Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
XP Power revenues seen 'significantly below' FY expectations
(Sharecast News) - Power control solutions manufacturer XP Power warned on Friday that full-year revenues would be "significantly below market expectations", sending shares sharply lower in early trading. XP Power noted that based on recent order intake, revenue performance and discussions with customers, particularly within the healthcare and industrial technology sectors, it had confirmed "unusual, temporarily soft demand conditions and de-stocking". The group added that these softer trends had also emerged within its direct industry peers.
"In early 2024, we have seen, as expected, the continuation of the ongoing cyclical slowdown in the semiconductor manufacturing equipment sector and we continue to expect conditions in this sector to improve as the year progresses," said XP.
"We now expect to also see a slowdown in the industrial technology and healthcare sales, driven particularly by customer inventory movements. These markets are not typically cyclical for us. The slowdown in 2024 is driven by customer stock movements as they reduce their inventory in response to shorter delivery lead times."
In general, XP expects weakness to be "relatively short-lived" and said there had already been "some more encouraging signals" from certain customers, especially for 2025, in recent weeks. However, it noted that the timing and speed of the recovery was hard to predict and expects 2024 to be "significantly second-half weighted" with an improvement in trading as the year progresses.
XP added that its year-end financial close processes had identified some capitalised product development costs that needed to be amortised or impaired, adding £4.0m to costs. Underlying operating profits for 2023 were absent these costs.
As of 0855 GMT, XP Power shares had slumped 38.58% to 920.0p.
Reporting by Iain Gilbert at Sharecast.com
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing programme
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.