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(Sharecast News) - Industrial inkjet printheads supplier Xaar warned of "challenging" second-half trading conditions on Wednesday, with full-year revenues seen lower year-on-year.
Xaar said annual adjusted pre-tax profits will be between £2.5m and £3.0m, ahead of current board expectations, but annual revenues were expected to come in between £70.0m and £72.0m - short of last year's figure of £72.8m.
The London-listed group also anticipates that weaker demand will persist in the final quarter of 2023 and spill over into 2024 as trading conditions remain "more challenging" in H2 due to the wider economic environment.
"The board anticipates that weaker demand during Q4 2023 will continue into 2024, and together with delays in some customer product launches, will result in lower revenue and adjusted profit in 2024 than previously anticipated," said Xaar.
"The board remains confident in the medium-term outlook as our opportunities continue to strengthen and further product launches are expected in 2024. This provides confidence in delivering our mid-term growth plans, whilst ensuring a balance between targeted investment and expected returns in the short term."
As of 0900 GMT, Xaar shares had sunk 20.34% at 140.60p.
Reporting by Iain Gilbert at Sharecast.com
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