Power Probe (AIM:PWR), the maker of automotive electrical diagnostic tools for professional technicians, reported revenue of $17.7m for the six months ended 30 June, down from $21.2m a year earlier.
The company said the decline reflects the timing of new product launches, with full-year revenue weighted toward the second half, consistent with previous guidance.
Gross margin rose to 50.4% from 40.8%, driven by a greater mix of Power Probe branded products, higher-margin private brand sales and pricing initiatives the company said the market has absorbed well. Adjusted EBITDA fell to $3.8m from $5.5m, with margin at 21.7% versus 26.1% a year earlier, partly reflecting around $550,000 of additional public company costs not incurred in the prior period; stripping these out, the margin would have been 24.8%.
"Trading was in line with expectations and gross margins improved significantly, reflecting the strength of the Power Probe brand, a favourable product mix and disciplined pricing," said chief executive Chema Garcia.
Significant product launches late in the first half are expected to contribute materially to second-half revenue, alongside continued investment in manufacturing capacity at the company's Charlotte, North Carolina facility, aimed at expanding capacity closer to its largest end market.
Power Probe will release unaudited half-year results on 14 September.
News Intelligence what this means for the company
Power Probe's H1 revenue fell 16.5% to $17.7m, but management attributes this entirely to the timing of new product launches weighted toward H2—a narrative consistent with prior guidance. The real story is margin: gross margin jumped 950 basis points to 50.4%, driven by a richer product mix and pricing power the market has absorbed. Adjusted EBITDA fell to $3.8m, though stripping out ~$550k of new public company costs leaves an underlying margin of 24.8% versus 26.1% prior year, a modest decline.
The H1 decline is a timing artifact, not a demand signal, according to the company, and the gross margin expansion demonstrates pricing discipline and brand strength in a market Power Probe says has accepted higher prices. The risk is execution: material H2 revenue must materialize from product launches now underway, and the Charlotte capacity investment must deliver returns in the company's largest market.
Insights assembled by AI. Editor-reviewed and grounded in tickstock’s coverage and proprietary knowledge graph.
Content is for informational purposes only, not financial advice.
