Xaar (LSE:XAR), the inkjet printing technology group, reported revenue from continuing operations of £29.7 million for the six months ended 30 June, up from £27.2 million a year earlier, a 9.2% increase at constant currency.
The group swung to an adjusted profit before tax of £0.2 million, compared with a £0.7 million loss in the same period last year.
Printhead revenue, the core of the business, rose 5.5% to £21.0 million, with new OEM adoption offsetting weaker demand in textiles and jewellery wax, the latter hit by higher global gold prices and Middle East disruption.
Net debt stood at £0.1 million at period end, against net cash of £5.1 million a year earlier, reflecting higher capital expenditure of £2.4 million and inventory build ahead of OEM launches.
Engineered Print Solutions revenue grew 15.9% to £7.3 million under new management, while Megnajet revenue rose 27.3% to £1.4 million.
"Strong pre-launch demand for the Flashforge CJ270, evidenced by the receipt of initial printhead orders and the continued build-up of volumes ahead of commercial launch, further validates our strategy to expand into high-value applications," said chief executive John Mills.
The Flashforge CJ270 desktop 3D printer is expected to launch in the second half, with pre-launch manufacturing already underway.
Xaar's Dongguan manufacturing facility is in the final stages of commissioning, a move the company said will strengthen supply chain resilience and support engagement with Asian OEMs.
No interim dividend has been declared, with the board prioritising investment in growth.
Mills said the group's full-year outlook remains unchanged.
News Intelligence what this means for the company
Xaar swung to adjusted profitability of £0.2m in H1 on 9.2% revenue growth, driven by printhead adoption and strong pre-launch demand for the Flashforge CJ270 3D printer. The shift from £5.1m net cash to £0.1m net debt reflects deliberate investment in manufacturing capacity and inventory ahead of OEM launches, signalling confidence in near-term commercialisation.
Return to profitability and double-digit growth in Engineered Print Solutions (15.9%) and Megnajet (27.3%) validate the diversification strategy, though printhead core growth of 5.5% remains modest and the company is now in net debt. The Flashforge CJ270 launch in H2 and Dongguan facility commissioning are near-term catalysts, but execution risk on new applications and OEM adoption remains.
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