XP Power Ltd - designs and manufactures power controllers - Says third-quarter revenue is down to GBP75.1 million from GBP79.4 million a year before, though operating profit is slightly ahead of its previous expectations, which it credits to a "better outturn in September". Trading in October is "at least" in line with its expectations, with the firm leaving its expectations for the full-year unchanged. Also outlines several cost reduction and cash preservation measures which will benefit this year and the next. These include cutting headcount, restricting non-discretionary spend, which will save GBP8 to GBP10 million next year, it says.
Additionally, notes "advanced and constructive discussions" with its lending banks concerning "future covenant requirements and other near-term actions to strengthen the balance sheet". Will update on these shortly.
"Longer term, the board is confident that XP's clear strategy leaves the group well positioned to grow ahead of its end markets, drive further market share gains, improve profitability and deliver strong cash generation," says Chair Jamie Pike.
Current stock price: 1,086.00 pence, up 8.0% on Friday
12-month change: down 36%
By Elizabeth Winter, Alliance News senior markets reporter
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Xp Power (XPP)