Power Probe gives upbeat outlook as FY revenues climb

(Sharecast News) - Automotive electrical diagnostic tools group Power Probe reported a drop in profits but a big jump in revenues in its maiden annual results as a listed company on Monday, but painted a positive outlook on the back of new product launches, partnerships and manufacturing expansion. The company, which debuted in London in December, said revenues were up 25.7% at $39.4m, helped by new product launches and strong contributions from products launched over the past three yars.

However, pre-tax profit slumped 41% to $4.54m as selling and marketing expenses jumped 27.2% to $3.92m and general and administration expenses surged 138.4% to $6.70m due to the IPO.

Nevertheless, adjusted EBITDA rose by 6.7% to $9.0m, though upside was limited by a 4.5 percentage point drop in gross margin to 40.0%, impacted by product mix and lower margins across the private brands business unit.

"The group is strategically moving away from this legacy business as we focus on developing new, higher margin revenue opportunities in private brands. New product introductions continue to be a source of higher margin revenue, and we expect to benefit from this as our pipeline of new Power Probe branded products are released to the market," the company said.

For 2026, chief executive Chema Garcia Riera said trading over the first quarter was "encouraging", with four new products launched so far this year and new manufacturers and dealerships signing up, including GM and Stellantis, while a new distribution centre in Nuneaton opened last year is "building strong customer and sales momentum".

The launch of a new manufacturing facility in the US is also expected to increase operational flexibility, drive its innovation pipeline and expand production closer to the key US market, Riera said.

Meanwhile, the conflict in the Middle East has not materially affected supply chains thus far, since the seaborne import of products from Asia into the US and Europe is reliant on the Pacific Ocean and Panama Canal.

"2025 marked a pivotal year for Power Probe and we enter 2026 with continued momentum. Supported by strong structural market growth drivers, our IPO has provided an expanded platform from which we are well positioned to continue to deliver long-term, sustainable growth," he said.

The stock was up 1.1% at 74.8p by 0900 BST.

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