Q1 Trading update

 13 April 2021

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

Q1 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 2021.

Trading

Trading in the first quarter of 2021 has been in line with the Board’s expectations. The Group made a good start to the year with order intake up 7% on Q1 2020 on a constant currency basis and 1% ahead as reported. This performance was driven by the continued strength in the Semiconductor Manufacturing Equipment sector and a recovery in the Industrial Technology sector. As expected, Healthcare orders decreased compared to the prior year, due to the exceptional COVID-19 related orders received in Q1 2020 not repeating.

Revenue in the first quarter of 2021 was up 23% year-on-year on a constant currency basis and 16% ahead as reported. The strong year-on-year revenue growth partially reflects the COVID-19 related extended shutdown of our manufacturing facility in China and the associated supply chain challenges in the prior year.

The book to bill ratio, which tracks the relationship between orders received and completed sales, and which is an indicator of future revenue growth, was 1.29 for the first quarter of 2021 (Q1 2020: 1.49) driven particularly by the demand from Semiconductor Manufacturing Equipment and Industrial Technology customers.

£ Millions	Q1 2021	Q1 2020	Q4 2020	Q1 2020		Q4 2020
				Change	Change in constant currency	Change	Change in constant currency
Orders	73.7	73.1	55.9	1%	7%	32%	38%
Revenue	57.1	49.1	59.2	16%	23%	-3%	1%
Book to Bill	1.29	1.49	0.94	-0.20		0.35

Financial Position and dividend

Net debt at 31 March 2021 was £18.4 million, compared with £17.9 million at 31 December 2020. The Group will continue its disciplined approach to capital allocation, prioritising a strong balance sheet and the flexibility that this provides.

The Board has recommended a dividend for the first quarter of 18 pence per share, which will be paid on 14 July 2021 to shareholders on the register at 18 June 2021 (2020: nil pence per share).

Outlook

The Group is encouraged by its order intake for the first quarter, providing a strong order book and underpins our confidence in delivering underlying revenue growth for the full year. Overall, we remain positive about the Group’s prospects but are mindful of the potential impact from foreign exchange movements and the ongoing COVID-19 related uncertainty.

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. 

Enquiries:

XP Power
Gavin Griggs, Chief Executive Officer      [phone]
Johan Olivier, Acting Chief Financial Officer  [phone]

Citigate Dewe Rogerson 
Kevin Smith/Jos Bieneman        [phone]

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 40% of sales), Healthcare (circa 30% sales) and Semiconductor Manufacturing Equipment (circa 30% 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 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 xppowerplc.com