Xp Power Share Discussion Threads

[jon123] 10/5/2018 08:01

the market seems to like it

[villarich] 10/5/2018 07:57

They've paid £31.8m for a company with £6.8m in assets. So subtracting the assets from the total price paid means they've actually paid £25m for the business. Glassman made £2m in profit last year so they've paid a 12.5 multiple of that. I don't think that's too bad actually. Given the synergies in products, and the cost savings from the merger, I would expect that profit figure to increase.

[greenknight1] 10/5/2018 07:40

Acquisition looks a good fit but I think they have paid too much to acquire it.

[chartsworth] 26/4/2018 14:29

Sold today for an 11% profit based on the chart high. Will keep an eye and consider coming back in on a significant dip.

[sogoesit] 20/4/2018 08:53

29p payable today.
16p payable 11/07 (ex-14/06)

[greenknight1] 13/4/2018 19:44

Haha yes stop worrying. Classy company here!

[losos] 13/4/2018 17:53

The company is well funded to make further acquisitions

Since they forecast that XPP wil be in a nett cash position next year then I don't see any great need to make acquisitions. Yes, if a perfect take over target appears, but at a sensible price, always there is the worry that directors will pay too much, and if they have cash in the bank that is even more of a worry. (Maybe I worry too much haha)

[sogoesit] 13/4/2018 10:09

Edison upgrades forecasts today:

"Q118 trading: Revenues and bookings up strongly
XP Power reported revenues of £46.6m in Q118, up 18% y-o-y, up 28% on a constant currency basis and up 17% on a like-for-like basis. Order intake of £51.2m was 9% higher y-o-y (+19% constant currency, +12% like-for-like) and 9% higher q-o-q. Book-to-bill remained strong at 1.1x. Net debt at quarter-end was £6.8m, down from £9.0m at end FY17. The company announced a 16p per share dividend for Q118, in line with our forecast.
Upgrading forecasts
Management’s expectations for full year performance remain unchanged. We have raised our forecasts to reflect the stronger than expected trading in Q1. We lift revenue forecasts by 5.8% for FY18 and FY19, based on constant currency revenue growth of 22% in FY18 (which includes the full year effect of Comdel) and 5% in FY19. This results in an increase in operating profit of 7.5% in FY18 and 7.4% in FY19 and normalised EPS of 7.7% in FY18 and 7.6% in FY19. We forecast that XP will move into a net cash position by the end of FY19, increasing our forecast from £4.1m to £6.2m.
Valuation: Reflects consistently profitable growth
On a P/E basis, XP is trading at a premium to global power converter companies and at a small discount to UK electronics companies, with a dividend yield at the top end of the range. XP generates EBITDA and EBIT margins at the top end of its peer group. We see scope for upgrades to earnings estimates from cross-selling and further market share gains in healthcare. The company is well funded to make further acquisitions, while maintaining its strong operating profitability."

[villarich] 13/4/2018 08:06

Bingo! A nice reaction to a solid statement. More cash to reinvest too!

[fozzie] 13/4/2018 07:30

Steady as she goes, yet another positive trading statement, terrific management.

[sogoesit] 13/4/2018 07:23

The colours continue to fly today too!
Nice update... and increased dividend.

[crazycoops] 12/4/2018 18:45

I just ran a screen on Stockopedia for cos with a market cap grater than £10m and dividend growth streak greater than or equal to 5 years. There are 200 qualifying shares across LSE/AIM. Personally, I prefer to have additional quality criteria which of course, XPP passes with flying colours.

[greenknight1] 12/4/2018 16:41

Breakout today?

[losos] 21/3/2018 16:10

sharw - Thanks for tip on AMO will have a look, not a lot in the kitty right now 'tho haha.

[sharw] 19/3/2018 19:14

Losos - agreed - I originally bought XPP as part of a yield portfolio and it has been one of the best there. Another good one has been Amino(AMO) with 7 years of dividends and at least a 10% increase each time and 10% promised for the current year.

[losos] 19/3/2018 16:43

Johnroger - "How many companies have managed that!"

I am constantly looking for consistent dividend growth investment opportunities. I heartily endorse your statement. The fact is that while you may find a fair number who have not CUT their dividend (RDSB would be one) there are hardly any with a year after year increase.

I don't look at or include companies with less than five years existance.

[valhamos] 02/3/2018 20:47

Annual Results video at:

[johnroger] 01/3/2018 17:49

"Our continued strong financial performance, strong cash flows and confidence in
the Group's long-term prospects have enabled us to increase dividends
consistently over a sustained period. The Board is recommending a final
dividend of 29 pence per share for the fourth quarter of 2017. This dividend
will be payable to members on the register on 16 March 2018 and will be paid on
20 April 2018. When combined with the interim dividends for the previous
quarters, the total dividend for the year will be 78 pence per share (2016: 71
pence), an increase of 10%.

The compound average growth rate of our dividend has been 15% over the last ten
years, demonstrating the Board's commitment to our progressive dividend policy."

How many companies have managed that!

[martinthebrave] 01/3/2018 15:24

XPP Operating Margin is 19.7%, DSCV is 3.42%. No contest IMO.

[villarich] 01/3/2018 13:43

Thanks for the views on DSCV. It came up on a screen I ran last night and looked interesting.

[felix99] 01/3/2018 11:31

agree re the name change - all the trading names are as they were so no idea why they wanted to ditch ACAL name

[felix99] 01/3/2018 11:28

yep got some DSCV as well. Traded it in and out and recently just bought some back.

XPP is just a buy and forget job really but don't expect any fireworks until/ if they say they are trading ahead or something. Nice divi in meantime

[sharw] 01/3/2018 11:16

Silly name change from Acal but DSCV is on the same path as XPP - started as a distributor and then expanded back the chain to take over manufacturers with similarly good financial consequences.

[villarich] 01/3/2018 10:19

Last two posts are spot on. Growth looking healthy. Let's see what happens to the share price over the next 3 months, rather than the last 3 hours.Slightly off topic but same industry. I'm having a look at DSCV. Anyone else on there too?