Financial highlights
As previously reported, sales into the Group's largest end application, ceramic tiles, suffered a step-down in demand in the second half of the year due to the slowing property and construction markets in China
Total annual Group adjusted revenue reduced by 19% in 2014 following the exceptional growth into ceramics experienced in 2013
Strong profitability was achieved in 2014 despite the lower level of sales; gross margin of 44.5% and adjusted operating margin of 22.2%
Gross R&D investment (before capitalisation of development costs relating to the Thin Film programme) increased by 17% to £19.2 million in 2014
Strong balance sheet maintained with net cash of £47.0 million
Full year dividend up 12.5% reflecting the introduction of a sustainable and progressive dividend policy in June 2014
To protect Xaar's financial performance in 2015, cost cutting measures were swiftly implemented in the final quarter of 2014, with 160 roles removed (20% of global headcount) and a reduction in the Group's total annual cost base of £9 million
