XP Power cancels Q2 dividend payment

Power converter solutions provider XP Power said on Friday that it has cancelled its second-quarter dividend payment following discussions with major shareholders.

Having taken account of views expressed by its major shareholders, the company has decided to cancel the second-quarter dividend of 19.0p per share, approximately £3.75m of cash expenditure, that was due to be paid to eligible shareholders on 12 October 2023.

The London-listed group said it will continue to take "all necessary internal actions" to manage its cost base and cash resources, in order to strengthen the balance sheet in the near term.

XP Power added that no further dividends will be paid in respect of the 2023 financial year but said it "recognises the importance of dividends to shareholders" and will recommence paying dividends "as soon as appropriate".

Chairman Jamie Pike said: "Notwithstanding these short-term challenges, the board believes XP has a positive longer-term outlook and we are fully focused on ensuring that the group realises its potential."

As of 0935 BST, XP shares were down 5.56% at 764.0p.

Reporting by Iain Gilbert at Sharecast.com