(Alliance News) - XP Power Ltd on Wednesday maintained its yearly expectations and said it expects trading to improve as demand in its semiconductor equipment unit starts to pick up.
Shares in the maker of power control systems rose 9.6% to 1,086.00 pence each in London on Wednesday.
XP Power said revenue in the first-quarter to March 31 fell 17% on-year to GBP64.6 million. It declined 15% at constant currency.
Order intake was 29% lower at GBP43.7 million.
"Sales and order intake in the Semiconductor Manufacturing Equipment sector were at a similar run-rate to that achieved in the second half of 2023. Sales and order intake in the Healthcare and Industrial Technology sectors slowed as customers continued to destock," XP Power said.
The Singapore-based firm's offering is used in sectors including renewable energy, water cleaning, industrial robotics and healthcare patient treatment.
XP Power left its annual outlook unchanged. Back in its March annual results, it predicted activity levels would "reduce" this year, after it achieved record revenue in 2023. At the time, it said it made moves to "lower our cost base accordingly".
The company said on Wednesday: "As expected, revenue in Q2 is likely to be slightly lower than Q1 due to ongoing customer destocking, and we continue to expect trading to improve during 2024 as channel stock levels reach equilibrium and as demand for Semiconductor Manufacturing Equipment begins to increase. Order intake in Q2 will provide greater clarity on the timing and trajectory of this improvement.
"We are confident that our market positions remain strong and that the group is well positioned to prosper as our key markets resume their trajectory of healthy long-term growth."
Wednesday's share price rise means the stock is approaching its best level since suffering a deep sell-off in February. It is up 12% since then.
The stock slumped more than 35% on February 16 after it warned results for 2024 would be "significantly below market expectations".
"This is based on recent order intake, revenue performance and discussions with customers, particularly within the Healthcare and Industrial Technology sectors, which confirm unusual, temporarily soft demand conditions and destocking. These softer trends have also emerged within our direct industry peers," it explained at the time.
By Eric Cunha, Alliance News news editor
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