11th Jan 2022 21:28
(Alliance News) - XP Power Ltd on Tuesday said it expects profit below the lower end of market expectations, but reassuringly said it is entering the new year with a record order book.
XP shares rose 4.2% to 5,000.00 pence each in London on Tuesday.
XP Power is a Singapore-based maker of power controllers, which convert power from the electricity grid into the form needed by industrial equipment.
XP reported revenue of GBP8.8 million in the fourth quarter of 2021, up 4% year-on-year but "slightly down on the board's expectations". XP said this was due to the previously announced supply chain constraints, specifically the availability of key components and freight capacity impacted customer deliveries towards the end of the year.
As a result, 2021 adjusted operating profit is anticipated to be modestly below the lower end of the current market expectations of between GBP46 million to GBP48 million.
Full year revenue has grown 10% on a constant currency basis, or up 3% as reported, to GBP240.2 million.
Full year order intake was up 43% at constant currency and the company enters 2022 with a record order book, it said. The increase was driven by the Semiconductor Manufacturing Equipment sector.
Looking ahead, XP said: "The group starts the new financial year with a record order book, which provides excellent visibility through 2022. While we remain mindful of the ongoing uncertainties in respect of component supply and freight capacity and costs and are continuing to monitor the situation carefully, we are optimistic on the group's prospects for the year ahead and plan to invest in new manufacturing capacity in 2022 to support the future growth of the group."
Annual results are due on March 1.
By Greg Roxburgh; [email protected]
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