Inkjet manufacturer Xaar has said that growth in the ceramic decoration sector, along with successful capacity expansion at its Huntingdon facility, contributed to a 26% increase in sales during 2011. The Cambridge-based business recorded a 33% increase in adjusted gross profit to ￡30.4m on sales of ￡68.7m for the 12 months to 31 December 2011. Turnover for 2011 comprised ￡61.4m of product sales, representative of 89%, while royalties made up 11% of turnover (￡7.2m).

According to Xaar, the ongoing ￡22m expansion of its Huntingdon facility has enabled the manufacturer to boost the output of its Platform 3 (P3) printhead technology. Its P3 offering has experienced growth within the ceramic tile decoration and label printing markets, with further digitalisation in the ceramic arena anticipated in the next five years. P3 uptake in Europe, the Middle-East and Africa, particularly within ceramics, ensured that it remained Xaar's largest sales region, contributing revenues of ￡42m, a marked 69% hike of ￡24.9m in 2010.

Asia generated 28% of total sales, equivalent to ￡19.3m, for 2011 – a 13% dip on last year's figures. P3 sales were "modest" in Asia, but are expected to grow over the next few years as Xaar targets increased direct sales into China. Xaar's sales into the Americas remained stable on 2010, contributing ￡7.4m (11%) to the group's revenues. While P3 uptake within North America grew within the packaging sector, this was negated by a shrinking demand for the group's P1 technology in South America. As reported earlier this year, the manufacturer's sales support team in China have left the company over perceived "unfair treatment" of themselves and their customers.

Since the end of January, the company has maintained direct contact with its customers and UK sales staff have temporarily relocated to Hong Kong until a new support centre is established.

The manufacturer said that there will be some "transitional costs" incurred, though the financial impact of this change is expected to be immaterial.

Xaar chairman Phil Lawler said the group has delivered "an excellent set of financial results" in an uncertain macro-economic climate.

He added: "Our continuing success in the ceramic decoration market is driving the profitable development of our business, which is enabling additional resources to be applied to both the expansion of the current product portfolio and the development of technology for future products."