Industrial and healthcare technology names dominated a busy reporting session, with power electronics specialist XP Power delivering the standout update as order momentum accelerated sharply across its semiconductor, healthcare and industrial end markets. Xaar and Focusrite both pointed to steady demand and improving profitability, while Smith+Nephew tempered its growth outlook even as margins held up. Smaller names Filtronic, Metir and MedPal AI rounded out the day with contract, supply and revenue-run-rate updates respectively.
XP Power's order intake surges 55% as book-to-bill hits four-year high
XP Power (LSE:XPP), which designs and manufactures power control solutions for the semiconductor manufacturing equipment, healthcare and industrial technology sectors, has reported a marked recovery in demand across all of its markets. Order intake reached £167.2m in the six months to 30 June, up 55% on the prior period in constant currency, a swing that pushed the book-to-bill ratio to 1.53 times, its highest level since the first half of 2022. The shares eased 3.08% to 1678.7p even as the numbers pointed to a broad-based improvement in trading conditions.
Revenue rose 2% in constant currency to £109.1m, with growth building through the period from £51.8m in the first quarter to £57.3m in the second. Adjusted operating profit climbed to £8.6m, lifting adjusted operating margin to 7.9% from 4.3% a year earlier, while adjusted gross margin expanded 450 basis points to 45.9%, ahead of the company's own mid-40s target. Net debt stood at £47.7m, or 1.3 times last-twelve-month adjusted EBITDA, in line with expectations and set to reduce further by year-end. The company has already banked £135m of firm orders for the second half and has closed its China factory as it shifts production toward Malaysia, where a new site is nearing pilot output, and Vietnam, where capacity is being expanded.
"The first half of 2026 saw a significant, broad-based improvement in market conditions across all our sectors and regions, with order intake up 55% in constant currency," said Gavin Griggs, chief executive of XP Power.
The scale of the order recovery and the margin expansion look more significant than the modest revenue growth suggests, since the backlog now provides substantial visibility into the second half and beyond. Management's decision to leave full-year guidance unchanged despite the strength of the order book points to a degree of conservatism, but it also removes the risk of a credibility gap if conditions soften; instead, the setup looks skewed toward the possibility of upside surprise as the £135m in scheduled orders converts to revenue and the reshaped manufacturing footprint in Malaysia and Vietnam starts contributing to margins.
Xaar swings to profit as printhead demand lifts H1 revenue
Xaar (LSE:XAR), the inkjet printing technology group, reported revenue from continuing operations of £29.7m for the six months to 30 June, up from £27.2m a year earlier and a 9.2% rise at constant currency. The group swung to an adjusted profit before tax of £0.2m, against a £0.7m loss in the same period last year, though shares slipped 2.9% to 117.0p on the update.
Printhead revenue, the core of the business, rose 5.5% to £21m as new OEM adoption offset softer demand in textiles and jewellery wax, the latter hurt by higher gold prices and Middle East disruption. Engineered Print Solutions revenue grew 15.9% to £7.3m under new management, and Megnajet revenue rose 27.3% to £1.4m. Net debt stood at £0.1m at period end, versus net cash of £5.1m a year earlier, reflecting higher capital expenditure of £2.4m and inventory build ahead of OEM launches. "Strong pre-launch demand for the Flashforge CJ270, evidenced by the receipt of initial printhead orders and the continued build-up of volumes ahead of commercial launch, further validates our strategy to expand into high-value applications," said Megnajet's chief executive.
The return to profit, modest as it is, marks a turning point after a year of losses, and the diversification into Engineered Print Solutions and Megnajet is starting to offset the drag from legacy end markets like jewellery wax. The inventory build and capex ahead of the Flashforge CJ270 launch explain the swing to net debt, but if OEM orders materialise as management expects, that investment should look well-timed rather than a balance-sheet strain.
Focusrite reiterates full-year outlook as demand stays healthy
Focusrite (AIM:TUNE) told shareholders at its Annual General Meeting that trading has continued in line with the board's expectations, with healthy underlying demand across both its Content Creation and Audio Reproduction divisions. The group, which supplies audio hardware and software to musicians and the entertainment industry under brands including Focusrite, Novation and Martin Audio, said sales in the opening months of the new financial year are running ahead of the prior year, and shares rose 2.32% to 242.5p.
Outgoing non-executive chairman Phil Dudderidge OBE said the early strength reflects the expected heavier weighting of sales toward the first half. The board's expectations for the year to 28 February 2027 remain unchanged, with sell-side forecasts pointing to revenue of £170.1m to £173.7m and adjusted EBITDA of £25.2m to £27.4m. Dudderidge is stepping down as chair after the meeting but will remain on the board as a non-executive director, with incoming chair Ian set to succeed him. "The Group enters this next chapter from a position of strength, with leading brands, an exceptional management team and significant opportunities for future growth," he said.
The leadership handover comes at a moment of relative stability rather than upheaval, with trading already ahead of last year and guidance untouched, which should ease any concerns about continuity as a new chair takes over.
Smith+Nephew cuts revenue outlook but holds profit guidance
Smith+Nephew (LSE:SN.), the medical device maker known for its orthopaedics, sports medicine and wound care products, reported second-quarter revenue of $1,597m, with underlying growth of just 1.6%, slower than the group had anticipated. Shares stood at 1262.5p as the company pointed to softness in US Orthopaedics and Advanced Wound Bioactives, partially offset by continued strength in Sports Medicine.
First-half revenue reached $3,097m, up 2.3% on an underlying basis, while trading profit rose 8.1% on a reported basis to $566m, lifting the trading profit margin by 60 basis points to 18.3%. Adjusted earnings per share climbed 11.0% to 47.7 cents. The company now expects full-year revenue growth of around 4%, down from its previous guidance of around 6%, but held firm on trading profit growth of around 8% excluding acquisitions, free cash flow of around $800m, and adjusted return on invested capital above 10%, alongside an additional $50m in efficiency savings.
The decision to protect profit and cash-flow targets while cutting the top-line outlook suggests management is prioritising margin discipline over chasing volume in weaker categories, a stance that should reassure on earnings quality even as it raises questions about how quickly US Orthopaedics can recover.
Filtronic points to strong order book despite investment drag on earnings
Filtronic (AIM:FTC) shares fell 7.371% to 232.5p as increased investment weighed on near-term earnings, even as the company struck a confident tone on its outlook. Chief executive Nat Edington said the group holds a strong order book already providing substantial coverage for FY2027 revenues, alongside growing engagement across key programmes.
"With a strong order book already providing substantial coverage for FY2027 revenues and growing engagement across key programmes, we are excited about the opportunities ahead," Edington said. The scale of the share price reaction suggests investors are focused on the near-term earnings impact of the investment spend rather than the multi-year revenue visibility management is highlighting.
Metir signs UK water alliance as SRB kit production nears restart
Metir (AIM:MET), the environmental monitoring group, has struck a UK distribution tie-up with MechLine-UK and confirmed that production of its QuickChek SRB kits will resume in October following a supply halt. Shares rose 3.333% to 0.775p on the news.
The distribution deal gives Metir a route into the UK water sector at the same time as it resolves the supply disruption that had interrupted SRB kit output, removing a near-term overhang on the product line just as the new partnership creates a fresh sales channel.
MedPal AI hits £8.6m revenue run rate after record July
MedPal AI (AIM:MPAL), the AI-native pharmacy and digital health group, said its annualised revenue run rate has risen more than 70% in two months to £8.6m, with all three of its revenue streams recording their best month yet in July. Shares climbed 9.677% to 3.4p on the update.
The uniform strength across all three revenue lines suggests the growth is broad-based rather than reliant on a single product or contract, a pattern that should support the case for continued run-rate expansion as the AI-native pharmacy model scales.
