Updates

XP Power - £41m placing to reduce debts

April 2025

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Alongside its FY24 results, XPP announced a £41m placing. Sales declined by 20% to £247.3m, with an order intake of £182m (-10%). Operating profit fell by 33% to £25.1m, implying a margin of 10.1% versus 12%. EPS halved to 42.9p while cost-saving measures and inventory management helped reduce net debt to £93.5m, bringing leverage down to 2.3x. FY24 was affected by a combination of channel destocking in Industrial Technology and Healthcare segments whilst recovery in Semiconductor Equipment Manufacturing has remained elusive. Additionally, headwinds from US-China trade policy changes restricted the export of products to certain customers within China’s semiconductor equipment manufacturing sector and there were also additional leg ...

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