REG-XP Power Ltd: Trading Statement <Origin Href="QuoteRef">XPP.L</Origin>

XP PowerAnnouncement

09/10/2017 07:05

                                                                           
9 October 2017

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 its trading update for the quarter ended 30 September 2017.

Trading

Trading in the third quarter has been robust.  Revenues for the nine months
ended 30 September 2017 increased by 34% over the prior year to £123.9
million (2016: £92.6 million). In constant currency the increase in revenues
was 21%.  

Order intake for the nine months ended 30 September 2017 was strong at £137.5
million (2016: £95.8 million) which was 44% higher than the prior year. In
constant currency this was an increase of 30%.

Our third quarter order intake was £44.1 million (2016: £34.2 million). The
momentum in our order intake is encouraging, particularly the continued growth
we are experiencing in our North American markets.   

Financial Position

The Group entered into a new revolving credit facility (“RCF”) at the end
of the quarter of US$40.0 million with a US$20.0 million additional accordion
option. The new facility is in place to assist the Group’s acquisition
strategy. 

Net debt was £10.8 million at 30 September 2017 following the draw down on
the Group’s new RCF to finance the US$23 million acquisition of Comdel which
closed on 29 September 2017. Net cash at 30 June 2017 was £8.0 million.  

Dividend

A dividend for the third quarter of 18 pence per share will be paid on 11
January 2018 to shareholders on the register at 15 December 2017. This brings
the total dividend for the first three quarters of 2017 to 49 pence per share,
representing a 9% increase over the 45 pence per share paid in respect of the
first three quarters of 2016.

Outlook
 

We are encouraged by another quarter of strong order intake with our end
markets remaining buoyant.

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. 

The Board now anticipates the Group’s performance for the full year will be
ahead of its previous expectations outlined at the time of the Group’s
interim results on 31 July 2017.

Furthermore, the acquisition of the business and assets of Comdel just before
the period end was the latest step in the Group’s strategy of acquiring
complementary product capabilities.  The acquisition will enable XP Power to
provide its existing customers with a comprehensive product offering in Radio
Frequency power supplies, increasing our addressable market and further
expanding our revenue base.  The Group is continuing its search for further
suitable M&A opportunities.

XP Power will issue a trading update for the year to 31 December 2017 on 12
January 2018.

- Ends -

Enquiries:

XP
Power                                                                                                    
                                                                                                    
                                                                                                    

Duncan Penny, Chief Executive                +44 (0)7776 178
018

Jonathan Rhodes, Finance
Director                                                                                              
+44 (0)118 976
5074                                                                         

Citigate Dewe Rogerson                         +44
(0)20 7638 9571

Kevin Smith/Jos Bieneman

Note to editors

XP designs and manufactures power controllers, the essential hardware
component in every piece of electrical equipment that converts the power from
the electricity grid into the right form for the equipment to function.

XP typically designs in power control solutions into the end products of major
blue chip OEMs, with a focus on the industrial (circa 45% of sales),
healthcare (circa 30% sales) and technology (circa 25% of sales) sectors. 
Once designed into a program, XP 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 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 serves a global blue chip customer base from 29
locations in Europe, North America and Asia. 



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