Xaar has issued an update highlighting that trading for the six months to 30 June has been in line with the Board’s expectations and that good progress is being made in implementing the new strategy. H1 revenue is noted to be £23.7m, a 7% decline relative to H1 FY2019, but sequentially in line with H2 FY2019. In the Printhead business, sales are no longer being made through distributors and OEM customers are now re-engaging with the group. New product development in printheads remains key to rev
Companies: Xaar plc
FY2019 was a very tough year for the Group, characterised by the decision to cease investment in its Thin Film technology and issues affecting the performance of the core Printhead business. The adjusted loss before tax was £69.8m and included a loss of £9.8m (FY2018 - £4.5m profit) in respect of continuing operations. Period end net cash was £25.3m and this provides the new management team with the resources to implement their strategy and to withstand the uncertain impacts of COVID-19 that are
The Group has announced interim results, which include the impact of the decision to cease its Thin Film operations, and also extensive Board changes. In view of the Stratasys transaction we remain restricted and can therefore provide factual comment only. Interim results show an IFRS loss before tax of £52.3m and an adjusted loss before tax of £15.0m. A separate announcement covers management succession that will see the Chairman, SID, CEO and CFO leave the Group.
Ahead of its interim results next week Xaar has announced a significant strategic development for Xaar 3D Limited, its 3D Printer business. Xaar has entered into an agreement with Stratasys that, if approved by shareholders, will see Xaar’s holding in Xaar 3D reduce from 85% to 55% and the issue of a call option that would on exercise see Stratasys own 100% of Xaar 3D. The statement comments that ‘[the group] is pleased that this transaction will create good value for Xaar shareholders and [that
Xaar has issued a trading statement together with an update on its strategic review of its Thin Film business and notification that it is to delay the interim results to 26th September (from 10th September). Whilst the statement confirms that first half revenue was £22.5m, trading for the remainder of the year is now expected to be weaker than previously anticipated. Second half revenues are now expected to be similar to the first half. The interims are being delayed to allow time to provide a m
Xaar has issued its scheduled trading update for H1 FY2019E that confirms trading is in-line with management expectations. The statement highlights underlying revenue progression of c.8%, excluding the impact of one-time royalties in H1 FY2018 and a £4m revenue reversal in H1 that is expected to be recovered in H2 FY2019E. There are many moving parts, which additionally include the potential impact from the Thin Film strategic review and the next phase in Xaar’s 3D Printing partnership with Stra
2018 was a difficult year for Xaar. Revenues from ceramics fell more sharply than the group had expected, while growth in sales of its new Thin Film products was delayed. Management reduced costs, while continuing to drive strategic progress, diversify the business and explore printhead partnering options to share costs/help maximise opportunities. However this was overshadowed by downgrades to profit expectations through the year, and ultimately a move into loss. Given this backdrop, the diffic
Xaar has provided an update for 2018, confirming underlying trading and year end net cash in line with its previous announcement from December. It has also highlighted a probable increase in provisions of c.£7m on the basis of prudency, subject to final audit. This is for inventory and debtors, driven by the previously reported slow ramp up of new product volumes in China, primarily its 1201 Thin Film printhead, due to integration issues. The increase in working capital is expected to reverse, b
Xaar has given an update on trading, which has missed management’s expectations for the final months of 2018. This has been driven primarily by continued declines in sales into its legacy ceramics end market, but also slower than expected adoption of the 1201 printhead. Revenues for 2018 are now expected to be c.£64m, c.£1.5m below our £65.5m forecast, however gross margin has also been impacted by a negative mix effect. We have not yet updated our forecasts, which we place under review, but wou
Redde (REDD LN) Positive start to FY19e, forecasts unchanged | Xaar (XAR LN) Appointments of CFO and Company Secretary
Companies: Xaar plc (XAR:LON)Redde Northgate PLC (REDD:LON)
Xaar updated the market last week that trading has been below expectations since the end of June. This has been driven by slower than anticipated adoption of the wellreceived new 1201 printhead and a continued aggressive decline in revenues from Xaar’s legacy ceramic tile printing market. The H1 18 results saw a fall in adjusted operating profit from £7.8m to £3.1m, a reduction in net cash to £36.8m and a rebasing of the dividend to 1.0p. We have cut our estimates to reflect the current difficul
Anpario (ANP LN) Solid H1 results | Be Heard (BHRD LN) Board changes | Future (FUTR LN) Completion of Purch acquisition | Horizon Discovery Group (HZD LN) Downgrade to Hold pending further details of investment plans | Quiz (QUIZ LN) Positive 5 mth performance with continued growth across all channels | Xaar (XAR LN) Disappointing results; positive strategic progress
Companies: ANP BHRD FUTR QUIZ XAR
Churchill China (CHH LN) Continuing to dish out premium growth | IFG Group (IFP LN) Operational progress, but still no clarity on HMRC investigation | Xaar (XAR LN) Trading below expectations; reviewing partnering options for printheads
Companies: CHH IFP XAR
Dunelm Group (DNLM LN) Resilient Q4 sales but heatwave means higher Sale stock (4% d/grade) | Liontrust Asset Management (LIO LN) FuM +9% in Q1, forecasts unchanged | Mobile Streams (MOS LN) Full year update | ReNeuron Group (RENE LN) In-line FY results highlight hRPC deal & upcoming Phase III start in Stroke | Xaar (XAR LN) Joint investment with Stratasys in newly formed Xaar 3D Ltd
Companies: DNLM LIO MOS RENE XAR
Ovoca Gold (to be renamed Ovoca Bio PLC) - RTO of IVIX, a Russian company developing a drug candidate for the treatment of female sexual dysfunctions. No monies to be raised, market cap of £8.5m, due 30 July
Nucleus Financial—independent wrap platform provider . FYDec17 revs £40.36m and PBT of £5.1m. Offer TBA. Due late July.
Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa
Companies: XAR ITX TCM KRM GYG ABC ULS WPHO HDD AFC
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AFC Energy’s statements and recent integration work with ABB highlight growing interest from customers which bodes well for orders in the months ahead. The forthcoming S-series of products will expand the Group’s portfolio and should deliver much high power densities and improved economics. The deployment of fuel cell technology is increasingly recognised by Governments and industry as a key tool in reducing global greenhouse gas emissions, which we expect will drive momentum for deployment in a
Companies: AFC Energy plc
Structuring the BUY case
Companies: Somero Enterprises, Inc.
AFC Energy announced that it has entered a hydrogen fuel cell supply and
collaboration agreement with partner, Urban-Air Port Limited (“Urban-Air”), a
leading UK developer of ground infrastructure for the growing demand in
autonomous airborne drones and electric take-off and landing passenger
XPD has reported strong H1 earnings with revenue up c.27% and adjusted PBT up c.74%; results were in line with our estimates. Revenue growth was strong across all three divisions - Freight Forwarding, Warehousing & Logistics and Transport Solutions. XPD benefited from continuing strong shipment and pallet flows in the CEE region, extra UK customs work related to Brexit, a partial turnaround in UK warehousing, and more DKV-linked fuel cards activity. Profit increased in Freight Forwarding and Tra
Companies: Xpediator Plc
Velocys continues to see supportive policies develop with the recent US proposed Sustainable Aviation Fuel tax credit adding to the potential attractiveness of projects in America. The company continues to progress its reference projects at Bayou in Mississippi and has provided technology under licence to Red Rock Biofuels in Oregon. Further policy support can only be helpful in growing opportunities for the company in North America in our view.
Companies: Velocys plc
Companies: Kier Group plc
Here we go again
Powerhouse’s partner HUI’s funding of long lead time items shows a commitment to the company’s first European project in our view. As with Powerhouse’s own funding of similar items at the initial UK project, this helps to de-risk the timeline and moves the company towards establishing a wider European market.
Companies: Powerhouse Energy Group PLC
Xpediator has announced a solid set of interim results, with revenue growing strongly across all three divisions, and group Adj PBT up c74% YoY to £3.6m. Xpediator has reaffirmed its FY21E Adj PBT guidance of in excess of £8.5m, with H2 being a seasonally busier period for the company. We update our forecasts to reflect increased expected working capital requirements during the year, leaving all other projections unchanged. Trading on a T+1 EV/EBIT of 10.8x, Xpediator remains at a 32% discount t
Companies: DX (Group) Plc
Companies: Staffline Group plc
Companies: SThree plc
Despite the challenges presented by the pandemic, TP Group Plc delivered strong organic revenue growth of c14% YoY in H1/21A, with Adj EBITDA increasing to £1.7m (H1/20A: £1.4m). Improving visibility leads us to upgrade our revenue forecasts by c4% for FY21E to £66.0m (90%+ of which was covered by the order book at H1/21A). Expanding margins in the Consulting division are expected to be offset by temporary margin pressure on Engineering contracts during FY21E (our £4.2m FY21E EBITDA remains unch
Companies: TP Group Plc
Oil gained a third week as investors focused on the ongoing production shut-ins in the US Gulf of Mexico as more refineries have resumed operations nearly two weeks after Hurricane Ida tore through the region.
Futures in New York posted its longest set of weekly gains since July after ending Friday 2.3% higher. More than a million barrels a day of US offshore crude production remains shut in after Ida swept through the area nearly two weeks ago. Meanwhile, more Louisiana refineries are resumi
Companies: FO 88E DEC EME GTC TRIN UOG WEN
H1 results reveal continued strong progress, with closing ARR up c.25% LFL at £6.6m driven by new subscription agreements, importantly validating CKT’s growing investment in sales and marketing with headcount doubling in H1. Meanwhile, CKT’s pipeline is up 4x since the start of the year so we anticipate growth to be maintained (or even accelerate) in H2. In this context, CKT is tracking comfortably in line with unchanged FY22 estimates, having achieved sales of £7.9m, ~53% of our full-year forec
Companies: Checkit plc