XP Power swung to a half-year loss as lower production volumes and inflation hit revenue growth.
The company posted a pre-tax loss of £47.4m from a profit of £16.4m a year ago. Revenue grew 3% to £123.6m.
“While underlying demand remained strong across all sectors, a combination of external supply chain factors, which restricted our capacity to deliver to customers, and inflationary pressures have produced a challenging backdrop in the first half,” the company said.
“The team is working hard to mitigate these industry-wide challenges, with an improvement in performance in Q2 being sustained into the early weeks of the second half.”
“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 including scenarios where full year outturn is at the lower end of current analyst expectations.”
XP Power said that longer term, the its prospects remain “bright” and expected a boost from extra capacity at its new Malaysian facility.
“We are confident of delivering strong revenue growth and significant long term value creation as we outperform our end markets,” it added.
Reporting by Frank Prenesti at Sharecast.com
