Julian Cane says XP Power can recharge
XP Power (XPP) has faced supply chain and inflation pressures but CT UK Capital & Income (CTUK) manager Julian Cane believes longer term it can return to its former glory.
In his latest update for the £357m investment trust, Cane noted the problems faced by the power supply manufacturing business which made it the largest detractor to his fund in September following weak first-half results.
‘Its products are still very much in demand, as is evidenced by the strength of its order books, but it has continued to experience supply chain problems,’ he said.
‘Together with inflationary pressures, this has led to a disappointing set of financial results. We remain confident that in the medium and long term, XP Power will return to being a highly successful company and investment.’
Shares in XP Power were trading down 1.3% at £16.48 on Thursday afternoon, having lost two-thirds of their value this year.