XP Power Stock: Investor Rebellion Amid Mixed Q1 Results

XP Power faced significant shareholder dissatisfaction during its recent Annual General Meeting in Singapore, where the directors' remuneration report was firmly rejected with 51.62% of votes against it. Chairman Jamie Pike encountered substantial opposition as well, with 22.20% voting against his re-election. The company pledged to engage with dissatisfied shareholders following these clear signals of discontent. Meanwhile, Odyssean Investment Trust dramatically increased its stake to 10.56% from 5.32%, effectively doubling its influence despite the ongoing governance concerns. This contrasting investor behavior comes as the company reported Q1 revenues of £53.8 million, representing an 18% year-over-year decline, partially due to its planned withdrawal from the Chinese semiconductor equipment market.

Order Book Shows Promise Amid Debt Reduction

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More encouragingly, XP Power's order intake surged to £57.4 million, marking a 30% year-over-year increase driven by strengthening demand in semiconductor manufacturing equipment. The book-to-bill ratio improved significantly to 1.07x from 0.68x in the previous year. The company also made progress in reducing its net debt to £65.4 million, down £28.1 million from year-end 2024, bolstered by improved cash generation and a recent £40 million share placement. However, potential trade tariffs remain a concern, with approximately 30% of the group's revenue coming from products imported into the US market, primarily from Asia.