in the second half of the year and a reduction in net working capital.

The board stated that it remained confident that strong growth in revenue and profit will be achieved in 2013 versus 2012 and in the trading statement wrote: "The trading performance in the first quarter, combined with the strength of the forecast for the remainder of 2013, have increased the board's expectations for the year."

OH

Recommended

Share tips of the week – 22 October
Share tips

Share tips of the week – 22 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
22 Oct 2021
Three dividend stocks from the dynamic Asia/Pacific region
Share tips

Three dividend stocks from the dynamic Asia/Pacific region

Professional investor Sat Duhra of the Henderson Far East Income investment trust highlights three of his favourite stocks.
18 Oct 2021
Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021

Most Popular

How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021
How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021
The after effects of the gas-price shock
Economy

The after effects of the gas-price shock

In the wake of the recent spike in the natural gas price, we can expect slower growth, an industrial recession – and a newly assertive Russia, says Ma…
17 Oct 2021