Financial highlights
Revenue of £47.8 million in H1 2015; reduced from H1 2014 (£60.4 million) and is broadly consistent with H2 2014 (£48.8 million) following the step-down in sales into ceramic tiles in 2014
Improved profitability compared to H2 2014 following the cost reduction programme completed in 2014; gross margin of 45% (H2 2014: 41%) and adjusted operating margin of 19% (H2 2014: 17%)
Strong balance sheet maintained with net cash of £58.6 million (H2 2014: £47.0 million)
Cash generation of £11.6 million in H1 2015 included the impact of a £5 million reduction in inventory
Interim dividend up 5% to 3.15 pence per share (2014: 3 pence per share)
Operational highlights
The Xaar 1002 continues to lead the market in both established and developing digital printing applications
In ceramic tile decoration, the Xaar 1002 GS12 & GS40 variants are proving to be very versatile for a wide range of design finishes
Direct-to-shape printing in packaging continues to gain traction; branded commercial products are retailing in Europe and the US
Sales into labels grew in H1 2015 following the solution improvements made by OEM partners in 2014
Thin Film programme remains on track; product prototypes scheduled for the end of the year with significant on-going interest from potential OEM partners
Doug Edwards, CEO, commented:
"After a challenging 2014 our business achieved stability in the first half of 2015, with sales into all segments performing in line with expectations. For the remainder of 2015 we anticipate continued stability with the intention to return to growth in 2016. Our longer term ambitions remain much more significant, reflecting the digital inkjet market opportunity and our technology leadership position."
