StockMarketWire.com - Inkjet printing technology company Xaar warned that it annual profits would take a £7m hit due to delays selling new products in China.

The sum, based on an increase inventory and debtors provision, would be booked in the company's results for the year through December 2018.

'The previously reported delays in ramp of new product volumes in China have resulted in an unfavourable working capital aging profile, and as a result provisions are being taken on the basis of prudency in line with standard accounting practice,' Xaar said.

'The integration issues experienced leading to the delays are now behind us and sell-through is expected to increase.'

'Furthermore, the minimum volume commitments from our supplier have now been met.'

Xaar said its underlying trading results were in line with previous expectations announced in December, excluding the provisions.

Revenue was expected to be £63.5m, while net net cash was expected at £27.9m.



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