XPP.GB XP Power Ltd

 
TIDMXPP 
 
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. 
 
GBP Millions                2019       2018     Change   Change in    Like for 
                                                        constant      like 
                                                        currency     change1 
 
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 GBP41.5 million, compared with GBP52.0 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 
 
 
 
END 
 

(END) Dow Jones Newswires

January 13, 2020 02:00 ET (07:00 GMT)

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