REG-XP Power Ltd: Q1 Trading update

XP PowerAnnouncement

13/04/2021 07:05

 13 April 2021

XP Power Limited
(“XP Power”, “the Group” or “the Company”)

Q1 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 first quarter ended 31 March 2021.

Trading

Trading in the first quarter of 2021 has been in line with the Board’s
expectations. The Group made a good start to the year with order intake up 7%
on Q1 2020 on a constant currency basis and 1% ahead as reported. This
performance was driven by the continued strength in the Semiconductor
Manufacturing Equipment sector and a recovery in the Industrial Technology
sector. As expected, Healthcare orders decreased compared to the prior year,
due to the exceptional COVID-19 related orders received in Q1 2020 not
repeating.

Revenue in the first quarter of 2021 was up 23% year-on-year on a constant
currency basis and 16% ahead as reported. The strong year-on-year revenue
growth partially reflects the COVID-19 related extended shutdown of our
manufacturing facility in China and the associated supply chain challenges in
the prior year.

The book to bill ratio, which tracks the relationship between orders received
and completed sales, and which is an indicator of future revenue growth, was
1.29 for the first quarter of 2021 (Q1 2020: 1.49) driven particularly by the
demand from Semiconductor Manufacturing Equipment and Industrial Technology
customers.

 £ Millions    Q1 2021  Q1 2020            Q4 2020               Q1 2020                  Q4 2020               
                Change           Change in constant currency         Change        Change in constant currency  
 Orders          73.7     73.1               55.9               1%     7%     32%              38%              
                                                                                                                
 Revenue         57.1     49.1               59.2              16%     23%    -3%               1%              
                                                                                                                
 Book to Bill    1.29     1.49               0.94             -0.20          0.35                               
                                                                                                                

Financial Position and dividend

Net debt at 31 March 2021 was £18.4 million, compared with £17.9 million at
31 December 2020. The Group will continue its disciplined approach to capital
allocation, prioritising a strong balance sheet and the flexibility that this
provides.

The Board has recommended a dividend for the first quarter of 18 pence per
share, which will be paid on 14 July 2021 to shareholders on the register at
18 June 2021 (2020: nil pence per share).

Outlook

The Group is encouraged by its order intake for the first quarter, providing a
strong order book and underpins our confidence in delivering underlying
revenue growth for the full year. Overall, we remain positive about the
Group’s prospects but are mindful of the potential impact from foreign
exchange movements and the ongoing COVID-19 related uncertainty.

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. 

Enquiries:

XP Power
Gavin Griggs, Chief Executive Officer                  +44
(0)118 976 5155
Johan Olivier, Acting Chief Financial Officer        +44 (0)118 976
5155

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. Power
controllers are critical for optimal delivery in challenging environments but
are a small part of the overall customer product cost.

XP Power typically designs power control solutions into the end products of
major blue-chip OEMs, with a focus on the Industrial Technology (circa 40% of
sales), Healthcare (circa 30% sales) and Semiconductor Manufacturing Equipment
(circa 30% 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 five to seven years depending on the industry sector. 

XP Power has invested in research and development and its own manufacturing
facilities in China, North America, 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 xppowerplc.com



Copyright (c) 2021 PR Newswire Association,LLC. All Rights Reserved