REG-XP Power Ltd: Q3 Trading Update

XP PowerAnnouncement

11/10/2021 07:05

11 October 2021

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 2021.

Trading

The strong momentum in order intake seen in the first half of the year
accelerated in Q3, with orders up 87% at constant currency, and 73% as
reported, to £97.2 million. Order growth was driven by continued strength in
the Semiconductor Manufacturing Equipment sector, the ongoing recovery in
Industrial Technology, and a pick-up in Healthcare, where third quarter orders
were 70% above 2019 levels. The extension of lead times to customers has
brought orders forward as customers seek to secure supply.  Year to date
order intake was up 37% at constant currency. The Group enters the final
quarter of the year with a very strong order backlog position partially as a
result of lead times that have continued to extend.

As expected, revenue of £61.6 million in Q3 2021 was down year-on-year, 5% on
a constant currency basis and 11% as reported, as the exceptional COVID-19
related Healthcare revenue in the prior year was not repeated. Year to date,
revenue has grown 12% on a constant currency basis (4% as reported) mostly
driven by the Semiconductor Manufacturing Equipment sector.

The book to bill ratio, which tracks the relationship between orders received
and completed sales, was 1.58 for the third quarter of 2021 (Q3 2020: 0.82).

 £ Millions     Q3 2021  Q3 2020  Change  Change in constant currency  
                                                                       
 Orders         97.2     56.3     +73%    +87%                         
 Year to date   254.7    202.1    +26%    +37%                         
                                                                       
 Revenue        61.6     69.0     -11%    -5%                          
 Year to date   181.4    174.1    +4%     +12%                         
                                                                       
 Book to Bill                                                          
 Third quarter  1.58     0.82     +0.76                                
 Year to date   1.40     1.16     +0.24                                
                                                                       

Financial Position and dividend

Net debt at 30 September 2021 was £25.2 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 declared a dividend for the third quarter of 21.0 pence per
share (2020: 20.0 pence per share). The ex-dividend date will be 9 December
2021 and the dividend will be paid on 17 January 2022 to shareholders on the
register at the record date of 10 December 2021. The last date for election
for the share alternative to the dividend under the Company’s Dividend
Reinvestment Plan is 24 December 2021.

Outlook

The Board’s expectations for the full year remain in line with current
market expectations. While our order book provides us with excellent
visibility well into 2022, we continue to monitor closely the impact of the
current uncertainties in global supply chains, including shortages of key
components, ongoing COVID-19 challenges and freight capacity constraints, with
associated increased costs.

Longer term, the Board believes XP Power remains very well positioned to grow
ahead of its end markets, supported by its strong cash generation and robust
balance sheet.

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 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 xppower.com



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