XP Power Q3 revenues progress 'positively'

Power control components manufacturer XP Power said on Monday that third-quarter revenues had progressed "positively" as the "exceptionally strong" order intake seen in the first half translated into product shipments.

XP Power reported a 28% increase in third-quarter revenues to £69.0m and 1% bump in orders to £56.3m, while year-to-date revenues were 14% higher at £174.1m and orders were 29% stronger so far in 2020 at £202.1m.

The FTSE 250-listed group stated its order intake continued to be "encouraging", driven by demand in the semiconductor equipment manufacturing sector, while healthcare orders were said to have now returned to "normal levels" - partly due to a £15-20m net increase linked to Covid-19.

Net debt as of 30 September came to £28.2m, down from the £34.4m reported as of 30 June.

XP Power also proposed a dividend for the third quarter of 20p per share, the exact same figure as it had a year earlier.

Looking forward, XP anticipates its full-year 2020 performance will be towards "the top end of current analyst expectations", although the firm said it remains conscious of potential risks arising from a second wave of Covid-19 and associated global macroeconomic impact and ongoing trade tensions.

Elsewhere, XP revealed that chief executive Duncan Penny had announced his intention to retire from the role after more than 17 years on 31 December.

Penny will be replaced by Gavin Griggs, currently the firm's chief financial officer.

As of 0850 BST, XP Power shares were up 4.81% at 4,926.0p.