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XP Power Limited  -  XPP   

Trading Statement

Released 07:00 08-Oct-2018

Trading Statement

                                                               8 October 2018

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 a trading update for the quarter ended 30 September 2018.

Trading

Order intake for the nine months ended 30 September 2018 was robust at £153.3 million (2017: £137.5 million) which was 11% higher than the prior year on a reported basis. In constant currency this was an increase of 18%. On a “like for like” basis, removing currency effects and the impact of the Comdel and Glassman acquisitions, order intake increased by 8%.

Trading in the third quarter has also been robust.  Revenues for the nine months ended 30 September 2018 increased by 18% over the prior year to £146.1 million (2017: £123.9 million) on a reported basis. In constant currency the increase in revenues was 24%. On a “like for like” basis, removing currency effects and the impact of the Comdel and Glassman acquisitions, revenues increased by 11%.

In our interim results on 30 July 2018, we highlighted shortages of some components, together with extended lead times.  We have increased our inventories to ensure we are able to meet customer demand in the fourth quarter and into 2019.  We expect the inventory levels to return to more normal levels over the next 6 to 9 months.

Financial Position


Net debt was £49.3 million at 30 September 2018 compared to £46.5 million at 30 June 2018.  

Dividend

A dividend for the third quarter of 19 pence per share will be paid on 10 January 2019 to shareholders on the register at 14 December 2018. This brings the total dividend for the first three quarters of 2018 to 52 pence per share, representing a 6% increase over the 49 pence per share paid in respect of the first three quarters of 2017.

Outlook
 

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. Our addressable market has been significantly increased due to the acquisitions of Comdel and Glassman which bring Radio Frequency power and high power/high voltage products, respectively, into our ranges. Our sales team are already finding new opportunities for these products.

Order intake remains healthy, although the rate of growth has moderated slightly during the period.  Production volumes in China and Vietnam remain robust and we are encouraged by our design win pipeline and overall momentum across the business. The Board anticipates the Group’s performance for the full year will be in line with its current expectations as outlined at the time of the Group’s interim results on 30 July 2018.

XP Power will issue a trading update for the year to 31 December 2018 on 14 January 2019.

- Ends -

XP Power                                                                       

Duncan Penny, Chief Executive         +44 (0)118 984 5515

Gavin Griggs, Chief Financial Officer +44 (0)118 984 5515

Citigate Dewe Rogerson              +44(0)20 7638 9571

Kevin Smith/Jos Bieneman/Sam Stibbs  

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.

XP Power typically designs power control solutions into the end products of major blue-chip OEMs, with a focus on the industrial (circa 42% of sales), healthcare (circa 22% of sales), semiconductor manufacturing (circa 26% of sales) and technology (circa 10% 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 5 to 7 years depending on the industry sector. 

XP Power 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 Power serves a global blue-chip customer base from 29 locations in Europe, North America and Asia. 

For further information, please visit xppower.com


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Trading Statement - RNS