Strong demand in the ceramic and digital labels sectors has led to a
rise in orders for Xaar's Platform 3 printhead products, the inkjet
specialist has reported.
In a trading update for the six-month period to 30 June 2010, the
company said that revenues were ahead of the same period last year and
in line with board expectations.
Sales of Xaar's Platform 1
products remained stable during the period, while demand for its
Platform 3, which includes the flagship Piezo 1001 printhead, continued
to "increase significantly".
According to chief executive Ian
Dinwoodie, the increased demand has stemmed from the growing volumes in
both the ceramic and digital label sectors.
As a result of the
increased sales of its Platform 3 products, the manufacturer is
continuing to increase capacity at its Huntingdon, Cambridgeshire, plant
with plans to double it in the coming months.
Net cash and cash
equivalents at 30 June 2010 were around £8.2m, compared with £11.1m on
31 December 2009 and £10.3m on 30 June 2009.
According to Xaar, this comes after £2.8m of capital expenditure and £900,000 of dividends paid during the six months.
Xaar
also confirmed that the board intended to pay an interim dividend. The
company will release its half-year results on 18 August.