XP Power Ltd Trading Update

 
TIDMXPP 
 
11 January 2022 
 
                               XP Power Limited 
 
                   ("XP Power" the "Group" or the "Company") 
 
Q4 and Full Year 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 fourth quarter ended 31 December 2021. 
 
Trading 
 
The strong order intake momentum seen throughout 2021 continued through Q4, 
with orders up 65% at constant currency and 58% as reported to £88.6 million 
with a book to bill of 1.51x. All sectors saw robust order intake growth, with 
orders well above both 2020 and 2019 levels, and above our expectations. Full 
year order intake was up 43% at constant currency and the Group enters 2022 
with a record order book. 
 
Revenue in Q4 was £58.8 million, up 4% year-on-year (down 1% as reported), 
slightly down on the Board's expectations as the previously announced supply 
chain constraints, specifically the availability of key components and freight 
capacity impacted customer deliveries towards the end of the year. As a result, 
2021 adjusted operating profit is anticipated to be modestly below the lower 
end of current market expectations1. 
 
For the 2021 financial year as a whole, revenue has grown 10% on a constant 
currency basis (3% as reported) to £240.2 million against what was a tough 
prior year comparator which benefitted from £15-20 million of healthcare 
equipment related sales directly linked to COVID-19. The increase in FY 2021 
was primarily driven by the Semiconductor Manufacturing Equipment sector. 
 
1 The current range of analyst expectations for adjusted operating profit for 
the year ended 31 December 2021 is £46 million to £48 million 
 
£ Millions           Q4 2021  Q4 2020    Change Change in 
                                                 constant 
                                                 currency 
 
Orders                  88.6     55.9       58%       65% 
 
Year to date           343.4    258.0       33%       43% 
 
Revenue                 58.8     59.3       -1%        4% 
 
Year to date           240.2    233.3        3%       10% 
 
Book to Bill 
 
Fourth quarter          1.51     0.94      0.57 
 
Year to date            1.43     1.11      0.32 
 
Financial Position and dividend 
 
Net debt at 31 December 2021 was £24.7 million, compared with £17.9 million at 
31 December 2020, reflecting higher working capital to support the record order 
book and future revenue growth. 
 
The recommended dividend for the fourth quarter of 2021 will be announced with 
the 2021 Final Results on 1 March 2022 but is not expected to be less than 36 
pence per share, representing a minimum total dividend of 94 pence per share 
for the year. 
 
Outlook 
 
The Group starts the new financial year with a record order book, which 
provides excellent visibility through 2022. While we remain mindful of the 
ongoing uncertainties in respect of component supply and freight capacity and 
costs and are continuing to monitor the situation carefully, we are optimistic 
on the Group's prospects for the year ahead and plan to invest in new 
manufacturing capacity in 2022 to support the future growth of the Group. 
 
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. 
 
The Group will report its FY 2021 results on the 1 March 2022. 
 
Enquiries: 
 
XP 
Power 
 
Gavin Griggs, Chief Executive 
Officer                                                         [phone] 
5515 
 
Oskar Zahn, Chief Financial 
Officer                                                            +44 (0)118 
984 5515 
 
Citigate Dewe 
Rogerson 
 
Kevin Smith/Jos 
Bieneman 
[phone] 
 
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 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 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 xppower.com 
 
 
 
END 
 
 

(END) Dow Jones Newswires

January 11, 2022 02:00 ET (07:00 GMT)