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Xaar - Collecting cash as it mulls P4 opportunity

October 2013

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:
  • 796.5p
Based on unrelenting demand for ceramic tile printing equipment in China, a formidable set of interims were always expected. Excluding £3m of revenue relating to under-reported royalties in previous years (cash finally received in August), H1 printhead sales were up 87% to £63.9m whilst adjusted pretax profit and eps both grew by 235% to £22.3m and 23.5p, respectively. The industrial division - principally this ceramic business - represented 71% of sales so our first vexed question to chief executive Ian Dinwoodie was whether there was any chance of a let up in demand from Chinese ceramic manufacturers. Dinwoodie says not really; just 40% of the 6,000 lines in China will have been converted by the end of this year, with an expe ...

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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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