XP Power, one of the world's leading developers and manufacturers of critical power control components to the electronics industry, is today issuing its trading update for the quarter ended 30 September 2017.
Trading in the third quarter has been robust. Revenues for the nine months ended 30 September 2017 increased by 34% over the prior year to £123.9 million (2016: £92.6 million). In constant currency the increase in revenues was 21%.
Order intake for the nine months ended 30 September 2017 was strong at £137.5 million (2016: £95.8 million) which was 44% higher than the prior year. In constant currency this was an increase of 30%.
Our third quarter order intake was £44.1 million (2016: £34.2 million). The momentum in our order intake is encouraging, particularly the continued growth we are experiencing in our North American markets.
The Group entered into a new revolving credit facility ("RCF") at the end of the quarter of US$40.0 million with a US$20.0 million additional accordion option. The new facility is in place to assist the Group's acquisition strategy.
Net debt was £10.8 million at 30 September 2017 following the draw down on the Group's new RCF to finance the US$23 million acquisition of Comdel which closed on 29 September 2017. Net cash at 30 June 2017 was £8.0 million.
A dividend for the third quarter of 18 pence per share will be paid on 11 January 2018 to shareholders on the register at 15 December 2017. This brings the total dividend for the first three quarters of 2017 to 49 pence per share, representing a 9% increase over the 45 pence per share paid in respect of the first three quarters of 2016.
We are encouraged by another quarter of strong order intake with our end markets remaining buoyant.
The Group believes it 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 in to orders as our customers' projects move to production phase over the coming years.
The Board now anticipates the Group's performance for the full year will be ahead of its previous expectations outlined at the time of the Group's interim results on 31 July 2017.
Furthermore, the acquisition of the business and assets of Comdel just before the period end was the latest step in the Group's strategy of acquiring complementary product capabilities. The acquisition will enable XP Power to provide its existing customers with a comprehensive product offering in Radio Frequency power supplies, increasing our addressable market and further expanding our revenue base. The Group is continuing its search for further suitable M&A opportunities.
XP Power will issue a trading update for the year to 31 December 2017 on 12 January 2018.
Duncan Penny, Chief Executive
Jonathan Rhodes, Finance Director
|+44 (0)7776 178 018
+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.