XP Power, which makes power control components for the electronics industry, has posted an 11 per cent decline in revenues for the nine months ended September 30th compared to the same period the previous year, rising to 12 per cent on a constant currency basis.
The firm was hit by subdued global demand for the capital equipment manufactured by its customers, but believes the situation is looking up.
In a trading update the group said: "While the trading environment remains challenging, order intake continues to be above the low levels experienced in the later part of 2011. We therefore expect a modest sequential improvement in second half revenues as these enter production in the fourth quarter, with a corresponding improvement in gross margins due to higher factory utilisation.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"At some point we expect companies to take advantage of the low cost of funds and invest in new equipment incorporating the latest technologies to improve their productivity. In the interim, we will continue to press for further market share gains from our portfolio of market-leading power technology products."
At the half year point the firm posted profit after tax for the year of £9.6m (2011: £11.9m) on revenues of £46.5m (2011: £51.9m), pushing the gross margin from £25.7m to £21.8m.
On Tuesday the share price fell 6.04% to 949p by mid-morning.
NR
-
Divorce financial settlement fights surge – why it pays to agree terms earlyLawyers expect more court battles as tax rises and sharp falls in asset values make divorcing financially more difficult.
-
Emotional investing: what is it and how you can avoid itAre you an emotional investor? Your feelings could be damaging your long-term investments, but here's how to stay rational when the markets are turbulent.
