XP Power Ltd Trading Statement

 
TIDMXPP 
 
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 GBP123.9 million 
(2016: GBP92.6 million). In constant currency the increase in revenues was 21%. 
 
Order intake for the nine months ended 30 September 2017 was strong at GBP137.5 
million (2016: GBP95.8 million) which was 44% higher than the prior year. In 
constant currency this was an increase of 30%. 
 
Our third quarter order intake was GBP44.1 million (2016: GBP34.2 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 GBP10.8 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 GBP8.0 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                [phone] 
 
Jonathan Rhodes, Finance Director 
 
[phone] 
 
 
Citigate Dewe Rogerson                         [phone] 
 
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. 
 
 
 
END 
 

(END) Dow Jones Newswires

October 09, 2017 02:00 ET (06:00 GMT)