H1 results summary. As expected, revenues declined -17% y-o-y to £28.6m due to the ongoing decline of the legacy ceramics business; this offset the progress made in non-ceramic printhead revenues which delivered growth of 26%. Gross profit declined 27% to £10.1m, resulting in a gross profit margin decline of 500bps to 35%; this was driven by reduced overhead absorption and higher energy costs, while operational efficiency actions reduced operational expenses by £3.4m during the period. Xaar delivered an adjusted loss before tax of -£0.7m versus £1.8m profit in H1’23. Encouragingly, disciplined cash management increased the Group’s net cash position by 10% to £6.8m. To support the growing pipeline of new product launches the Group continues to invest in R&D, and £2.4m was invested in H1’24 compared to £2.6m in H1’23. Outlook. Market uncertainty prevails; however, we do expect H2’24 to improve modestly. Despite market conditions, Xaar has a strong pipeline of opportunities in both existing and new applications which underpin future growth prospects. Encouragingly, forecasts remain unchanged. Multiple future growth opportunities. Longer-term, compelling growth opportunities are emerging as customers continue to validate Xaar technology, evidenced by multiple new product launches scheduled over the next 6-18 months (14 launches scheduled in FY24). Therefore, we are confident in the growth prospects of the group and believe Xaar is well positioned to capture new revenue opportunities and gain market share. Valuation. A positive trajectory in its end markets in H2, complemented by new product launches, should start to de-risk our FY25E forecasts. On this basis, an FY25E EV/EBITDA multiple of 8.1x could provide good value.