XP Power issues profit warning following shipping disruptions

Critical components manufacturer XP Power warned on Tuesday that it had experienced some short-term disruption to shipments in the third quarter, resulting in revenues and adjusted profit before tax for 2019 now looking set to come in below current market consensus.

XP Power said the delay was a result of the implementation of a new Enterprise Resource Planning system.

However, the London-listed firm said its outlook for 2020 was unchanged against a backdrop of robust order intake so far in the fourth quarter.

Looking forward, as a result of current shipment run-rates now tracking at least in-line with expectations, XP expects to recover the fourth-quarter revenue shortfall resulting from the ERP system implementation during the first quarter of 2020.

XP said: "Given the recent investments we have made in our supply chain, in engineering resources to drive new products and the expansion of our addressable market through acquisition, we remain confident regarding our long-term strategy for growth."

As of 1125 GMT, XP Power shares were up 1.15% at 2,913.20p.