XP Power Ltd (LSE:XPP) saw a “significant” improvement in trading in the past quarter, saying supply chain conditions were easing.
The FTSE 250-listed supplier of power control components to the electronics industry reported £79.4mln of revenue for the third quarter, up 29% year-on-year or 15% if the impact of the weak pound is ignored.
Compared to the second quarter, sales were up 28% too.
Order intake growth slowed to 4%, or down 8% on a constant currency basis, but is still up 15% for the year to date, with £294.2mln in total and said to be “robust in each segment”.
The book-to-bill ratio, which tracks the relationship between orders received and completed sales, was 1.27 for the third quarter of 2022 but this exceptional level is expected to moderate in coming quarters as supply chain conditions continue to ease and the company delivers orders.
On the outlook, management said their expectations for the full year are in line with current market expectations.
“We are pleased with the performance in the third quarter and while this needs to continue to improve through the final quarter we are better demonstrating our potential as supply chain issues continue to improve.
“Demand remains robust and our record order book gives us excellent visibility through year-end and into 2023, underpinning our confidence in the group’s future prospects.”
The shares were up 1% at 1,603.3p after just over an hour's trading on Tuesday.