Xaar plc
Annual Report and
Financial Statements 2021
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Our vision
A world where you can print anything you can imagine.
Driven by our mission
We help companies and industries be more colourful, creative and productive through our world-class technology and printheads.
Building for the future
Our customers seek to work with partners who can help them get their products to market efficiently and effectively and who can support them throughout the product lifetime.
Read moreNew opportunities
During the course of 2021 we have seen a broadening of the range of applications using Xaar technology and a number of our OEMs launched new machines based on Xaar technology.
Read moreBusiness responsibility
Our three main areas of focus during 2021 have been: sustainability, employee engagement and charity support.
Read more
Chairman’s introduction
Leading the way with our strong partnerships
Our focus on customers and a product roadmap that reflects current and potential customer needs has increased the quality and responsiveness of the business, and means we are well placed for further performance improvement.
Chairman
Strategy update
Enhancing
our integrated product offering
We have made strategic acquisitions to the Group that enable us to strengthen our customer offering and we will continue to adopt this approach in the future as we look to continue increasing our capability and become a fully integrated inkjet product provider.
Chief Executive Officer
Chief Financial Officer
Financial highlights
- Revenue – Continuing operations
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In line with management expectations (2020: £48.0 million)
£59.3m
- Gross margin – Continuing operations
-
Increased from 27% in 2020, benefiting from operational leverage in the business
34%
- Gross R&D spend
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By continuing operations of £5.7 million, up £1.2 million on 2020 with investment focused on the ImagineX platform and product roadmap
£5.7m
- Net cash outflow
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Net cash outflow from continuing operations before Xaar 3D disposal proceeds (2020: £7.1 million inflow)
(£2.3m)
- Cash inflow on Xaar 3D disposal
-
Initial cash consideration received, with a further £10.9 million contingent consideration
£9.3m
- Net cash
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Strong closing balance sheet with net cash and treasury deposits (2020: £18.1 million excluding Xaar 3D)
£25.1m
Our business model
Xaar’s business is focused on inkjet technology, which together with our partners and customers, we have been transforming for over 30 years.
Xaar plc is structured into business units: Xaar Printhead, the largest BU, focuses on printhead technology; our other two business units concentrate on product print systems and digital imaging.
- Xaar designs
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We have R&D facilities in Cambridge, Hemel Hempstead, Stockholm, and Vermont.
We invest a substantial proportion of our revenue in R&D to remain a world leader in inkjet technology (2021: approximately 10%). - Xaar manufactures
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Xaar manufactures its printheads in Huntingdon, UK. Xaar’s manufacturing is capital intensive. EPS, our product printing business, manufactures customised and bespoke printing solutions in Vermont, USA. FFEI, our digital imaging business, manufactures imaging solutions in Hertfordshire, UK. Megnajet manufactures ink management and supply systems in Northamptonshire, UK.
- Xaar markets
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Xaar offers a wide range of industrial inkjet printheads, print engines, print systems and ink supply systems which are designed and produced to meet the customer-driven requirements for a range of manufacturing applications.
- Xaar sells
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Xaar’s printhead business sells direct to OEMs and UDIs around the world through its global sales team. Xaar company EPS also sells product printing equipment, services and consumables. The majority of sales are to US customers. FFEI sells via three routes to market: as a full system to one OEM, as a ready to integrate print engine via distribution, and as a Xaar branded print engine for our UDI customers. Megnajet sells its products directly to customers and via Xaar.
we are ready for the future
Our business units
Xaar plc has a number of business units within the Group, with the principal focus being on inkjet technology.
Read moreRevenue segment
£40.1m
| Industrial | 53% |
| Packaging | 30% |
| Graphic Arts | 15% |
| Royalty | 2% |
Revenue segment
£13.9m
| Digital | 58% |
| Analogue | 39% |
| Other | 3% |
In March 2022 we acquired Megnajet, market leader in the design and manufacture of industrial ink management and supply systems for digital inkjet. The acquisition is part of our strategy to offer our customers a more integrated inkjet solution.
Revenue segment
£5.3m
| Inkjet | 60% |
| Life Sciences | 40% |
Sustainable and
responsible business
Working in responsible ways
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Our ESG Roadmap – founded on four pillars
Environment
Leading the way in environmental sustainability for the industrial inkjet technology sector.
People
An employer of choice by putting our people, their potential and wellbeing at the heart of all we do.
Innovation
Encouraging more sustainable approaches to design, manufacture, technology and collaboration across the whole product lifecycle.
Community
Actively engaging with our communities to provide practical, effective, lasting support that benefits society.
Our EPIICC values
Our values are the driving force of our culture and are at the heart of everything that we do.
We have a cross functional team that has been working on ways to further embed our values throughout the Company, and we have also rolled the values out across all the Group. The team put together a video which demonstrates the part that our values play in our lives, both at work and in our home lives.
Key performance indicators
Our progress in numbers
We monitor progress against the delivery of our strategic goals using financial key performance indicators (‘KPIs’).
Read moreStrategic Report
Governance
Financial Statements