REG-XP Power Ltd: Trading Update

XP PowerAnnouncement

11/01/2022 07:05

11 January 2022

XP Power Limited

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

Q4 and Full Year 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 ended 31 December 2021.

Trading

The strong order intake momentum seen throughout 2021 continued through Q4,
with orders up 65% at constant currency and 58% as reported to £88.6 million
with a book to bill of 1.51x. All sectors saw robust order intake growth, with
orders well above both 2020 and 2019 levels, and above our expectations. Full
year order intake was up 43% at constant currency and the Group enters 2022
with a record order book.

Revenue in Q4 was £58.8 million, up 4% year-on-year (down 1% as reported),
slightly down on the Board’s expectations as the previously announced supply
chain constraints, specifically the availability of key components and freight
capacity impacted customer deliveries towards the end of the year. As a
result, 2021 adjusted operating profit is anticipated to be modestly below the
lower end of current market expectations(1).

For the 2021 financial year as a whole, revenue has grown 10% on a constant
currency basis (3% as reported) to £240.2 million against what was a tough
prior year comparator which benefitted from £15-20 million of healthcare
equipment related sales directly linked to COVID-19. The increase in FY 2021
was primarily driven by the Semiconductor Manufacturing Equipment sector.

(1) The current range of analyst expectations for adjusted operating profit
for the year ended 31 December 2021 is £46 million to £48 million

 £ Millions       Q4 2021  Q4 2020  Change  Change in constant currency 
                                                                        
 Orders              88.6     55.9     58%                          65% 
 Year to date       343.4    258.0     33%                          43% 
                                                                        
 Revenue             58.8     59.3     -1%                           4% 
 Year to date       240.2    233.3      3%                          10% 
                                                                        
 Book to Bill                                                           
 Fourth quarter      1.51     0.94    0.57                              
 Year to date        1.43     1.11    0.32                              

Financial Position and dividend

Net debt at 31 December 2021 was £24.7 million, compared with £17.9 million
at 31 December 2020, reflecting higher working capital to support the record
order book and future revenue growth.

The recommended dividend for the fourth quarter of 2021 will be announced with
the 2021 Final Results on 1 March 2022 but is not expected to be less than 36
pence per share, representing a minimum total dividend of 94 pence per share
for the year. 

Outlook

The Group starts the new financial year with a record order book, which
provides excellent visibility through 2022. While we remain mindful of the
ongoing uncertainties in respect of component supply and freight capacity and
costs and are continuing to monitor the situation carefully, we are optimistic
on the Group’s prospects for the year ahead and plan to invest in new
manufacturing capacity in 2022 to support the future growth of the Group.  

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.

The Group will report its FY 2021 results on the 1 March 2022.

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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