The Cambridge-based inkjet technology company, which manufacturers the Xaar 1001 and the newly launched Electron and Proton wide-format printheads, has begun a consultation to move its operations from Järfälla in Sweden to Huntingdon in the UK, over a two-year period.

The announcement was made this morning as the company reported its full-year results for 2008, recording a pre-tax profit of £4.4m – down from £7.3m in 2007 – on a turnover of £42m (2007: £47.9m).

Chief executive Ian Dinwoodie said the company's performance was strong considering the current economic climate.

He also expressed frustration with the pace at which digital technology is being adopted in the market.

"Last year's Drupa was dubbed 'the inkjet Drupa' and we need to turn that into real business – we have to keep battering on the door," he said. 

In a statement to the London Stock Exchange, released this morning, the company said that inkjet adoption was "frustratingly slow", adding that "numerous non-digital OEMs have substantial vested interests based on their equipment, service and maintenance revenues reliant on traditional printing technologies".

Xaar has long been rumoured to be on the verge of announcing a major tie-up with a traditional press manufacturer.

Dinwoodie said the company was "always in discussions" with a number of parties but would not be drawn on details.

Last year was a year of development for Xaar with the launch of the Electron and Proton printheads aimed at the wide-format and grand-format markets.

Dinwoodie said: "We lost some ground in these markets last year and are looking to regain that share. We are also seeing good progress in the label printing market and ceramic tile decorations."

The company has embarked on a number of cost saving initiatives, which includes the proposed relocation to the UK.

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Xaar releases in-line results for 2008
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