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(Alliance News) - Power supply products firm XP Power Ltd reported a fall in annual profit on Tuesday, with margins hurt by international trade disputes.
XP Power's pretax profit was 36% lower for 2019 at GBP24.0 million, though the adjusted figure declined by 19% to GBP33.2 million.
The company's final dividend for the year is 36.0 pence per share. This takes the year's total to 91.0p, 7% higher than the year before.
XP Power said order intake and revenue was "robust" in the Technology, Industrial Electronics, and Healthcare sectors. However, there was "cyclical weakness" in semiconductors.
XP Power's gross margin slipped to 45.1% from 47.3%, which the firm said was due to trade tariffs imposed by the US on China as well as an "adverse product and geographical mix".
"Despite these headwinds we grew order intake and revenue over prior years, continued to win new designs and made good strategic progress," said Chair James Peters.
Looking ahead, Peters said trading in the early part of 2020 gives grounds for optimism.
"Signs of a recovery in the semiconductor equipment manufacturing sector are reflected in our strong order intake in the fourth quarter of 2019 and are finding good opportunities for the products brought into the group portfolio through the acquisitions of Comdel and Glassman," the chair commented.
"We also expect benefits from the transfer of production from Minden to Vietnam in the second half of 2020. However, we are affected by certain external events, such as the impact the outbreak of the COVID-19 virus had on our supply chain. This introduces some caution into our outlook, but we remain encouraged by our healthy order book," he added.
Radiofrequency power firm Comdel was purchased in October 2017 for USD23 million, with power supply maker Glassman High Voltage bought in 2018 for USD44.5 million.
Shares were 7.0% higher on Tuesday morning in London at a price of 3,210.00 pence each.
By George Collard; georgecollard@alliancenews.com
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