Shares in printing firm Xaar plummet by a fifth after delivering second-half sales warning

Oliver Gill
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FTSE 250 firm Xaar is headquartered in Cambridge (Source: Getty)

Inkjet printing firm Xaar disappointed investors today, warning on struggling sales and downgrading guidance on full-year profits.

Shares in the London-listed firm fell by a fifth in morning trading.

The Cambridge-based firm, which supplies industrial printheads, said growth in revenues in the second half of 2017 will not hit guidance. Instead, sales over the second six months of the year would be "broadly in line with the first half".

Xaar said it was "disappointed by the revenue shortfall" but stressed it was reducing dependency on its troubled legacy ceramics business.

Read more: New boss in the hot seat at print firm Xaar

Demand for some printheads is strong, the firm added - although one of its products, the 1201 printhead, experienced "supply constraints".

Analysts from N+1 Singer cut their full-year profit forecast for the firm by almost a third in the wake of today's announcement.

N+1 analyst Jo Reedman said:

These downgrades are disappointing. However, it is notable that the issues relate to the decline of Xaar’s legacy ceramics business, along with short-term issues in meeting demand for the new graphics product. Demand continues to grow for the portfolio of new products introduced in the last two years.

Read more: Xaar share price crashes 23pc with revenue set to fall

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