XP Power Ltd Q3 Trading Update

 
TIDMXPP 
 
11 October 2022 
 
                               XP Power Limited 
 
                 ("XP Power" or "the Group" or the "Company") 
 
                               Q3 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 third quarter ended 30 September 2022. 
 
Trading 
 
Trading in the period improved significantly as expected compared to the prior 
quarter and year-on-year and was in line with our expectations. 
 
The strong momentum in order intake seen in the first half of the year was 
maintained in Q3. Year to date order intake of £294.2 million was up 8% at 
constant currency and continues to be robust in each segment. This provides the 
Group with excellent visibility for the remainder of the year and well into 
2023. Q3 order intake was down 8% year-on-year at constant currency, and up 4% 
as reported, reflecting the strong comparator in Q3 2021 when orders benefited 
from the industry wide increase in lead times. Order intake remains well above 
historic levels highlighting robust end market demand and market share gains in 
recent years. 
 
£ Millions      Q3 2022    Q3 2021      Change        Change in  Like-for-like 
                                                      constant   in constant 
                                                      currency   currency 
 
Orders          101.1      97.2         +4%           -8%        -11% 
 
Year to date    294.2      254.8        +15%          +8%        +2% 
 
Revenue         79.4       61.5         +29%          +15%       +9% 
 
Year to date    203.0      181.3        +12%          +5%        -1% 
 
Book to Bill 
 
Third quarter   1.27       1.58         -0.31 
 
Year to date    1.45       1.41         +0.04 
 
Revenue of £79.4 million in Q3 2022 was up 28% sequentially, and year-on-year 
by 15% on a constant currency basis and 29% as reported, reflecting supply 
chain conditions easing and our efforts to mitigate the challenges. Year to 
date, revenue has grown 5% on a constant currency basis (12% as reported) 
highlighting the improved performance through the third quarter. 
 
The book to bill ratio, which tracks the relationship between orders received 
and completed sales, was 1.27 for the third quarter of 2022. We would expect 
the book to bill to moderate from these exceptional levels in forthcoming 
quarters as supply chain conditions continue to ease and we deliver on that 
exceptional order book. 
 
Financial Position and dividend 
 
Net debt at 30 September 2022 was £118.7 million compared with £102.0 million 
at 30 June 2022. The increase reflects the translation impact of our US dollar 
debt into Sterling given recent FX movements and a further build of inventory. 
We continue to expect net debt/EBITDA to improve as working capital unwinds and 
is supported by a stronger expected revenue performance through the year-end. 
The refinancing of our banking facilities in June 2022 provides the Group with 
significant financial headroom at long maturities. 
 
The Board has declared a dividend for the third quarter of 21.0 pence per share 
(2021: 21.0 pence per share). The ex-dividend date will be 8 December 2022 and 
the dividend will be paid on 18 January 2023 to shareholders on the register at 
the record date of 9 December 2022. The last date for election for the share 
alternative to the dividend under the Company's Dividend Reinvestment Plan is 
28 December 2022. 
 
Outlook 
 
The Board's expectations for the full year are in line with current market 
expectations. We are pleased with the performance in the third quarter and 
while this needs to continue to improve through the final quarter we are better 
demonstrating our potential as supply chain issues continue to improve. Demand 
remains robust and our record order book gives us excellent visibility through 
year-end and into 2023, underpinning our confidence in the Group's future 
prospects. 
 
As announced on 3 October 2022, following receipt of the judgement in the Comet 
legal action the Board is considering next steps and will provide a further 
update as soon as possible. As a reminder the Group provided for the judgement 
at its interim results in August 2022. 
 
Longer term, the Board believes XP Power remains very well positioned to grow 
ahead of its end markets, recover profitability and deliver strong cash 
generation. We have bold ambitions for the Group and the wherewithal to deliver 
this. 
 
Enquiries: 
 
XP Power 
 
Gavin Griggs, Chief Executive Officer                                +44 (0)118 
984 5515 
 
Oskar Zahn, Chief Financial Officer                                   +44 (0) 
118 984 5515 
 
Citigate Dewe 
Rogerson 
 
Kevin Smith/Jos Bieneman                                                 +44 
(0)207 638 9571 
 
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 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

October 11, 2022 02:01 ET (06:01 GMT)