FY21 outturn: Revenue increased 12% organically y-o-y and gross margins improved 700bps to 34.1% (490bps ahead of our estimate) as higher printhead volumes drove improved overhead recovery. Sequentially improving revenue was seen in the key end market of Glass and Ceramics (+38%). All businesses contributed positive EBITDA, including the restructured EPS division. Adjusted EBITA (on our basis) was £0.5m ahead of our estimated loss at £1.9m. Adjusted LPS was 27% better than our estimate at -0.7p. Net cash was in line at £25.1m. Re-engaged customers: Xaar continues to gain traction with its expanding customer base. Previous customers are coming back and new customers are attracted by the unique capabilities of Xaar printheads. The management team have rebuilt the customer and product pipeline, and are now more confident in Xaar’s ability to convert these into increased printhead volumes over the coming years. We are encouraged by the increasing linkage between new products and the addressable markets, which we understand combine to be over £800m within the next three years. Outlook: FY22 has started well, in line with management expectations. Supply chain issues in 2H21 have been resolved with higher inventory levels (£9m invested in FY21), with Xaar now holding enough components to meet its 2022 production expectations. The Magnajet acquisition is integrating well. Sustainability targets: Xaar has set out its new sustainability roadmap. Forecasts: We upgrade our revenue estimates to reflect the increasing momentum and reflect the better-than-expected FY21 gross margin base year. Higher cost expectations currently offset these to leave EPS estimates unchanged in FY22E and FY23E. New TP: We move to use CY24E as the basis for our TP, up 55p to 300p.