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Xaar

December 2011

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • XAR
  • Price:
  • 243p
Xaar has announced that sales and profits in Q3 were ahead of expectations and it expects this trend to continue into Q4. In the light of the statement broker Xcap has lifted its sales, pretax profit and eps forecast to £67m, £9.8m and 10.3p, respectively.Xaar is halfway through its £22m capex spend and the present phase of expansion takes capacity to 25k P3 print heads, slightly ahead of expectation. The remaining expansion when complete within nine months should take capacity to 45k.  As a measure of the potential, broker Xcap notes that only 200 of the 12,000 ceramic production lines worldwide have been equipped with P3 print heads. Each machine uses 40 heads and heads last three years so assuming a 60% penetrati ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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