XP Power shares fall on swing to interim loss, warns of outlook

(Alliance News) - XP Power Ltd shares fell on Monday after it reported a swing to an interim loss, amid supply chain and cost pressures, and warned about its full-year performance.

XP Power shares were trading 9.3% lower at 2,757.45 pence each in London on Monday morning.

The Singapore-based maker of power controllers swung to a pretax loss of GBP47.4 million in the six months to June 30, from a profit of GBP16.4 million a year before, as administrative expenses multiplied to GBP51.3 million from GBP5.4 million.

What's more, research and development costs more than doubled to GBP17.2 million from GBP8.5 million.

Revenue rose 3.1% to GBP123.6 million from GBP119.9 million.

The FTSE 250 listing credited this to growth in all segments, especially Healthcare.

XP Power maintained its interim dividend of 37.0 pence per share to reflect its "confidence in its medium to longer-term prospects."

Nonetheless, XP called its financial performance for the period "disappointing", due to a combination of external supply chain factors and inflationary pressures that limited its ability to perform.

"While we are confident of a substantially better performance in the remainder of 2022 supported by the inventory on hand and a record committed order book, there remains a wider range of full-year outcomes than in prior years," the company cautioned.

Chair James Peters commented: "Longer term, the group’s prospects remain bright, we are excited by the additional capacity to come from our new Malaysian facility and the opportunities that will provide. We are confident of delivering strong revenue growth and significant long-term value creation as we outperform our end markets."

By Abby Amoakuh; abbyamoakuh@alliancenews.com

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