Ceasing Thin Film activities The strategic review of the Thin Film business has concluded that without a partner to share the funding, Xaar is unable to fund the ongoing investment required to fully bring this technology to market. It has therefore reluctantly decided to cease further investment and all activities related to this programme. There is an associated £39.0m impairment taken in 1H19 to write down the carrying value of the capitalised R&D and all other assets involved in Thin Film. Unable to fund further investment We need to fully understand the level of investment that was expected to be required in the coming years for Thin Film as we had understood that the 5601 printhead was ready for integration into customer machines and launch into the market in 2020. Clean sweep of the Board CEO, Doug Edwards, is stepping down to explore opportunities back in the USA where his family is based, he leaves on 31 December 2019. CFO, Shomit Kenkare, has resigned and also leaves on 31 December 2019. New CEO designate, John Mills, who joined in August 2019 as head of the Printhead Business Unit, will take over on 1 Jan 2020. John worked for Domino Printing from 1994-2001 and most recently was CEO of Inca Digital for 5 years until October 2018. Chairman, Robin Williams, will step down after the FY19 results (March 2020) to provide continuity for the new CEO. Current NED, Andrew Herbert (ex Domino Printing CFO), will take over as Chairman which we see as a positive move. 1H19 net cash of £22m worth 27p If shareholders approve the 15% share sale of the 3D printing business, this is worth c.15p per share in the near-term with scope for another c.30p within the next three years for the remaining shares (giving an extra 45p per share in total). Add this to the current 27p of net cash, and assuming this doesn't go down further, it implies up to 70p per share within three years. The EPS product print business is profitable. You could then be getting a free ‘option’ if some value can be generated from the legacy Bulk/P3 printhead technology going forward on a restructured cost base.