XP Power issued a trading update for the period 1 October 2019 to date. The group’s short-term disruption to shipments from the implementation of a new Enterprise Resource Planning (ERP) system will result in revenues and adjusted PBT for 2019 being below current market consensus.
The group estimates revenues for 2019 to be approximately £6m below its previous internal expectations, with its high operational gearing meaning that adjusted PBT for the current year will also be below existing expectations depending on its production and shipment rates during December.
The board expects to recover the fourth quarter revenue shortfall resulting from the ERP system implementation during the first quarter of 2020. The company however kept unchanged its outlook for 2020, driven by robust order intake in the first two months of the fourth quarter. Order intake during the first two months for the quarter was more than 20% higher than the same two months of the prior year.