XP Power, the power-controllers manufacturer, has announced the cancellation of its second-quarter dividend, which was set to be paid next week. This decision comes after considering the opinions of its major shareholders, the company revealed on Friday.
Despite previously stating that it would still pay a second-quarter dividend on October 12th, XP Power has decided to scrap all dividend payments for the remainder of the year. This decision was made in light of expectations that the company's 2023 operating profit would fall below the board's forecasts.
The cancellation of the second-quarter dividend means that approximately £3.75 million ($4.6 million) in cash spend will be retained by the company. The dividend initially declared for this quarter was 19.0 pence per share.
XP Power is actively taking measures to manage its cost base and utilize its cash resources wisely in order to strengthen its balance sheet in the short-term. The company intends to resume its dividend policy as soon as it is deemed appropriate.
Chair of XP Power, Jamie Pike, assured investors that despite these current challenges, the company holds a positive long-term outlook. Pike emphasized the board's commitment to realizing the group's full potential.
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