In an interim management statement (IMS) published this morning, the inkjet printhead manufacturer said that - based on unseasonably stong trading in the first quarter and the strength of its forecast for the rest of 2013 - it was increasing its expectations for the year.

Sales in the first three months of 2013 were said to have "grown significantly" year-on-year as well as versus the last quarter of 2012. This was said to be in contrast with historic seasonal sales patterns, as the first quarter is usually adversely affected by the Chinese New Year.

The Cambridge-based manufacturer said that product gross margins had improved as a result of the higher sales level and were ahead of those achieved in the second half of 2012. Revenue growth came primarily from the industrial and packaging markets, supported by "modest growth" in the graphic arts market.

Operating margins also benefited from the growth in sales although the board warned that these were expected to soften later in the year due to the impact of planned manufacturing capacity investment and increased R&D spend.

Net cash at 31 March 2013 was £41.7m, versus £28.9m at 31 December 2012, although this was partly due to the phasing of this year's capex towards the second half of the year and a reduction in net working capital.

The IMS concluded that the board was "confident that strong growth in revenue and profit will be achieved in 2013 versus 2012" - when the company achieved record results - adding that it was increasing its expectations for the year.