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Xaar’s final results for FY23 are in line with revised guidance. The figures feature adjusted EBITDA at £6.4m (FY22: £6.2m), with good performance from EPS, FFEI and Megnajet. This was achieved despite a weak end market that delayed product debuts and affected H2 23 and Q1 24 revenue. The reported PBT loss of £2.4m reverses last year’s £0.8m profit, but pleasingly Xaar sees no further deterioration. CEO John Mills concludes that while the external trading environment ‘remains challenging’, the p
Companies: Xaar plc
Progressive Equity Research
Xaar has reiterated the message from its November trading update, with both revenue and profit expected to be within the previously announced ranges (£70-72m and £2.5-3m, respectively). Cash of £7.1m at 31 December 2023 is ahead of management expectations and significantly up on the £3.7m reported at 28 November, which we assume is due to a combination of working capital improvements and tight control over costs. The outlook for FY24 ‘remains as stated in the November update’; at that time, the
Xaar has released a trading update for 2023 that includes cautious commentary around 2024. The group is expecting a strong end to the year in terms of profitability, albeit with depressed revenue levels. Sales pressures are expected to continue in 2024 and, combined with downward pressure on prices and cost inflation, are likely to lead to a materially reduced level of profitability. We alter our estimates for both years to reflect the update. Although the group is clearly navigating tough marke
Xaar recently held a product demonstration event, targeted mainly at customers and its expanding ecosystem. The day was well-attended, with demonstrations of both the theory and the practical reality of Xaar’s technologies. We came away reassured of the group’s strong position in multiple, diverse markets. Adoption of new technologies always takes time, but once embedded these platforms seem destined to provide value-for-money, environmentally friendly printing across a wide range of use cases.
Xaar’s results for the six months to 30 June show strong strategic progress. Despite a difficult trading environment, H1 performance was in line with expectations and management is confident that it is on track to meet FY23 guidance. Revenue in H1 23 was down 6% to £34.5m due to a combination of economic conditions and a strong comparative in the prior year. Adjusted profit before tax for the period was up 29% to £1.8m, benefitting from the sale of non-core IP, and the gross margin remained stea
Xaar’s trading in H1 23 remained steady, with adjusted profit buoyed by the sale of non-core IP. We would hope that this might allow upward revisions to forecasts, but hold back for now pending full H1 results in September when the pace and scale of the expected recovery in trading with China will be more apparent. Despite a slight decrease in revenue to £34.7m (H1 22: £36.6m), reflecting current economic conditions, we anticipate FY23 overall will benefit from the China reopening, as well as th
Xaar has delivered a strong FY22, in line with our expectations (or better) at all levels of profitability and with good cash generation. We make no changes to our FY23 revenue and profit estimates; a strong reopening of China could prompt upgrades but is likely to take time, and a general macro caution precludes our taking action at this point. We look forward to further positive developments as the year progresses, notably around the new Aquinox product, and hope to introduce FY24 estimates as
The turnaround of Xaar in recent years has been driven by effective and clear management action. The business has been stabilised and realigned with its markets, new products released, and small but strategic acquisitions made. In amongst all this, it is easy to overlook the underlying technology, particularly how it compares with the competition and the opportunities that lie ahead. With the business on the front foot again, we highlight how the structure and design of Xaar’s printheads pro
Xaar’s update for the year ended 31 December 2022, issued today, states that revenue is expected to be c.£74m and adjusted PBT ‘on track’. This revenue figure is slightly ahead of our estimate but more importantly 24% ahead of the prior year, with much of this growth having been organic. We adjust our expectations for FY23 to reflect an element of ongoing caution on China, as well as cost increases across the business. However, with its aqueous printhead, Aquinox, successfully launched and the
Xaar announced on Wednesday the release of its Aquinox printhead for use with water-based inks. This is a major step forward for Xaar and for aqueous inkjet printing. Aquinox is the latest printhead to work on Xaar’s ImagineX platform and helps open up new markets, most notable packaging and textiles. It also enables Xaar to take advantage of increasing demands in other markets, notably ceramics.
The interim results for the six months ended 30 June 2022, released today, provide further evidence that Xaar is back on a growth path. H1 22 revenue was up 39% on H1 21 and 11% on H2 21. Organic growth was a very impressive 14% H1 on H1. These figures actually mask even stronger underlying progress, as the Printhead business was significantly constrained by the continued Covid-19 lockdown restrictions in China. Xaar is on track to launch its new aqueous printhead product in Q4 2022. The recent
Xaar’s H1 trading update for 6M ended 30th June 2022, issued yesterday, confirms that the group is trading well, with increased revenues, improving margins, costs under control and new products launching to schedule. Xaar is clearly back onto a robust growth trajectory. We are maintaining our forecasts and look forward to the interims in September as an opportunity find out more about how the momentum is building.
With a clear roadmap of new digital inkjet products and an ambitious management team focused on gaining (or retaining) significant market shares across the segments that make up its $1bn addressable market, Xaar is positioned to grow strongly. Management has already demonstrated its abilities in turning the business around, and we believe it is far from clear that the share price fully reflects the opportunities ahead.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Xaar plc. We currently have 0 research reports from 7 professional analysts.
The FY24 year-end update is very upbeat signalling trading being materially ahead of expectations, with a better-than-expected profit out turn and stronger cash generation. It continues to strengthen margins through efficiencies and investment in modern equipment. The order book remains close to record levels providing a robust view of future forecasts. In FY24E we upgrade EPS by 11% and in FY25E a significant upgrade of 27.6%. It looks capable of declaring a dividend in FY25 as well as manageme
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Cavendish
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Another Good Year of Diversified Growth with More to Come in 2024 CCapital have released their Q1 operating results. Overall, revenue has come in slightly lower than expected at $80.2m vs TamE of $85.9m but is largely tracking in line with our FY24 annual estimate and we note the company has maintained guidance. Drilling revenue for this quarter was impacted by a fall in utilisaztion rates as well as general remobilisation geographically but we expect a strong recovery throughout the year as k
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Tamesis Partners
FY23 results show very strong growth over FY22, driven by strong Structural Steel activity, with results slightly ahead of upgraded profit expectations, while stronger than expected cash flow resulted in an unexpectedly generous dividend of 33p (offering a FY23 yield of 7.0%). The group now has net cash of £22.1m and is debt free and is therefore in a strong position for potential M&A activity. Following the recent £90m of new orders to increase the order book to record levels we conservatively
Companies: Billington Holdings Plc
Plant Health Care announced it has signed a distribution agreement with AMVAC, an American Vanguard Company, to support commercialisation of novel fertiliser products incorporating Plant Health Care's Harpinαβ in China starting in 2024. The novel product combines Harpinαβ technology with an AMVAC fertiliser and is expected to help growers improve crop quality and yield as part of an integrated and environmentally responsible crop production programme. AMVAC continues to evaluate Plant Health Car
Companies: Plant Health Care PLC
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discoverIE’s March year-end update confirms a strong operational performance in challenging markets. Following two years when sales increased by +48%, FY 2024 Group sales were +1% ahead of 2023 at CER (reported -3%) driven by a +2% contribution from acquisitions and organic -1%. As expected, organic growth returned in the later part of the year (Q4 +2%, +11% sequentially) and the order book has reverted to normalised levels of c.4.5 months’ sales, which – combined with a continuing strong pipeli
Companies: discoverIE Group PLC
Severfield’s trading update indicates that FY23 results are expected to slightly exceed market expectations and the company ends the year with a record UK and Europe order book. Furthermore, with a positive trading outlook and net debt coming in lower than expected, Severfield has announced a £10m share buyback, highlighting the cash-generative nature of the company and management’s confidence in its position. The stock trades on an FY25 P/E of less than 6x and yields 7%, which we believe appear
Companies: Severfield Plc
Edison
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Canaccord Genuity
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SP Angel
Acquisitions have been an important element of Severfield management’s growth strategy, with the aim of adding new products, sectors and regions to what we have identified as exciting long-term organic opportunities. In this Spotlight report, we focus on the group’s targeted M&A approach, highlighting three significant deals.
Liberum
Invinity’s update on discussions with strategic investors reveals interest from multiple parties. While this has slightly delayed finalising an agreement it increases the potential for a better outcome. Although details are unknown at this stage, we think there is enough in the statement to be comfortable that any agreements will be consistent with the company’s strategy of growing market share in core markets and using a licencing and royalty model in other markets.
Companies: Invinity Energy Systems PLC
Longspur Clean Energy
Severfield’s full-year results to March will be ‘slightly above’ the Board’s expectations, according to today’s trading update, with net debt significantly better. We maintain our PBT estimates for both forecast years, which are ahead of consensus, but reduce our net debt for FY24E. Record orders were boosted by the steel specialist’s European operations, after last year’s Voortman acquisition, while the Indian JV has seen ‘another step up in profitability’. The group has also launched its first
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