XP Power Ltd Trading Statement

 
TIDMXPP 
 
8 October 2018 
 
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 a 
trading update for the quarter ended 30 September 2018. 
 
Trading 
 
Order intake for the nine months ended 30 September 2018 was robust at GBP153.3 
million (2017: GBP137.5 million) which was 11% higher than the prior year on a 
reported basis. In constant currency this was an increase of 18%. On a "like 
for like" basis, removing currency effects and the impact of the Comdel and 
Glassman acquisitions, order intake increased by 8%. 
 
Trading in the third quarter has also been robust.  Revenues for the nine 
months ended 30 September 2018 increased by 18% over the prior year to GBP146.1 
million (2017: GBP123.9 million) on a reported basis. In constant currency the 
increase in revenues was 24%. On a "like for like" basis, removing currency 
effects and the impact of the Comdel and Glassman acquisitions, revenues 
increased by 11%. 
 
In our interim results on 30 July 2018, we highlighted shortages of some 
components, together with extended lead times.  We have increased our 
inventories to ensure we are able to meet customer demand in the fourth quarter 
and into 2019.  We expect the inventory levels to return to more normal levels 
over the next 6 to 9 months. 
 
Financial Position 
 
 
Net debt was GBP49.3 million at 30 September 2018 compared to GBP46.5 million at 30 
June 2018. 
 
Dividend 
 
A dividend for the third quarter of 19 pence per share will be paid on 10 
January 2019 to shareholders on the register at 14 December 2018. This brings 
the total dividend for the first three quarters of 2018 to 52 pence per share, 
representing a 6% increase over the 49 pence per share paid in respect of the 
first three quarters of 2017. 
 
Outlook 
 
 
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. Our addressable market has been significantly increased due to the 
acquisitions of Comdel and Glassman which bring Radio Frequency power and high 
power/high voltage products, respectively, into our ranges. Our sales team are 
already finding new opportunities for these products. 
 
Order intake remains healthy, although the rate of growth has moderated 
slightly during the period.  Production volumes in China and Vietnam remain 
robust and we are encouraged by our design win pipeline and overall momentum 
across the business. The Board anticipates the Group's performance for the full 
year will be in line with its current expectations as outlined at the time of 
the Group's interim results on 30 July 2018. 
 
XP Power will issue a trading update for the year to 31 December 2018 on 14 
January 2019. 
 
                                   - Ends - 
 
XP Power 
 
Duncan Penny, Chief Executive         [phone] 
 
Gavin Griggs, Chief Financial Officer [phone] 
 
Citigate Dewe Rogerson              [phone] 
 
Kevin Smith/Jos Bieneman/Sam Stibbs 
 
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 typically designs power control solutions into the end products of 
major blue-chip OEMs, with a focus on the industrial (circa 42% of sales), 
healthcare (circa 22% of sales), semiconductor manufacturing (circa 26% of 
sales) and technology (circa 10% of sales) sectors.  Once designed into a 
programme, XP Power 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 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 08, 2018 02:00 ET (06:00 GMT)