XAAR PLC Key topics
Overview
Financial performance
Update on market sectors
Summary and outlook
Q&A
John Mills
Ian Tichias
CEO
CFO
Financial performance in line with market expectations
2023 Full Year Results Presentation Xaar Confidential
Good financial performance given the macro-economic environment
£M 2023 2022 Var | % Var |
Revenue 70.6 72.8 (2.2) | -3% |
Gross Margin 38% 39% | -2% |
aOpex (25.7) (25.6) (0.1) | +4% |
aEBITDA 6.4 6.2 0.2 | +3% |
aPBT 2.9 2.8 0.1 | +4% |
Figures (£m) and percentage (%) are subject to rounding
15.0 | |||||
£M | 2023 | 2022 | Var | % Var | 10.0 |
Trade WC | 33.5 | 30.1 | 3.4 | +11% | 5.0 |
Cash | 7.1 | 8.5 | (1.4) | -16% | |
0.0 | |||||
Net Assets | 71.8 | 71.8 | - | +0% |
Figures (£m) and percentage (%) are subject to rounding
Adjusted profit of £2.9m in line with our expectations
40.0
£m
35.0
30.0
25.0
20.0
H1 2023
H1 2021 | H1 2022 | H2 2022 |
Americas | Printhead | EPS |
H2 2021
Asia
Successfully managed input cost increases and factory shutdown
Revenue by Region and BU
H2 2023
EMEA
FFEIMegnajet
Strong balance sheet and financial position
Printhead business builds stronger relationships
Printhead Revenue & Sector
25.0
20.0
15.0
£m
10.0
5.0
0.0
H1 2021
H2 2021
H1 2022
H2 2022
H1 2023 H2 2023
Figures (£m) and percentage (%) are subject to rounding
Ceramics & glass
C&M & DTS
WFG & labels
3D printing & AVM
Packaging & textiles
Royalties, commissions & fees
Underlying revenue down due to challenging macro- economic environment
Customer base increased and market share retained
12 OEM launches in 2023 delivering revenue to offset underlying decline
Printhead | ||||
£M | 2023 | 2022 | Var | % Var |
Revenue | 37.1 | 39.0 | (1.9) | -5% |
Gross Margin | 42% | 43% | -2% | |
aOpex | (18.1) | (17.2) | (0.9) | +5% |
aEBITDA | - | 2.0 | (2.0) | -100% |
aPBT | (2.9) | (0.8) | (2.1) | +263% |
EPS business unit continues to grow
EPS | ||||
£M | 2023 | 2022 | Var | % Var |
Revenue | 22.1 | 19.6 | 2.5 | +13% |
Gross Margin | 38% | 40% | -5% | |
aOpex | (5.3) | (5.0) | (0.3) | +6% |
aEBITDA | 3.5 | 3.1 | 0.4 | +13% |
aPBT | 3.2 | 2.8 | 0.4 | +14% |
Figures (£m) and percentage (%) are subject to rounding
EPS Revenue by Technology
12
£m
10
8
6
4
2
0
H1 2021
H2 2021
H1 2022
Digital InkjetH2 2022
Pad PrintingH1 2023
H2 2023
Other
Revenue up 13% vs 2022 driven by growth in digital machine sales
Gross Margin of 38% maintainedRevenue growth with a focus on the sporting goods and power tools sectors
FFEI and Megnajet good contributors to profit
Good financial performance across both business units
Profit on sale of non-core IP assets
Figures (£m) and percentage (%) are subject to rounding
Businesses delivering on strategy of more vertically integrated product offeringMegnajet customer base expanded with greater range of customers
Figures (£m) and percentage (%) are subject to rounding. H1 2022 represents four months of trading.
FFEI | ||||
£M | 2023 | 2022 | Var | % Var |
Revenue | 8.7 | 11.6 | (2.9) | -25% |
Gross Margin | 25% | 30% | -17% | |
aOpex | (2.3) | (3.2) | 0.9 | -28% |
aEBITDA | 2.2 | 0.5 | 1.7 | +340% |
aPBT | 1.8 | 0.2 | 1.6 | +800% |
Megnajet | ||||
£M | 2023 | 2022 | Var | % Var |
Revenue | 2.7 | 2.6 | 0.2 | +4% |
Gross Margin | 29% | 33% | -12% | |
aOpex | (0.1) | (0.2) | 0.1 | -50% |
aEBITDA | 0.7 | 0.6 | 0.1 | +17% |
aPBT | 0.8 | 0.6 | 0.2 | +33% |
Ongoing operational improvements to drive efficiencies
Operational improvements have enabled us to drive efficiencies and performance across the business to help mitigate input cost inflation - Increases mitigated from 67% to 20% due to proactive measures
Business right-sized at the end of 2023 which positions us well for growth once economic conditions improveEstablished Project Hubble to provide focus in 4 key areas with no incremental investment
Project aims to deliver annual cost savings of £2m, of which £1.2m already implemented
10
Healthy cash position for current operations
− Healthy Balance Sheet and net cash of £7.1m
− Net Cash outflow of £1.4m
− Inventory increased by £2.1m due to unexpected reduced demand in our core markets, particularly ceramics, largely offset by tight cash management and £2m sale of IP assets
− Disciplined cash management
− Positive cash generation driven in FY24 by reduction in inventory
− Revolving credit facility in place with bank further demonstrating the strength of business case
2023 Full Year Results Presentation Xaar Confidential
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Xaar plc published this content on 26 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 March 2024 12:15:11 UTC.
