XP Power Ltd Trading Statement
12 January 2018 - 6:00PM
UK Regulatory
TIDMXPP
12 January 2018
XP Power Limited
("XP Power" or the "Company")
Trading Update
XP Power, one of the world's leading developers and manufacturers of critical
power control components for the electronics industry, is today issuing a
trading update for the fourth quarter ended 31 December 2017.
Trading
The Company had a good finish to the year, in line with the Board's
expectations, as the strong order intake reported in the third quarter drove
robust revenue growth in the final quarter. Encouragingly, the momentum in
order intake continued into the fourth quarter and geographically, both order
intake and revenue growth has been strong across all regions.
Order intake in the fourth quarter of 2017 was GBP46.8 million, 24% ahead of Q4
2016 on a reported basis or 32% ahead in constant currency. This resulted in
order intake for the twelve months ended 31 December 2017 being GBP184.3 million,
an increase of 38% over 2016 on a reported basis, or 31% in constant currency.
Revenue in the fourth quarter of 2017 was GBP43.2 million, 16% ahead of Q4 2016
on a reported basis, or 23% in constant currency. Revenue for the twelve
months ended 31 December 2017 was GBP167.0 million, an increase of 29% over 2016,
or 22% in constant currency.
The trading performance of Comdel was in line with the Board's pre-acquisition
expectations, with orders in the fourth quarter of GBP5.8m, 101% ahead of Q4 2016
on a reported basis, or 114% in constant currency. Comdel reported fourth
quarter revenue of GBP4.1m, 30% ahead of Q4 2016 on a reported basis, or 30% in
constant currency. Integration of the Comdel business into XP Power is
proceeding as planned. Orders and revenue for 2017 represent a full year book
to bill ratio of 1.11 (2016: 1.03) reflecting the strength of customer demand
across the year.
Financial Position
Following the acquisition of Comdel on 29 September 2017 for US$23.0 million (GBP
17.0 million), net debt at 31 December 2017 was GBP10.1 million, compared with a
net cash position of GBP3.6 million at 31 December 2016.
Dividend
A dividend of 18 pence per share for the third quarter was paid on 11 January
2018, to shareholders on the register at 15 December 2017.
The recommended dividend for the fourth quarter of 2017 will be announced with
the 2017 final results on 1 March 2018 but is not expected to be less than 28
pence per share, representing a minimum total dividend of 77 pence per share
for 2017, an increase of 8% over the total dividend of 71 pence per share paid
for 2016.
Outlook
We are encouraged by the continued strong order intake experienced across the
business during the second half of 2017 and the overall book to bill level for
the year. We enter 2018 with positive momentum and therefore expect to grow
orders and revenue in 2018 above that in 2017.
Enquiries:
XP Power
Duncan Penny
Chief Executive Officer
+44 (0)118 976 5086
Gavin Griggs
Chief Financial Officer
+44 (0)118 976 5154
Citigate Dewe Rogerson
+44 (0)20 7638 9571
Kevin Smith/Jos Bieneman
Note to editors
XP designs and manufactures power controllers, the essential sub assembly in
every piece of electrical equipment that converts the power from the
electricity grid into the right form for the equipment to function. XP
typically designs in power control solutions into the end products of major
blue chip OEMs, with a focus on the industrial (circa 45% of sales), healthcare
(circa 30% sales) and technology (circa 25% of sales) sectors. Once designed
into a program, XP has a revenue annuity over the life cycle of the customer's
product which is typically 5 to 7 years depending on the industry sector. XP
has invested in research and development and its own manufacturing facilities
in China, North America and Vietnam, to develop a range of up to date products
based on its own intellectual property that provide its customers with
significantly improved functionality and efficiency. Headquartered in Singapore
and listed on the Main Market of the London Stock Exchange since 2000, XP
serves a global blue chip customer base from 27 locations in Asia, Europe and
North America.
END
(END) Dow Jones Newswires
January 12, 2018 02:00 ET (07:00 GMT)
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