REG-XP Power Ltd: Trading Statement

XP PowerAnnouncement

13/01/2020 07:05

13 January 2020

XP Power Limited

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

Pre-close 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 fourth quarter and year ended 31 December 2019.

Trading

Trading in the period since the Company’s update of 10 December 2019 has
been in line with the Board’s expectations. Order intake in Q4 2019 was
strong with an acceleration in December of the trends seen earlier in the
quarter.  The improvement was seen across all of our sectors. 

The Group’s new Enterprise Resource Planning (“ERP”) system is working
well and the Group has continued to ship at or above normal rates since
mid-November.

 £ Millions       2019   2018  Change  Change in constant currency  Like for like change (1)  
 Orders                                                                                       
 Fourth quarter   58.6   45.1    30%               29%                         n/a            
 Year to date    215.1  198.4    8%                 4%                         2%             
                                                                                              
 Revenues                                                                                     
 Fourth quarter   47.7   49.0    -3%               -5%                         n/a            
 Year to date    200.4  195.1    3%                -1%                         -4%            
                                                                                              
 Book to Bill                                                                                 
 Fourth quarter   1.23   0.92   0.31                                                          
 Year to date     1.07   1.02   0.05                                                          
                                                                                              

(1) Like for like basis, removing currency effects and the impact of the
Glassman acquisition in May 2018.

Financial Position

Net debt at 31 December 2019 was £41.5 million, compared with £52.0 million
at 31 December 2018. The net debt position benefited from foreign exchange
movements and the phasing of working capital over the year end.

The Company renewed its financing facilities with effect from 8 November 2019,
increasing the revolving credit facility by US$15m to US$120m, with a US$60m
accordion option. The facility is provided by HSBC UK Bank PLC, J.P. Morgan
Securities PLC and DBS Bank Ltd on similar terms to the previous arrangements,
with a four year term up to November 2023.

Dividend

A dividend of 20 pence per share for the third quarter will be paid on 13
January 2020, to shareholders on the register at 13 December 2019.

The recommended dividend for the fourth quarter of 2019 will be announced with
the 2019 Final Results on 3 March 2020 but is not expected to be less than 36
pence per share, representing a minimum total dividend of 91 pence per share
for 2019, an increase of 7% over the total dividend of 85 pence per share paid
for 2018.

Outlook

Order intake for the fourth quarter was strong and we remain encouraged by the
healthy order book and ongoing new design wins. On this basis we expect
revenue growth in the 2020 financial year.

Enquiries:

XP Power 

Duncan Penny, Chief Executive Officer  +44 (0)118 976 5155

Gavin Griggs, Chief Financial Officer      +44 (0)118 976 5155

Citigate Dewe Rogerson                    

Kevin Smith/Jos Bieneman                    +44 (0)20 7638
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 typically designs power control solutions into the end products of
major blue-chip OEMs, with a focus on the Industrial (circa 47% of sales),
Healthcare (circa 24% of sales), Semiconductor Equipment Manufacturing (circa
18% of sales) and Technology (circa 11% 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



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