XPP.GB XP Power Ltd

 
TIDMXPP 
 
12 January 2018 
 
                               XP Power Limited 
                         ("XP Power" or the "Company") 
 
                                Trading Update 
 
XP Power, one of the world's leading developers and manufacturers of critical 
power control components for the electronics industry, is today issuing a 
trading update for the fourth quarter ended 31 December 2017. 
 
Trading 
 
The Company had a good finish to the year, in line with the Board's 
expectations, as the strong order intake reported in the third quarter drove 
robust revenue growth in the final quarter. Encouragingly, the momentum in 
order intake continued into the fourth quarter and geographically, both order 
intake and revenue growth has been strong across all regions. 
 
Order intake in the fourth quarter of 2017 was GBP46.8 million, 24% ahead of Q4 
2016 on a reported basis or 32% ahead in constant currency. This resulted in 
order intake for the twelve months ended 31 December 2017 being GBP184.3 million, 
an increase of 38% over 2016 on a reported basis, or 31% in constant currency. 
 
Revenue in the fourth quarter of 2017 was GBP43.2 million, 16% ahead of Q4 2016 
on a reported basis, or 23% in constant currency.  Revenue for the twelve 
months ended 31 December 2017 was GBP167.0 million, an increase of 29% over 2016, 
or 22% in constant currency. 
 
The trading performance of Comdel was in line with the Board's pre-acquisition 
expectations, with orders in the fourth quarter of GBP5.8m, 101% ahead of Q4 2016 
on a reported basis, or 114% in constant currency. Comdel reported fourth 
quarter revenue of GBP4.1m, 30% ahead of Q4 2016 on a reported basis, or 30% in 
constant currency.  Integration of the Comdel business into XP Power is 
proceeding as planned. Orders and revenue for 2017 represent a full year book 
to bill ratio of 1.11 (2016: 1.03) reflecting the strength of customer demand 
across the year. 
 
Financial Position 
 
Following the acquisition of Comdel on 29 September 2017 for US$23.0 million (GBP 
17.0 million), net debt at 31 December 2017 was GBP10.1 million, compared with a 
net cash position of GBP3.6 million at 31 December 2016. 
 
Dividend 
 
A dividend of 18 pence per share for the third quarter was paid on 11 January 
2018, to shareholders on the register at 15 December 2017. 
 
The recommended dividend for the fourth quarter of 2017 will be announced with 
the 2017 final results on 1 March 2018 but is not expected to be less than 28 
pence per share, representing a minimum total dividend of 77 pence per share 
for 2017, an increase of 8% over the total dividend of 71 pence per share paid 
for 2016. 
 
Outlook 
 
We are encouraged by the continued strong order intake experienced across the 
business during the second half of 2017 and the overall book to bill level for 
the year.  We enter 2018 with positive momentum and therefore expect to grow 
orders and revenue in 2018 above that in 2017. 
 
Enquiries: 
 
XP Power 
 
Duncan Penny 
Chief Executive Officer 
+44 (0)118 976 5086 
 
Gavin Griggs 
Chief Financial Officer 
+44 (0)118 976 5154 
 
Citigate Dewe Rogerson 
+44 (0)20 7638 9571 
Kevin Smith/Jos Bieneman 
 
Note to editors 
 
XP designs and manufactures power controllers, the essential sub assembly 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, North America and Vietnam, to develop a range of up to date 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 27 locations in Asia, Europe and 
North America. 
 
 
 
END 
 

(END) Dow Jones Newswires

January 12, 2018 02:00 ET (07:00 GMT)

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