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 expectations1.
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