XP Power Ltd. (DI) (XPP)

Sector:

Electronic and Electrical Equipment

Index:

FTSE Small Cap

1,042.00p
   
  • Change Today:
      6.00p
  • 52 Week High: 2,440.00
  • 52 Week Low: 776.00
  • Currency: UK Pounds
  • Shares Issued: 23.68m
  • Volume: 57,474
  • Market Cap: £246.76m
  • RiskGrade: 173

XP Power takes action to cut spending after profit warning

By Benjamin Chiou

Date: Friday 27 Oct 2023

LONDON (ShareCast) - (Sharecast News) - Electrical parts manufacturer XP Power, which disappointed the market earlier in the month after warning on profits due to weaker trading conditions, said it has taken "significant action" to cut costs and preserve cash.
On 2 October, the company said it was cutting its dividend with the full-year outlook below prior expectations as reduced demand led some customers to defer shipments into 2024, while the Chinese market was struggling.

Since then, it has embarked on a "significant and wide-ranging operating cost reduction programme", including job cuts and restrictions on non-discretionary spend which should amount to savings of £8-10m next year.

It is also planning to reduce inventory in the range of £10-20m over 2023 to 2025, review supplier payment terms and cut non-essential spending to "maintenance levels".

The company, which had warned it was close to its debt covenants, said it is now in "advanced and constructive discussions" with its lenders regarding future covenant requirements and other actions to strengthen the balance sheet.

Revenues in the third quarter were down 5% year-on-year at £75.1m, but operating profit was slightly ahead of the company's expectations due to a better September.

"We have made good progress over recent weeks with our cost mitigation plans to reduce the group's leverage. These plans are already well progressed and discussions with our lending banks are on-track and productive," said chair Jamie Pike.

"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."

The stock, which has more than halved since the 2 October profit warning, was up 3.4% at 1,040p in early deals on Friday.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

XPP Market Data

Currency UK Pounds
Share Price 1,042.00p
Change Today 6.00p
% Change 0.58 %
52 Week High 2,440.00
52 Week Low 776.00
Volume 57,474
Shares Issued 23.68m
Market Cap £246.76m
RiskGrade 173

XPP Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
46.23% above the market average46.23% above the market average46.23% above the market average46.23% above the market average46.23% above the market average
82.35% above the sector average82.35% above the sector average82.35% above the sector average82.35% above the sector average82.35% above the sector average
Price Trend
61.82% above the market average61.82% above the market average61.82% above the market average61.82% above the market average61.82% above the market average
84.62% below the sector average84.62% below the sector average84.62% below the sector average84.62% below the sector average84.62% below the sector average
Income
85.14% above the market average85.14% above the market average85.14% above the market average85.14% above the market average85.14% above the market average
20% below the sector average20% below the sector average20% below the sector average20% below the sector average20% below the sector average
Growth
7.48% below the market average7.48% below the market average7.48% below the market average7.48% below the market average7.48% below the market average
47.06% below the sector average47.06% below the sector average47.06% below the sector average47.06% below the sector average47.06% below the sector average

What The Brokers Say

Strong Buy 3
Buy 4
Neutral 0
Sell 0
Strong Sell 0
Total 7
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

XPP Dividends

  Latest Previous
  Q2 Q1
Ex-Div n/a 15-Jun-23
Paid n/a 13-Jul-23
Amount 0.000p 18.00p

Trades for 28-Feb-2024

Time Volume / Share Price
16:36 1,629 @ 1,041.33p
16:36 371 @ 1,041.33p
16:35 7,821 @ 1,042.00p
16:35 193 @ 1,042.00p
16:35 73 @ 1,042.00p

XPP Key Personnel

CEO Gavin Griggs
Chair Jamie Pike

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