9 October 2017
XP Power Limited
(“XP Power” or “the Group”)
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 its trading update for the
quarter ended 30 September 2017.
Trading
Trading in the third quarter has been robust. Revenues for
the nine months ended 30 September
2017 increased by 34% over the prior year to £123.9 million
(2016: £92.6 million). In constant currency the increase in
revenues was 21%.
Order intake for the nine months ended 30
September 2017 was strong at £137.5 million (2016: £95.8
million) which was 44% higher than the prior year. In constant
currency this was an increase of 30%.
Our third quarter order intake was £44.1 million (2016: £34.2
million). The momentum in our order intake is encouraging,
particularly the continued growth we are experiencing in our North
American markets.
Financial Position
The Group entered into a new revolving credit facility (“RCF”) at
the end of the quarter of US$40.0
million with a US$20.0 million
additional accordion option. The new facility is in place to assist
the Group’s acquisition strategy.
Net debt was £10.8 million at 30
September 2017 following the draw down on the Group’s new
RCF to finance the US$23 million
acquisition of Comdel which closed on 29
September 2017. Net cash at 30 June
2017 was £8.0 million.
Dividend
A dividend for the third quarter of 18
pence per share will be paid on 11
January 2018 to shareholders on the register at 15 December 2017. This brings the total dividend
for the first three quarters of 2017 to 49
pence per share, representing a 9% increase over the
45 pence per share paid in respect of
the first three quarters of 2016.
Outlook
We are encouraged by another quarter of strong order intake with
our end markets remaining buoyant.
The Group believes it is continuing to take market share as its
portfolio of industry-leading power technology products is
increasingly designed-in to new equipment by our target customers.
These design wins will translate in to orders as our customers’
projects move to production phase over the coming years.
The Board now anticipates the Group’s performance for the full
year will be ahead of its previous expectations outlined at the
time of the Group’s interim results on 31
July 2017.
Furthermore, the acquisition of the business and assets of
Comdel just before the period end was the latest step in the
Group’s strategy of acquiring complementary product
capabilities. The acquisition will enable XP Power to provide
its existing customers with a comprehensive product offering in
Radio Frequency power supplies, increasing our addressable market
and further expanding our revenue base. The Group is
continuing its search for further suitable M&A
opportunities.
XP Power will issue a trading update for the year to
31 December 2017 on 12 January 2018.
- Ends -
Enquiries:
XP
Power
Duncan Penny, Chief
Executive
+44 (0)7776 178 018
Jonathan Rhodes, Finance
Director
+44 (0)118 976
5074
Citigate Dewe
Rogerson
+44 (0)20 7638 9571
Kevin Smith/Jos Bieneman
Note to editors
XP designs and manufactures power controllers, the essential
hardware component 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
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 serves a global blue chip customer base from 29 locations in
Europe, North America and Asia.