XP Power Ltd left its full-year outlook unchanged and said it traded in line with expectations during the first quarter of 2023.
The Singapore-based maker of power controllers said revenue improved, though order intake weakened.
Revenue rose 26% annually to £77.9 million from £61.8 million. Order intake declined 40% to £61.2 million from £102.4 million.
On the sliding order intake, XP Power explained its semiconductor manufacturing equipment and industrial technology arms saw the ‘greatest impacts’.
‘We would expect similar order intake patterns through the second quarter before a pick up in the second half of 2023,’ XP Power added.
XP Power said: ‘The group has traded well in the opening months of 2023. We have significant order book visibility covering the remainder of 2023, and into 2024, and as such our full year expectations are unchanged. We continue to expect a modest second half weighting to the full year outturn. Longer term, the board believes XP’s clear strategy and financial framework leave the group well positioned to grow ahead of its end markets, drive further market share gains, improve profitability and deliver strong cash generation.’
It declared a first quarter dividend of 18 pence, unchanged on-year.
It expects its net debt to earnings before interest, tax, depreciation, and amortisation ratio at the end of June to be lower than at the end of 2022, due to its ‘improved trading and stronger cash performance’.
‘We continue to expect net debt/Ebitda to reduce towards two times by the end of 2023,’ it added.
Shares in the company rose 1.1% to 1,880.00 pence each in London on Thursday late morning.
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