Xaar reports strong position due to packaging revenue

Xaar has released an encouraging trading update showing 2015 business performance to be in line with the board’s expectations.

Xaar printhead

The digital inkjet technology developer expects to report total revenue for the year of approximately £93.5m.

The positive projection comes despite the anticipated softening in demand for ceramic tile printing in China, as revenue growth in packaging helps to offset it.

As a result of improved operating efficiency at Xaar’s manufacturing sites in Sweden and Huntingdon, UK, it now expects to deliver an adjusted operating margin of 20% in 2015.

The company’s preliminary results for 2015 are expected to be announced on 16 March.

Xaar recently announced a new family of piezoelectric printheads for printer manufacturers (OEMs) developing machines for coding and marking applications.

The new printheads (launching later this year) will all have a 17mm print swathe, suitable for high-resolution coding and marking applications such as printing barcodes, best before dates and other product identification codes onto a range of packaging.