XP Power shares fell 6.5% to 2,840.6p in late morning trading on Monday, after the company announced a reported operating loss of £45.2 million in HY1 2022 from an operating profit of £17.1 million the last year.
The power solutions firm announced a pre-tax loss of £47.4 million compared to a pre-tax profit of £16.4 million year-on-year, alongside a diluted loss per share of 180.6p against an earnings per share of 68.1p.
XP Power confirmed an operating cash flow loss of £13.1 million compared to an operating cash flow of £19.7 million in the previous year.
Meanwhile, the company highlighted a net debt of £102 million from £20.3 million in HY1 2021.
However, XP Power mentioned a 3% uptick in revenue to £123.6 million against £119.9 million the year before.
“While underlying demand remained strong across all sectors, a combination of external supply chain factors, which restricted our capacity to deliver to customers, and inflationary pressures have produced a challenging backdrop in the first half,” said XP Power chair James Peters.
“The team is working hard to mitigate these industry-wide challenges, with an improvement in performance in Q2 being sustained into the early weeks of the second half. While we are confident of a substantially better performance in the remainder of 2022 supported by the inventory on hand and a record, committed order book, there remains a wider range of full year outcomes than in prior years including scenarios where full year outturn is at the lower end of current analyst expectations.”
“Longer term, the Group’s prospects remain bright, we are excited by the additional capacity to come from our new Malaysian facility and the opportunities that will provide. We are confident of delivering strong revenue growth and significant long term value creation as we outperform our end markets.”
The group noted an interim dividend of 37p, remaining flat against the last year.