Investment summary

Xaar has announced that all nine staff at its office in China have resigned following a dispute over alleged unfair treatment of staff and Chinese customers. This is obviously unwelcome news, but direct exposure to China has now fallen to c 12% of sales (from 50% in 2007) and product supply channels are not expected to be affected. Therefore, a repeat of the significant disruptions to business, witnessed in 2006 and 2008, looks unlikely. Forecasts are unchanged.

Last updated on 24/01/2012

Industry outlook

Opportunities for P3 products look significant. Demand from the ceramics market is the primary driver, where manufacturers are looking to invest in expanding their digital production capacity. This opens up significant incremental revenue streams. The market for Xaar's P1 printheads, which are used in outdoor advertising and case coding, is starting to mature. With the competition taking share in H1, the trajectory from here is hard to gauge.

Last updated on 09/12/2011