Shares in power control component supplier XP Power (XPP) sparked up 1.8% to £47.85 on the news the group expects its annual performance to be towards the top end of current analyst expectations.
This follows an impressive 28% third quarter sales surge, although XP Power also flagged potential risks arising from ‘a second wave of COVID-19 and the resultant global macroeconomic impact, and ongoing trade tensions’.
ABOUT XP POWER
One of Shares’ recent Great Ideas selections, XP Power is a science-based engineer of complex power equipment solutions. Many power systems require custom output voltage combinations, unique control or status signals and specific mechanical packaging for optimal performance and integration.
This is kit designed for when off-the-shelf solutions simply won’t do, such as AC-DC (alternating current - direct current) power supplies, DC-DC converters, high voltage power and radio frequency power capability. The group’s target markets include defence, aerospace, healthcare, rail and also semiconductors.
QUARTERLY SALES SURGE
XP Power’s board now anticipates performance for full year 2020 ‘will be towards the top end of current analyst expectations’ following a strong third quarter to September in which constant currency revenue rose 32%.
Quarterly sales ‘progressed positively’ as the exceptionally strong order intake XP Power saw in the first half translated into product shipments.
‘Order intake continues to be encouraging driven by demand in the Semiconductor Equipment Manufacturing sector,’ explained XP Power, although it stressed ‘healthcare orders have now returned to normal levels, following the COVID-19 related demand we saw in the first six months of 2020’.
The company, whose chief executive Duncan Penny will retire at the end of 2020, to be replaced by chief financial officer Gavin Griggs, remains ‘confident in the long-term market opportunity for the group, supported by the structural growth drivers in the marketplace, and in our ability to capture this opportunity.’
