World leading semiconductor and software technology company DisplayLink has effected one of the most remarkable turnarounds in Cambridge corporate history with a $305 million cash sale to US company Synaptics.

As DisplayLink has $102m net cash the full value of the deal is nearer $407m. 

The deal is expected to close in Synaptics’ first quarter of fiscal year 2021. Synaptics expects the transaction to add approximately $94m in annualised sales and be immediately accretive to non-GAAP gross margins, non-GAAP operating margins and non-GAAP earnings post-close. 

DisplayLink will continue to operate in Cambridge where it recently scaled to a new UK headquarters at the Science Park but inspirational CEO Graham O’Keeffe intends to bow out to pursue a fresh challenge.

DisplayLink has transformed itself from the brink of penury in its formative years to a globally influential technology innovator with a holding company incorporated in Washington State, a mothership in Palo Alto and key operations in the UK, Europe and Asia – including Taiwan and Japan. The company, which has 300 staff, has twice won Business Weekly Awards. 

The business was founded in 2003 as Newnham Research, changing its name to DisplayLink in 2006.

At one stage it faced a near death experience and radical management changes were effected: DisplayLink has had six CEOs and five CFOs in its 17 year history.

O’Keeffe and CFO John Lee first steadied the ship, then steered it off the rocks and turned it from a holed vessel into the corporate equivalent of a super yacht.

Over time the company has received $80 million in four rounds of venture capital financing from Atlas Venture, Balderton Capital, Draper Esprit, DAG Ventures and Cipio Partners.

Its annual accounts filed at Companies House to December 2019 showed sales of $93.664m and profits of $30.835m with over $102m net cash. It claimed last year to have shipped over 35 million chips.

DisplayLink’s technology has enabled many of the home working and video conferencing solutions that we have come to rely on to remain productive during the coronavirus lockdown. 

Companies such as Dell, HP, Lenovo and Logitech use DisplayLink’s silicon devices in their docking station and video conferencing product ranges.

DisplayLink’s is an incredible turnaround story for a company that was, according to inside sources, ‘running on fumes’ just nine years ago.  

Struggling to raise money during the last economic downturn, and with a large overdraft, O’Keeffe stepped in as executive chairman, recruiting as CFO John Lee whose previous experience included stints at Sinclair Research, Velocix and CamSemi. 

O’Keeffe was already an experienced semiconductor investor, having backed Element 14, Icera, Picochip, Ubiquisys and Phyworks, all of which ended up being acquired by much larger US companies for well over $1 billion in total. Focusing on a core business of designing chips that helped giant PC vendors connect laptops to multiple screens via a single USB cable, DisplayLink created a unique brand akin to ‘Intel Inside’ that IT managers trusted to “just work.” 

DisplayLink has also sold its chips to HTC for their wireless virtual reality headset where low latency and high quality video is essential to prevent motion sickness.  

The announcement that San Jose-based Synaptics has bought DisplayLink should come as no surprise. M & A activity in the technology world remains in rude health despite the coronavirus pandemic preventing the face to face meetings that would otherwise be de rigueur in a complex international transaction such as this.  

DisplayLink’s backers must have done well out of the deal, having injected $80 million over the years and we understand the company also had a policy for all employees to have share options.

Michael Hurlston, President and CEO of Synaptics, said: “Several market trends such as work from home, bring your own device and office hotelling coupled with the growing need for multiple, high resolution displays in enterprises are driving demand for universal docking and casting solutions. 

“DisplayLink’s track record of success and strong market validation coupled with Synaptics’ leadership in commercial docking solutions positions us well to capitalise on these trends and deliver compelling solutions to our combined customer base.” 

O’Keeffe said: “Synaptics is a recognised leader in video interface solutions and this combination creates an exciting opportunity for DisplayLink to bring greater value to our customers. 

“Our video compression technology is the perfect complement to Synaptics’ current product portfolio, and the combination of our world-class engineering teams will be able to address both existing opportunities and exciting new use cases.”

Cambridge Big Biotech AstraZeneca is upbeat about the latest feedback from trials of the new Oxford University vaccine designed to wipe out COVID-19.

Interim results from the ongoing Phase I/II COV001 trial, led by the university, showed AZD1222 was tolerated and generated robust immune responses against the SARS-CoV-2 virus in all evaluated participants.

COV001 is a blinded, multi-centre, randomised controlled Phase I/II trial with 1,077 healthy adult participants, aged 18-55 years. 

It assessed a single dose of AZD1222 against a comparator meningococcal conjugate vaccine, MenACWY. Ten participants also received two doses of AZD1222 one month apart.

The results published in The Lancet confirmed a single dose of AZD1222 resulted in a four-fold increase in antibodies to the SARS-CoV-2 virus spike protein in 95 per cent of participants one month after injection.

In all participants, a T-cell response was induced, peaking by day 14 and maintained two months after injection.

Neutralising activity against SARS-CoV-2 (as assessed by the MNA80 assay) was seen in 91 per cent of participants one month after vaccination and in 100 per cent of participants who received a second dose. 

The levels of neutralising antibodies seen in participants receiving either one or two doses were in a similar range to those seen in convalescent COVID-19 patients. Strong correlations were observed across neutralisation assays.

The early safety responses confirmed that transient local and systemic reactions were common in the AZD1222 group and were comparable to previous trials and other adenoviral vector vaccines.

They included temporary injection site pain and tenderness, mild-to-moderate headache, fatigue, chills, feverishness, malaise and muscle ache. No serious adverse events were reported with AZD1222, and reactions were lessened with the use of prophylactic paracetamol, a pain killer and occurred less frequently after a second dose.

Professor Andrew Pollard, chief investigator of the trial at Oxford University, said: “The interim Phase I/II data for our coronavirus vaccine shows that the vaccine did not lead to any unexpected reactions and had a similar safety profile to previous vaccines of this type.

“The immune responses observed following vaccination are in line with what we expect will be associated with protection against the SARS-CoV-2 virus, although we must continue with our rigorous clinical trial programme to confirm this. 

“We saw the strongest immune response in participants who received two doses of the vaccine, indicating that this might be a good strategy for vaccination.”

Mene Pangalos, executive VP, BioPharmaceuticals R & D at AstraZeneca added: “We are encouraged by the Phase I/II interim data showing AZD1222 was capable of generating a rapid antibody and T-cell response against SARS-CoV-2. 

“While there is more work to be done, today’s data increases our confidence that the vaccine will work and allows us to continue our plans to manufacture the vaccine at scale for broad and equitable access around the world.”

Late-stage Phase II/III trials are currently underway in the UK, Brazil and South Africa and are due to start in the US. The trials will determine how well the vaccine will protect from the COVID-19 disease and measure safety and immune responses in different age ranges and at various doses.

In parallel, AstraZeneca continues to fulfil its commitment for broad and equitable access to the vaccine, should late-stage clinical trials prove successful. 

So far, commitments to supply more than two billion doses of the vaccine have been agreed with the UK, US, Europe’s Inclusive Vaccines Alliance, the Coalition for Epidemic Preparedness, Gavi the Vaccine Alliance and Serum Institute of India.

Sosei Group Corporation, which has major research facilities in Cambridge, has raised $200 million global growth capital through an international offering.

The majority of funds will be used to pursue strategic expansion including a potentially transformative acquisition to secure long-term revenue growth. The business will also make significant investments in novel technologies that complement and future-proof its drug discovery platform.

It intends to expand its drug candidate discovery and early development into new target classes and will also be in-licensing late-stage clinical assets to develop for the Japanese market.

Any balance of funds will be used to support organic growth initiatives, such as investments in current research activities and general corporate purposes.

Shinichi Tamura, President and CEO of Sosei Heptares, said: “I am pleased that we have successfully completed this international offering led by our finance team and I would like to thank all of the investors who subscribed for their support. 

“The $200m we have raised will allow us to pursue our growth strategy, which includes potential transformative acquisitions, more aggressively. 

“We have an excellent track record of making transformational acquisitions: the purchases of both Heptares Therapeutics and Arakis have played a key role in shaping our current business and delivering significant value to our shareholders. 

“With this enhanced level of financial resources, I am looking to the future with great confidence and look forward to updating you as we execute our growth strategy.” 

Chris Cargill, EVP and CFO of Sosei Heptares, added: “This international offering to new and existing shareholders was highly successful, given the uncertain global economic outlook, and has secured the long-term growth capital we require to execute our corporate ambition.

“This significantly improved level of financial flexibility enhances our strategic options. We can now look at exciting ways to accelerate Sosei Heptares’ long-term revenue growth, including a potentially transformative acquisition, as well as investments that enhance our own world-leading capabilities to generate novel drug candidates targeting serious diseases.”

Cambridge’s greatest ever technology business – superchip architect Arm – may be put up for sale by Japanese owner SoftBank just four years after it paid $32 billion to acquire the company.

Goldman Sachs has been tasked with exploring the alternatives but only two options would appear to be viable in SoftBank’s dash for cash – a total sale of the Cambridge company or a partial sale wrapped round an IPO.

SoftBank took Arm off the UK stock market after the original acquisition. Arm officials are referring all Press enquiries to SoftBank.

In global markets crippled by COVID-driven paranoia it may be that SoftBank comes to its senses and realises that keeping Arm represents its best hope of building a financial revival.

But the next move could be all down to desperation: In May, an earnings report outlined SoftBank losses that were the largest on record for any listed Japanese company.

As the New York Times also reported, SoftBank posted an operating loss of 1.36 trillion yen, or $12.7 billion, in the year to March 31, its first annual loss in 15 years. It reported a profit of $19.6 billion the previous year. Its net income loss was $894 million.

SoftBank had already announced a major restructuring,. As part of that process, ARM is set to to transfer two of its Internet of Things (IoT) businesses to SoftBank, subject to board approval. SoftBank would then directly oversee those divisions. 

Arm told Business Weekly that the move was strategic and designed to promote improved growth and profitability.

A spokesperson added: “If the proposed transfer is completed we will deepen our focus on our core semiconductor IP business and accelerate the returns on our investments in client, infrastructure, automotive and embedded/IoT devices. We are not sharing any additional details or commenting on future plans at this time.”

Business Weekly has recently reported a number of new technologies developed within these core categories which will be directed from Arm’s massively expanded Cambridge headquarters. Arm’s IP across these segments is huge and global and it has leading international players leveraging the enhanced technology.

Arm was sold to SoftBank for $32 billion in September 2016 and CEO Simon Segars believes the newly announced strategic pivot will significantly enhance the bottom line.

He said: “Softbank’s experience in managing fast-growing, early-stage businesses would enable the IoT Services Group to maximise its value in capturing the data opportunity.

“ARM would be in a stronger position to innovate in our core IP roadmap and provide our partners with greater support to capture the expanding opportunities for compute solutions across a range of markets.”

ARM expects to complete the switch before the end of September and I understand it intends to continue collaborating with the divisions moving to SoftBank control after the handover.

To date, Arm partners have shipped more than 160 billion Arm-based chips, and an average of more than 22 billion over the past three years. The great irony of the current situation is that SoftBank acquired Arm to build on its leadership in all things IoT. That capability has never been lost  – then companies in financial straits seldom plan logically or strategically.

Mobile payments technology business Bango saw its stock rise significantly when the UK market opened today after flagging up record revenue growth –  ahead of expectations – for the first half of 2020. 

And there’s more: the Cambridge company now expects end user spend to hit £2 billion for the full year.

Bango reported revenue growth of more than 50 per cent to £4.8 million; cash on June 30 was £4.2m. 

End User Spend (EUS) grew strongly to more than £740m. This continues the exponential growth trend in EUS through the Bango Platform and, as the full benefits of the customer wins and route activations (for example Softbank and Amazon.co.jp) won during the first half are seen, the company expects to see a strong second half to meet full-year forecasts.

Bango says it continues to invest in growing its data insights and monetisation capabilities and now offers payment audiences in seven out of the top 10 countries, measured by app store revenue. 

More than 1,000 app developers are now registered and engaged with Bango Marketplace, compared to around 200 at the end of 2019. Two new partnerships have been signed with leading games publishers who have started using Bango Audiences across their full range of titles. 
 
During the first half, Bango signed a three-year platform deal with a leading global telecoms provider, worth at least £1.5m, with opportunities for further revenue growth.

It also announced the launch of a payment option for SoftBank customers in Amazon.co.jp.  Bango now powers carrier billing for Amazon.co.jp across Japan’s three largest operators: SoftBank, NTT Docomo and KDDI, reaching over 100 million consumers.

CEO Paul Larbey said: “Bango enters the second half of 2020 in a stronger position than ever before. The achievements in the first six months during a period of unprecedented global uncertainty are a testament to the strength of the Bango team and the success of Bango customers.

“The payments and resale business continues to grow rapidly, increasing profitability and cash generation, thanks to the stable operating costs of the platform. 

“The opportunities for this business are greater than ever, having expanded beyond telco providers to retailers now joining the Bango circle, where data insights help them thrive.

“Bango Marketplace offers a powerful and proven proposition with strong sales momentum. Bango Audiences help the world’s largest games companies to acquire new paying users, which in turn generates more payment insights, and the Bango virtuous circle grows.

“With all this exciting progress, Bango is firmly on track to become the technology behind every payment choice.” 

Bango will report its interim results on September 15.

University of Cambridge spin-out Spirea Limited, is targeting a potential $7.5 billion market for the treatment of multiple cancers after raising crucial seed funding.

Meltwind and Start Codon have led the unspecified seed round for Spirea, which was founded to deliver the next generation of antibody drug conjugate  cancer therapeutics. 

The cash will progress the development of its ADC technology, which allows the delivery of more drug payload to tumour cells resulting in greater efficacy, tolerability and the ability to treat more cancer patients.

ADC drugs combine the cell killing activity of a cytotoxic drug payload with the targeting ability of an antibody. Despite strong interest in the field from pharmaceutical companies, only eight ADCs have successfully reached the market with many programmes stalled due to constraints with the format, toxic side-effects and limitations in the range of cancer patients who can be treated.

Spirea’s novel technology overcomes these issues by offering high drug-to-antibody ratios (DAR), drug stability and design flexibility which enable the development of differentiated ADCs with improved efficacy and safety. 

Because the technology allows more drug to be loaded onto the targeting antibody whilst maintaining drug stability, payloads can also be customised to the target, enabling flexibility in payload potencies, creative drug combinations and novel modes of action to serve a wider patient group. 

Recent in vitro proof-of-concept studies have demonstrated successful ADC manufacturing with an impressive DAR, no aggregation, good serum stability and high cell-killing activity on HER2 breast cancer cells.

Dr Myriam Ouberai, CEO of Spirea, said: “Incorporation of our technology into ADC products will accelerate and energise the important transition away from the ‘one size fits all’ approach currently being pursued in ADC development, resulting in novel products with a competitive and differentiated profile.

“The platform has the power to unlock the development of a new generation of powerful and well-tolerated drugs, which have been so far inaccessible to many cancer patients. 

“We are delighted to have attracted seed funding from Meltwind and Start Codon, and to be part of the first Start Codon incubator programme. This investment and support serve as endorsements of our approach and will allow us to optimise and validate our technology.”

Dr Jonathan Milner, executive director at Meltwind, said: “The market for ADCs is anticipated to reach $7.5 billion by 2025. Spirea’s transformative approach to addressing the common obstacles faced in ADC development has the potential to disrupt this field entirely, placing the company in a unique position to address a very significant market opportunity. This is an exciting time for Spirea and we are pleased to be supporting them.” 

Dr Jason Mellad, co-founder and CEO at Start Codon, added: “We are very excited to be working closely with Spirea to support their start-up journey. The company has already demonstrated promising in vitro results and we look forward to seeing the technology develop further.”

Spirea has previously received investment from Innovate UK, IP Group and Cambridge Enterprise and is supported by a number of successful, high-profile board members from the life sciences including Jane Dancer (former chief business officer at F-star), Gaynor Fryers (former vice-president of business development at AstraZeneca) and Christine Martin (head of life science investment at Cambridge Enterprise). 

Spirea benefits from being part of the healthcare business accelerator Start Codon and the Cambridge Judge Entrepreneurship Centre’s Accelerator, Accelerate Cambridge.

Mark Glatman’s Abstract Securities reveals that its wholly owned subsidiary – Abstract (Cambridge) Limited – has exchanged contracts to acquire a 9.17 acre site at Fulbourn Road in Cambridge, with University of Cambridge College, Peterhouse, from the Wright’s Clock Land Charity. 

Abstract proposes to speculatively build around 300,000 sq ft of offices with car parking, subject to detailed discussions with the local planning authority.

The value of the completed envisaged development will be in the order of £200 million Abstract tells Business Weekly.

Following on from several successful speculative office schemes across the UK over the last seven years, this project represents a major investment by Abstract in the Cambridge office market where supply constraints, coupled with demand – especially from life sciences, biotechnology and other more traditional office users – remains high.

Abstract has been granted a long leasehold interest by Peterhouse which will retain the freehold ownership of the land.

The site, currently comprising open farmland zoned for business use, is adjacent to Peterhouse Technology Park, also owned by Peterhouse, which is the location of the global headquarters of superchip architect Arm plc. The land lies south east of the city centre, around 2.5 miles from the railway station and gives easy access to the M11 and A14.

Abstract has retained Scott Brownrigg to design its proposals for the site which will provide a range of grade A office buildings capable of being occupied by a variety of users for multi or single occupation, but particularly focused on the technology, science and knowledge based sectors.

As with all Abstract schemes, a highly sustainable and environment focused approach will be adopted, while providing flexible space suitable for a range of end user needs, particularly important given the diverse range of target occupiers in the Cambridge market.

Mark Glatman, chief executive of Abstract Securities, says: “We are really excited to be developing in Cambridge. This is a location which we have followed closely for many years and, against a backdrop of so much uncertainty in the world today, we have no hesitation in committing to speculatively build here at the current time. 

“Our blend of occupier focused skills, and tried and tested delivery platform, means that we can quickly deliver first class space into a unique market and befitting its highly skilled workforce. We believe Cambridge will be a key engine room to growth as our economy recovers over the coming years.

“We are delighted to have worked on the purchase with Peterhouse, the oldest College in Cambridge, founded in 1284, and we will be maintaining a close relationship throughout the development process in order to realise our aligned ambitions for the land.”

Bidwells represented Abstract and Peterhouse in the acquisition. Cheffins represented the vendor. Abstract was advised by Pinsent Masons and Peterhouse by leading law firm Mills & Reeve.

For information about the proposed development you can email mark.glatman [at] abstractsecurities.com (Mark Glatman) or christopher.mcpherson [at] abstractsecurities.com (Christopher McPherson) .

Established in April 2000 by Mark Glatman, the Abstract Group of Companies specialises in commercial property development and venture capital financing. 

The management team at Abstract is highly experienced at working directly with major property owners and corporate end users and has developed in excess of 1.2 million sq ft of new office buildings across the UK in the last seven years, providing new offices for companies including Babcock plc, KPMG, Aker Solutions, Pension Protection Fund, Zurich UK and Wood plc, amongst others.

It’s clear that we’re in for a long and bumpy ride and a very gradual transition to ‘normal’, writes Tom Gallop, Corporate Finance partner at Ashcroft Partnership LLP.  

Many businesses face an uncertain future and some will not survive, but those that went into the crisis with a strong balance sheet and an effective management team should emerge, albeit weaker and perhaps in need of capital and a fresh strategy.  

What does this mean for the M & A market? Many business owners will be reluctant to abandon the valuations they might have enjoyed before the pandemic, so for those vendors for whom maximising value is the objective and timing is not critical, thoughts of a complete exit will have been delayed. 

Those other sellers of businesses, PE firms, who are sitting on assets they might have been expecting to sell shortly, will also be delaying processes. 

Trade buyers are likely to focus on rebuilding their own balance sheets and rethinking strategy, whilst a few will be eyeing distressed assets. 

The banks will be reluctant to lend to new customers whilst they grapple with their new COVID-19 related loan books and work with existing borrowers to avoid default. 

Scrutiny during underwriting is likely to increase dramatically and a whole new range of scenarios (global disruption to supply chains, for example) could be modelled during due diligence.

Despite this, we are not in for a repeat of 2008 when the deal-making tap was turned off. In 2008, one of the chief characteristics of the post-2008 period was a lack of liquidity. The banks could not lend and many PE firms were hamstrung, having invested heavily in leveraged buy outs. In short, there was no money.

In 2020, by contrast, there has never been so much ‘dry powder’ waiting to be deployed and private equity firms are ready to step in. Mid-market private equity firms such as LDC and August have funds raised and ready to be deployed, whilst Foresight’s recently launched East of England Fund boasts a £100 million pool of patient capital set up to assist companies in the East of England.

As Matt Mcloughlin, senior investment manager at Foresight, explains: “Recent months have presented a great challenge for businesses in the region, across all sizes and market sectors. We have an important role to play as investors, partnering with entrepreneurs to secure their businesses, achieve their growth potential, and maximise opportunities through uncertain market conditions. 

“Now more than ever, it is crucial that high growth SMEs are connected with the capital and support they need. We are actively seeking opportunities to discuss investment with interested shareholders and management teams.”

Having spent the last couple of months supporting their portfolio businesses and reworking business plans, PE firms are now looking at buying and investment opportunities. 

The race is on to find quality assets in resilient sectors such as technology, business services and software.  

In addition to providing capital to rebuild balance sheets, private equity firms will be keen to provide an element of cash out to vendors who might be seeking to de-risk after recent traumatic events.

They are also looking to support buyouts of non-core divisions from larger organisations. Valuations should hold up well where private equity is concerned, as they can afford to invest now and take the risk of short-term underperformance – it is the potential valuation in five years’ time that will interest them.

Mark Nunny of Business Growth Fund (BGF) agrees: “Equity investment has a key part to play in the recovery. Balance sheets will require strengthening, debt built up will require refinancing and companies will require growth capital to make the most of the opportunities that present themselves. 

“Having backed over 300 management teams to help them grow their businesses over the past nine years and with considerable capital to invest, BGF is well placed to work alongside management teams to grow their businesses and shareholder value.”

Various terms have been used to describe private equity firms over the years, some not entirely complimentary. But in the months and years to come they could prove to be knights in shining armour. 

By bringing much needed capital, long-term vision and operational expertise, they will be welcomed by many of the region’s entrepreneurs as they try to get things moving again.  

• For further information on how private equity could help your business, contact Tom Gallop, Corporate Finance Partner at Ashcroft, on 01763 209113.

Superchip architect Arm has declined to go into the potential impact on its Cambridge UK headquarters of a major restructuring by its Japanese parent company SoftBank.

ARM is set to to transfer two of its Internet of Things (IoT) businesses to SoftBank, subject to board approval. SoftBank would then directly oversee those divisions. 

Arm told Business Weekly that the move is strategic and designed to promote improved growth and profitability.

A spokesperson added: “If the proposed transfer is completed we will deepen our focus on our core semiconductor IP business and accelerate the returns on our investments in client, infrastructure, automotive and embedded/IoT devices.

“We are not sharing any additional details or commenting on future plans at this time.”

Business Weekly has recently reported a number of new technologies developed within these core categories which will be directed from Arm’s massively expanded Cambridge headquarters. Arm’s IP across these segments is huge and global and it has leading international players leveraging the enhanced technology.

Arm was sold to SoftBank for $32 billion in September 2016 and CEO Simon Segars believes the newly announced strategic pivot will significantly enhance the bottom line.

He said: “Softbank’s experience in managing fast-growing, early-stage businesses would enable the IoT Services Group to maximise its value in capturing the data opportunity.

“ARM would be in a stronger position to innovate in our core IP roadmap and provide our partners with greater support to capture the expanding opportunities for compute solutions across a range of markets.”

ARM expects to complete the switch before the end of September and I understand it intends to continue collaborating with the divisions moving to SoftBank control after the handover.

Arm smashed its own record for the number of chips circulated to customers worldwide in the fourth quarter of 2019. Arm silicon partners shipped a record 6.4 billion Arm-based chips, the third record quarter for unit shipments in the past two years.

Arm saw growing demand for embedded intelligence in endpoint devices as demonstrated by the record 4.2 billion Cortex-M processors shipped across the planet.

To date, Arm partners have shipped more than 160 billion Arm-based chips, and an average of more than 22 billion over the past three years.

Management at Cambridge inkjet innovator Xaar plc say they have sent champagne to all the team to mark the company’s 30th anniversary. But the harsh truth is that for shareholders the bubbly went flat years ago.

Xaar would be well advised not to ask stockholders where to stick the candles destined for the birthday cake.

At the time of writing, at close of the UK market on Monday night, the share price stood at 57.80p and the market cap was £45.23 million, hardly a bottom feeder taking in the broader scheme of things.

Then you look at the 52-week profile and see a high of 99p and a low of 18.70p. Then you review September 2019 and see that the stock nosedived 40 per cent after a poor set of results, news of a painful restructuring and notification that CEO Doug Edward was one of several executives standing down.

Oh – and there were likely to be as yet unspecified job losses from a related decision to review the Printhead business. First half revenue was down £12.8m to £22.5m year-on-year and the underlying loss was £7.6m.

We had reported at the end of June 2018 that Xaar had made an unspecified number of job cuts as part of a cost-slashing exercise in a bid to meet profit targets. 

That followed a fall in revenues in the Cambridge Science Park company’s ceramics business and poor visibility regarding a diversification strategy. Back in October 2014, Xaar cut a fifth of the workforce – around 160 jobs – after problems in China.

So the only way is up – right? Not necessarily. On April 23 this year – a calendar month after the coronavirus lockdown – Xaar reported a revenue fall and much-widened loss for 2019, but added it was yet to see a fall in customer demand due to the Covid-19 outbreak.

Revenue was 18 per cent lower in 2019 at £49.4m from £60.5m. Xaar’s pretax loss ballooned to £71.9 million from £15.1 million. The company decided against paying a dividend.

The naked truth is that at the last count, the stock had declined 89 per cent in three years. Pass the champagne flute – and keep on passing it down the line! A more sobering brew would appear to be required.

Business Weekly has championed Xaar since it was founded in the same year as ourselves – 1990 – by a team of four including Mike Willis and Mark Shepherd. 

The vision was to commercialise the work done at Cambridge Consultants by Steve Temple and David Paton, the inventors of Xaar’s piezoelectric Drop-on-Demand technology; both of whom also joined the company shortly after Xaar began life. 

The company signed its first commercial agreement in 1991 with Brother Industries who licensed the technology to develop home office printers and fax machines. 

By 1992 Xaar had reached a significant milestone, surpassing £1m in sales achieved from license fees, the sale of evaluation kits and technical consultancy. 

In 2013 after a fabulous previous 12 months in terms of generating cash and cracking global markets the company was named this newspaper’s Business of the Year. Its ability to innovate in the inkjet world is not and never has been in question. 

The company continues to have world-class technology at its fingertips. The fact is that it has been too accident prone – too often.

Xaar has spent the lockdown hunkering down and says it is well placed to execute a bounceback. Time will tell.

Recent innovations have included High Laydown Technology, which enables deposition of large quantities of fluid at high line speeds, and Ultra High Viscosity, which allows fluids with significantly higher viscosities – up to 100 centipoise at typical operating temperatures of around 40˚C to 50˚C – to be jetted. 

Such developments have increased the flexibility of the Xaar ceramics portfolio and opened growth in new cutting-edge sectors such as 3D Printing and Additive Manufacturing.  

John Mills, CEO of Xaar said: “30 years is a significant milestone for any business and we were all extremely keen to mark the occasion and celebrate our accomplishments as a team – despite many of us still working in separate locations. 

“It has been a real joy reviewing the many achievements from over the last 30 years and through this, acknowledging the unique heritage we have in the development and use of inkjet technology worldwide.

“We are proud to be a leader in inkjet technologies and very much look forward to achieving our next significant milestones.”

As someone who has championed Xaar for the best part of three decades, no-one would be more thrilled than I if the company emerges from the current pandemic as a stronger and more sustainable business. But shareholders are expecting action rather than words from here on in: now sustained success really would be the icing on the cake.