Xaar’s year end update confirmed sales in the middle of its £92-95m guidance, as sales growth to packaging markets offset the anticipated softening in demand from ceramic tile printing in China. However profitability was higher than expected due to improved plant efficiency in both Sweden and Huntingdon. We have increased our adjusted PBT forecast for 2015 by 10%, but left subsequent years unchanged reflecting the still uncertain backdrop in China and potential for margin reversal in the Swedish facility as it approaches closure. Net cash increased to c.£70m (c.91p per share), a little ahead of our expectations. The prelims are scheduled for 16th March.
