XPP.GB XP Power Ltd

 
TIDMXPP 
 
13 April 2021 
 
                               XP Power Limited 
                  ("XP Power", "the Group" or "the Company") 
 
                               Q1 Trading Update 
 
XP Power, one of the world's leading developers and manufacturers of critical 
power control components to the electronics industry, is today issuing a 
trading update for the first quarter ended 31 March 2021. 
 
Trading 
 
Trading in the first quarter of 2021 has been in line with the Board's 
expectations. The Group made a good start to the year with order intake up 7% 
on Q1 2020 on a constant currency basis and 1% ahead as reported. This 
performance was driven by the continued strength in the Semiconductor 
Manufacturing Equipment sector and a recovery in the Industrial Technology 
sector. As expected, Healthcare orders decreased compared to the prior year, 
due to the exceptional COVID-19 related orders received in Q1 2020 not 
repeating. 
 
Revenue in the first quarter of 2021 was up 23% year-on-year on a constant 
currency basis and 16% ahead as reported. The strong year-on-year revenue 
growth partially reflects the COVID-19 related extended shutdown of our 
manufacturing facility in China and the associated supply chain challenges in 
the prior year. 
 
The book to bill ratio, which tracks the relationship between orders received 
and completed sales, and which is an indicator of future revenue growth, was 
1.29 for the first quarter of 2021 (Q1 2020: 1.49) driven particularly by the 
demand from Semiconductor Manufacturing Equipment and Industrial Technology 
customers. 
 
£ Millions  Q1 2021  Q1 2020  Q4 2020         Q1 2020              Q4 2020 
 
                                        Change    Change in   Change   Change in 
                                                  constant             constant 
                                                  currency             currency 
 
Orders        73.7     73.1     55.9      1%         7%         32%       38% 
 
Revenue       57.1     49.1     59.2      16%        23%        -3%       1% 
 
Book to       1.29     1.49     0.94     -0.20                 0.35 
Bill 
 
 
Financial Position and dividend 
 
Net debt at 31 March 2021 was £18.4 million, compared with £17.9 million at 31 
December 2020. The Group will continue its disciplined approach to capital 
allocation, prioritising a strong balance sheet and the flexibility that this 
provides. 
 
The Board has recommended a dividend for the first quarter of 18 pence per 
share, which will be paid on 14 July 2021 to shareholders on the register at 18 
June 2021 (2020: nil pence per share). 
 
Outlook 
 
The Group is encouraged by its order intake for the first quarter, providing a 
strong order book and underpins our confidence in delivering underlying revenue 
growth for the full year. Overall, we remain positive about the Group's 
prospects but are mindful of the potential impact from foreign exchange 
movements and the ongoing COVID-19 related uncertainty. 
 
Longer term, the Board believes XP Power to be very well positioned to grow 
ahead of its end markets, supported by its strong cash generation and a robust 
balance sheet. 
 
 
Enquiries: 
 
XP Power 
Gavin Griggs, Chief Executive Officer                  +44 (0)118 976 5155 
Johan Olivier, Acting Chief Financial Officer        +44 (0)118 976 5155 
 
Citigate Dewe Rogerson 
Kevin Smith/Jos Bieneman                                  +44 (0)207 638 9571 
 
 
Note to editors 
 
XP Power designs and manufactures power controllers, the essential hardware 
component in every piece of electrical equipment that converts power from the 
electricity grid into the right form for equipment to function. Power 
controllers are critical for optimal delivery in challenging environments but 
are a small part of the overall customer product cost. 
 
XP Power typically designs power control solutions into the end products of 
major blue-chip OEMs, with a focus on the Industrial Technology (circa 40% of 
sales), Healthcare (circa 30% sales) and Semiconductor Manufacturing Equipment 
(circa 30% of sales) sectors. Once designed into a programme, XP Power has a 
revenue annuity over the life cycle of the customer's product which is 
typically five to seven years depending on the industry sector. 
 
XP Power has invested in research and development and its own manufacturing 
facilities in China, North America, and Vietnam, to develop a range of tailored 
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 Power is a constituent of the FTSE 250 Index. XP Power 
serves a global blue-chip customer base from 29 locations in Europe, North 
America, and Asia. 
 
For further information, please visit xppowerplc.com 
 
 
 
END 
 
 

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