Source - Alliance News

XP Power Ltd on Tuesday backed annual profit guidance despite its weakest sales quarter of the financial year.

The Singapore-based maker of power control systems said revenue fell 26% to £60.0 million in the year ending December from £81.1 million a year prior, or by 22% at constant currency.

It was the weakest quarter of the financial year, easing from £60.2 million in the previous three months.

Order intake in the quarter was 7% lower at £44.9 million from £48.4 million, or down 2% at constant currency.

For 2024 as a whole, revenue fell 10% to £247.3 million from £316.4 million. Order intake was 13% lower at £181.6 million from £208.8 million.

Despite the sales fall, XP Power expects adjusted operating profit for 2024 within the range of current analyst expectations of £25.1 million to £27.6 million.

‘The board is encouraged by signs that channel inventory is moving closer to equilibrium and by improving underlying conditions in the semiconductor industry but is also mindful of increased macro and geo-political headwinds in Asia. Whilst it is too soon to be definitive about prospects for 2025, these trends suggest our performance is likely to be weighted toward the second half,’ the firm said in a statement.

XP Power said revenue continued to face a headwind from currency movements in the quarter, although this has since begun to dissipate in early 2025.

Sales into the semiconductor manufacturing equipment sector in the quarter grew by 13% sequentially.

Destocking continued in the Industrial Technology and Healthcare sectors, but with improving trends in order intake.

The company flagged slower than expected demand from Asia, reflecting regional macro-economic conditions and some market hesitancy until global trade policies become clearer.

In response, shares in XP Power were 6.4% lower at 1,213.10 pence each in London on Tuesday afternoon.

XP Power said it remains confident in the group’s long-term prospects.

‘XP Power has leading positions in attractive end markets, has a strong pipeline of new product launches scheduled for 2025 and is winning record amounts of new business, supporting medium-term growth. This should deliver significant performance improvement when markets recover,’ it said.

Copyright 2025 Alliance News Ltd. All Rights Reserved.

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