REG-XP Power Ltd: Q1 Trading Update

XP PowerAnnouncement

10/04/2024 07:15

10 April 2024

 

 

XP Power Limited

(`XP Power' or `the Group')

 

Q1 2024 Trading Update

Q1 trading in line with expectations and full year outlook unchanged

 

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 2024.

 

Trading

 

 Q1                  2024   2023   Change   Change in constant currency  
                                                                         
 Order intake (£m)   43.7   61.2   (29)%    (27)%                        
 Revenue (£m)        64.6   77.9   (17)%    (15)%                        
 Book-to-bill        0.68x  0.79x  (0.11)x                               
                                                                         

 

 Trailing 12 months by quarter               Q2 2023  Q3 2023  Q4 2023  Q1 2024  
                                                                                 
 Order intake (£m)                           54.4     44.2     49.0     43.7     
 % change vs prior year - constant currency  (42)%    (54)%    (22)%    (27)%    
                                                                                 
 Revenue (£m)                                82.3     75.1     81.1     64.6     
 % change vs prior year - constant currency  28%      (1)%     (5)%     (15)%    
                                                                                 
 Book-to-bill                                0.66x    0.59x    0.60x    0.68x    
                                                                                 

 

On a constant currency basis, Q1 revenue of £64.6m was 15% lower than last
year. Q1 order intake of £43.7m was 27% lower than last year. Sales and order
intake in the Semiconductor Manufacturing Equipment sector were at a similar
run-rate to that achieved in the second half of 2023. Sales and order intake
in the Healthcare and Industrial Technology sectors slowed as customers
continued to destock.

 

Our order book at the end of Q1 was c.£171m.

 

Financial Position

 

Net debt at 31 March 2024 was £103.4m, £9.3m lower than at 31 December 2023.

 

The Group generated strong cash flow from ongoing inventory reduction and cash
preservation measures. We continue to expect the Group's net debt to peak
around the mid-year point. The Group's previously announced actions to reduce
costs and borrowings are on track and are delivering the benefits expected.

 

Outlook

 

Our full year expectations are unchanged. As expected, revenue in Q2 is likely
to be slightly lower than Q1 due to ongoing customer destocking, and we
continue to expect trading to improve during 2024 as channel stock levels
reach equilibrium and as demand for Semiconductor Manufacturing Equipment
begins to increase. Order intake in Q2 will provide greater clarity on the
timing and trajectory of this improvement.

 

We are confident that our market positions remain strong and that the Group is
well positioned to prosper as our key markets resume their trajectory of
healthy long-term growth.

 

We will announce our Interim Results on 6 August 2024.

 

Enquiries:

 

 XP Power                                                    
 Gavin Griggs, Chief Executive Officer  +44 (0)118 984 5515  
 Matt Webb, Chief Financial Officer     +44 (0)118 984 5515  
                                                             
 Citigate Dewe Rogerson                                      
 Kevin Smith/Lucy Gibbs                 +44 (0)207 638 9571  
  
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 Semiconductor Manufacturing
Equipment (circa 32% of sales), Industrial Technology (circa 43% of sales) and
Healthcare (circa 25% 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 All Share Index. XP
Power serves a global blue-chip customer base from over 30 locations in
Europe, North America, and Asia.

 

For further information, please visit www.xppowerplc.com.



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