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 31 March 2017.
Trading in the first quarter has been strong, as the positive momentum established in the second half of 2016 continued into the first quarter of 2017. Revenue growth, which had been building sequentially over the previous two quarters, accelerated once again in the first quarter of the new financial year. Group revenues in the three months to 31 March 2016 were £39.6 million (2016: £28.2 million), up 40% from those achieved in the same period a year ago. In constant currency, revenues were up 23%.
Order intake in the quarter was also very encouraging at £47.0 million (2016: £30.3 million), up 55% on the same period in the prior year. In constant currency order intake was up 36%.
Net cash was £8.8 million at 31 March 2017 compared with £3.7 million at the year end.
The Board has declared a dividend for the first quarter of 15 pence per share, a 7% increase over the prior year, which will be paid on 10 July 2017 to shareholders on the register at 16 June 2017 (2016: 14 pence per share).
The Group has made a good start to its financial year, with continued growth in revenues and strong momentum in order intake. We are encouraged by the outlook and the Group remains on track to be in line with our expectations in 2017.
XP Power will issue its interim results for the six months to 30 June 2017 on 31 July 2017.
Duncan Penny, Chief Executive
Jonathan Rhodes, Finance Director
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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.