13 April 2023
XP Power Limited
(‘XP Power’ or ‘the Group’ or the ‘Company’)
Q1 2023 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
first quarter ended 31 March 2023
(“the period”).
Trading
Trading in the period has been in line with our expectations,
and our outlook for the full year remains unchanged.
The Group had an order book of c.£280m at the end of the period.
This remains well above historic levels and provides excellent full
year visibility.
Consistent with the end of 2022, order intake was below revenue
in the period as customers moderated order volumes from the
unprecedented levels seen in 2021 and the first half of 2022,
reflecting an easing of supply chain constraints and a softening of
end market demand. Order intake was £61.2 million, down 45% at
constant currency and 40% as reported with Semiconductor
Manufacturing Equipment and Industrial Technology seeing the
greatest impacts. We would expect similar order intake patterns
through the second quarter before a pick up in the second half of
2023.
Revenue grew strongly to £77.9 million, up 16% year-on-year on a
constant currency basis and 26% as reported. The higher revenue
enabled the Group to deliver improved profitability compared to the
prior year period.
£ Millions |
Q1 2023 |
Q1 2022 |
Change |
Change in constant
currency |
|
|
|
|
|
Orders |
61.2 |
102.4 |
(40)% |
(45)% |
|
|
|
|
|
Revenue |
77.9 |
61.8 |
26% |
16% |
|
|
|
|
|
Book to
Bill |
|
|
|
|
First quarter |
0.79 |
1.66 |
-0.87 |
|
|
|
|
|
|
Financial Position and Dividend
Net debt at 31 March 2023 was
£147.0 million, a reduction from £151.0 million at 31 December 2022.
Based on the Group's improved trading and stronger cash
performance, net debt/EBITDA at the end of June 2023 is expected to be below that reported
at the 2022 year end. We continue to expect net debt/EBITDA to
reduce towards two times by the end of 2023.
The Board has declared a dividend for the first quarter of
18 pence per share (2022:
18 pence per share). The ex-dividend
date will be 15 June 2023 and the
dividend will be paid on 13 July 2023
to shareholders on the register at the record date of 16 June 2023. The last date for election for the
share alternative to the dividend under the Company’s Dividend
Reinvestment Plan is 22 June
2023.
Outlook
The Group has traded well in the opening months of 2023. We have
significant order book visibility covering the remainder of 2023,
and into 2024, and as such our full year expectations are
unchanged. We continue to expect a modest second half weighting to
the full year outturn.
Longer term, the Board believes XP’s clear strategy and
financial framework leave the Group well positioned to grow ahead
of its end markets, drive further market share gains, improve
profitability and deliver strong cash generation.
Enquiries:
XP
Power
Gavin Griggs, Chief Executive
Officer
+44 (0)118 984 5515
David Stibbs, Interim Chief
Financial Officer +44 (0)118 984 5515
Citigate Dewe
Rogerson
Kevin Smith/Lucy
Gibbs
+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. Power controllers are critical for
optimal delivery in challenging environments but are a small part
of the overall customer product cost.
XP Power typically designs power control solutions into the end
products of major blue-chip OEMs, with a focus on the Industrial
Technology (circa 41% of sales), Healthcare (circa 20% sales) and
Semiconductor Manufacturing Equipment (circa 39% 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 five to
seven years depending on the industry sector. XP Power has invested
in research and development and its own manufacturing facilities in
China, North America, 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 All Share Index. XP Power
serves a global blue-chip customer base from over 30 locations in
Europe, North America, and Asia.
For further information, please visit xppowerplc.com