XP Power (XPP.L), a company specializing in critical power control solutions for the industrial sector, announced on Friday that it anticipates a decrease in revenue for the entire fiscal year of 2024. This forecast, significantly lower than market projections, is attributed to sluggish demand.
The company's prediction stems from current customer orders, revenue trends, and dialogues, especially within the Healthcare and Industrial Technology sectors. These interchanges have highlighted an unusual and temporary downturn in demand, coupled with inventory reduction. The decline in 2024 is primarily prompted by clients reducing their stockpiles in response to shorter delivery lead times.
However, predicting the precise timing and rate of recovery is a challenge. "We anticipate 2024 will show a marked improvement in the latter half of the year, with trading conditions steadily improving," XP Power stated.
For the fiscal year of 2023, XP Power discerned some capitalized product development expenses that needed to be either amortized or impaired. This examination added a non-cash sum of 4 million pounds to the company's overheads.
The organization indicated that 2023's underlying operating profit aligns with their projections. They are set to publish their annual results on March 5, 2024.
