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XP Power Ltd on Tuesday said it swung to a loss as revenue fell in the first half of the year, but said it has seen ‘clear signs of improvement in market conditions’. In response, shares in XP Power jumped 16% to 988.00 pence in London on Tuesday afternoon. The Singapore-based maker of power control systems said revenue fell 13% to £110.9 million in the six months to the end of June from £127.1 million a year ago. The company said lower revenue reflected residual channel destocking. The firm swung to a pretax loss of £1.4 million from a £3.2 million profit. Although cost of sales fell 14% to £64.8 million from £75.5 million, distribution and marketing expenses climbed 3.4% to £30.3 million from £29.3 million while research & development expenses were up 8.3% to £10.4 million from £9.6 million. The firm said order intake was £112.7 million in the first half, up 28% from £87.9 million a year ago. Dividend payments were suspended in late 2023. The firm said it believes that it is in the long-term interests of shareholders for debt reduction to be prioritised over distributions until net debt moves close to its long-term leverage target. As a result, no dividends are expected to be declared for financial 2025. Looking ahead, XP Power said there are ‘clear signs of improvement in market conditions’, though it remains mindful of an ‘evolving macro environment including global trade tariff rules’. It said it has taken ‘additional efficiency actions’ during the first half that will benefit the second half and into 2026. ‘We will remain disciplined and vigilant while the recovery is established,’ XP Power added. It expects to make ‘healthy sequential progress’ in the second half. It said the extent of the progress will depend on its order book in the fourth quarter, which will build over the third quarter. ‘We have started to see the initial signs of improving market conditions supported by channel destocking nearing an end. That said, it is too early to understand the shape of the recovery to come,’ said Chief Executive Officer Gavin Griggs. ‘We are pleased with our product pipeline, business wins, operational execution and cash performance in the first half, which place us in a strong position as our end markets improve.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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