XP POWER LTD - Trading Update

Revenues for the nine months ended 30 September 2016 increased by 13% over the prior year to £92.6 million (2015: £81.7 million). In constant currency the increase in revenues was 5%.  

Orders for the nine months ended 30 September 2016 were encouraging at £95.8 million (2015: £80.3 million) which was 19% higher than the prior year. In constant currency this was an increase of 11%.

Third quarter order intake was boosted as customer orders expected to be placed in the fourth quarter were pulled forward into September. Our third quarter order intake was £34.2 million (2015: £23.9 million), exceeding the previous record of £31.3 million achieved in the second quarter of 2016 (Q2 2015: £28.8 million). The momentum in our order intake is encouraging, particularly as we are starting to see our North American markets return to growth.   

Financial Position

Net debt was £2.2 million at 30 September 2016 compared to £6.0 at 30 June 2016.

Dividend

A dividend for the third quarter of 16 pence per share will be paid on 12 January 2017 to shareholders on the register at 16 December 2016. This brings the total dividend for the first three quarters of 2016 to 45 pence per share, representing a 7% increase over the 42 pence per share paid in respect of the first three quarters of 2015.

Outlook
 

Despite the challenging macroeconomic backdrop, we are reassured by the momentum in our order intake during Q3. The Board expect trading to be in line with its expectations for the full year.

We remain encouraged by new design wins and believe the Group is continuing to take market share as its portfolio of industry-leading power technology products is increasingly designed-in to new equipment by our target customers. These design wins will translate to orders as our customers’ projects move to production phase over the coming years. 

XP Power will issue a trading update for the year to 31 December 2016 on 13 January 2017.

- Ends -

Enquiries:

XP Power                                                                                                                                                                                                                                    

Duncan Penny, Chief Executive    +44 (0)7776 178 018

Jonathan Rhodes, Finance Director                                                                      +44 (0)118 976 5074                                                             

Citigate Dewe Rogerson             +44 (0)20 7638 9571

Kevin Smith/Jos Bieneman

Note to editors

XP designs and manufactures power controllers, the essential hardware component 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 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 serves a global blue chip customer base from 29 locations in Europe, North America and Asia.