Xp Power Share Discussion Threads

[pireric] 28/2/2022 14:23

Thats the point I'm making; theres a huge difference between the capitalised R&D/software intangible capex charge and the amortisation charge, such that H1 eps would have been 20% lower if the two numbers were equal.

Eric

[valhamos] 28/2/2022 11:35

Looks reasonable to me. You have to make sure you don't follow dodgy metrics like EBITDA which tries to pretend that the amortisation of these development costs is not a business cost. There is no boosting of eps if (and I agree that's a big if) the company's development spend is in a steady state such that amortisation would approximate the P&L charge if there were no capitalisation.

The only issue I'm seeing with cashflow is the impact of the need to build stocks over the last year or two to cope with supply chain issues for critical parts/chips.

[pireric] 28/2/2022 10:25

How does everyone view the rather high capitalised R&D and software costs that XPP seems to churn through most years. i calculate that this accounting policy (rather than expensing these costs), is boosting EPS by about 20% in H1 2021 so very material. Explains the relatively poor free cash flow conversion. Thoughts from those who know the stock well appreciated

Eric

[mjneish] 02/2/2022 21:58

Edison Group have updated their coverage after these acquisitions.

[valhamos] 31/1/2022 09:42

Acquisitions announced today look a good fit (highly complementary) in the high voltage sector with customers in the semiconductor equipment, advanced technology, space and R&D businesses. Earning enhancing in 2022.

[mjneish] 11/1/2022 11:00

Just given these a peep after today's trading statement.

Operating profit modestly below analyst expectations. Let's call it £44 million (analyst estimates are £46-48 million).

Keeping finance charges the same as last year, and raising the tax charge to £7 million (pure guess, up from £4 million last year), they end up with a profit after tax of £35.3 million.

This is an EPS of just short of £1.80, giving a forward PE ratio of 27.2 at the current price.

Does this represent good value?

If someone could suggest a better figure to input than my completely arbitrary £7 million, please do so. No idea how this works. It wouldn't change the forward PE ratio much anyway.

[valhamos] 11/1/2022 10:05

Current year "modestly below" is a non issue, as the market quickly realised - XPP guided ahead at the half year stage so this merely brings it back slightly. 2021 revenue extremely good at 10% ahead in constant currency considering 2020 was boosted by covid impacts with the medical sector.

[zipstuck] 11/1/2022 09:44

Looking forward to a strong update for this year with results on March 1sr

[redartbmud] 11/1/2022 07:54

Hit yesterday in the general sell off, so any further weakness may be limited.
It looks like they have been impacted by supply disruption and general logistics resulting from the covid panic, but longer term the signs are good.

[18bt] 11/1/2022 07:41

Interesting to see whether this will be hit this morning. I'm looking for a potentila re-entry point as I ike the fundamentals of this business and sold out in Aug 2020 on valuation concerns.

[vas007] 29/11/2021 14:34

Why the down ward direction when XPP will be Ex div soon?.

[vas007] 25/11/2021 12:05

I would like to trade but need a reasonable support figure.

[nerja] 29/10/2021 15:49

Interactive investors winter list,

Lio, Safe, Xpp, Hlma, Adm, Synt, SXs, Hils,

It’s performed very well over the last 8 winters

[valhamos] 11/10/2021 19:03

Also revenue YTD at £181.4m is up on the pre-pandemic 2019 period (£152.7m) - a not too shabby 9% CAGR, considering adverse currency impact.

[suetballs] 11/10/2021 18:34

Order book looking good in today's trading update.
Suet

[tomps2] 30/9/2021 08:51

Iain Staples mentions Xp Power (XPP) at 9m58s in the latest PIWORLD interview

Watch the video here:

Or listen to the podcast here:

[buttcoin] 03/8/2021 07:52

fully priced

[phi2001] 02/8/2021 18:19

Just as well the half-year report wasn't any better - the share price might have nose-dived!

[valhamos] 02/8/2021 09:31

Net debt increasing by £3m ?

"investing in inventory to support customer demand and secure supply of important components with the increasing lead times in the market."

"The Group returned £11.1 million (H1 2020: £3.8 million) to shareholders in the form of dividends during the first half of 2021"

So cash from operating activities £20m less cash for investment £10m and for financing £15m leads to an increase in net debt.

But £20m net debt, - 12% gearing with equity at £167m, should not be a concern.

[jon123] 02/8/2021 09:04

I liked most of the bits the only thing I disliked was the net going by 3 mil and no explanation as too why

[valhamos] 02/8/2021 09:04

Good to know the Vietnam factory seems to be operating normally within the recent lockdown restrictions.

[capitalist] 02/8/2021 07:44

Half year report out. I particularly like this bit: "The Board expects FY 2021 trading to be modestly ahead of analysts’ consensus expectations, while remaining mindful of certain headwinds."

[suetballs] 05/7/2021 13:24

Rising nicely - £57 breached.
Suet

[apad] 19/4/2021 07:53

AUG 20 Peters (XPP FOUNDER in 1988) sold £4.3m worth of stock at a price of £42.72 per share.

Apr 21 sold at £50.14 pence 250,000 shares

apad

[don carter] 13/4/2021 10:35

Good rise on results today. Results seem solid enough to me. I like this company as a LTBH; it seems solid with a good management.