XP Power reports ongoing decline in revenues but eyes recovery

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.

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.

"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

Recommended

The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
2 Feb 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

Best savings accounts – February 2023
Savings

Best savings accounts – February 2023

Interest rates on cash savings are making a comeback. We look at the best savings accounts on the market now
3 Feb 2023
The best one-year fixed savings accounts - February 2023
Savings

The best one-year fixed savings accounts - February 2023

Earn almost 5% on one-year fixed savings accounts.
3 Feb 2023
After slumping 42% last year, what's next for Scottish Mortgage?
Investment trusts

After slumping 42% last year, what's next for Scottish Mortgage?

After a spectacular couple of decades, the Scottish Mortgage Investment Trust fell by 42% last year. We take a look at the trust's performance and dis…
3 Feb 2023