Positive H1 results. Despite turbulent trading conditions and geopolitical uncertainties, Xaar delivered an in-line performance. Revenue fell 6% y-o-y to £34.5m and gross profit margin was flat y-o-y at 40% despite inflationary pressures and temporary factory closures, while adjusted EBITDA increased by 17% to £3.5m supported by favourable sales mix and stringent cost management, and adjusted PBT increased 29% to £1.8m which was in line with expectations. The balance sheet remains in a robust position with £7.3m net cash following a period of working capital investment. New product launches instil confidence. Xaar is beginning to reap the benefits of its continuous R&D investment (typically 8-10% of revenue) as customers validate Xaar technology with an anticipated 16 new customer product launches in H2’2023. With clear visibility on its customers’ scheduled new product launches, we believe our FY23E forecasts are de-risked. Compelling opportunity in 3D-Printing. Xaar has a 2% market share of the £200m high viscosity 3D printing market. A number of opportunities are emerging in 3D-printing, most notably (for Xaar) in wax printing. Xaar offers the competitive advantage of printing high viscosity fluids at high temperatures with increased resolution and throughput. With multiple customer product launches planned in the next 6-12 months, 3D-printing is expected to account for a significant component of the group’s future growth. Outlook. Despite positive momentum continuing into H2’23, we make no change to forecasts as we remain cognizant of the wider macro uncertainties. We are confident in the long-term prospects of the group and believe Xaar is well positioned to capture new growth opportunities and gain market share.