Xaar PLC on Tuesday reported a swing to annual profit and higher revenue on sales volume growth and performance improvements.

The Cambridge, England- based inkjet printing technology company reported a pretax profit of £994,000 for 2021, swung from a loss of £4.3 million in 2020.

This was on revenue growth of 23% to £59.3 million from £48.0 million.

Xaar attributed the improvement in results to growth in sales volumes and the success of its programme to improve efficiency and the consistency of operational performance.

‘A specific area of focus has been our supply chain and our response to the challenges caused by the pandemic,’ Xaar said.

‘An early recognition of the potential constraints on supply and logistics enabled us to secure materials to meet expected production requirements, and to proactively adapt product designs to accommodate alternative components. These actions have increased business resilience and will help us maintain uninterrupted supply to customers during 2022.’

The company declared no dividend for 2021, unchanged from the year before. Xaar explained that it is trying to prioritise cash for continued investment in the business at this stage of its rebuilding programme. The company believes that this will enable it to deliver better returns for shareholders in the medium term.

Xaar noted that last year’s positive momentum has continued in the first quarter of 2022. Customer engagement and sales orders have been ‘maintained’ and the company is trading in line with its expectations.

Looking ahead, Xaar anticipates continued performance improvements during 2022 with further organic revenue growth.

Shares were down 0.5% at 241.80 pence each on Tuesday morning in London.

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