14 January 2019
XP Power Limited
("XP Power" or the "Company")
XP Power, one of the world's leading developers and manufacturers of critical power control components for industrial, healthcare, semiconductor and technology markets, is today issuing a trading update for the fourth quarter and year ended 31 December 2018.
The Company had a good finish to 2018, with trading for the full year being in line with the Board's expectations.
All regions and sectors recorded revenue growth in 2018. Our industrial, healthcare and technology markets reported healthy demand across the year and in the fourth quarter but the impact of the widely reported weakness in the semiconductor manufacturing equipment sector meant that both total order intake and revenues in the fourth quarter were lower than that achieved in the third quarter.
Order intake in the fourth quarter of 2018 was £45.1 million, 4% lower than the fourth quarter of 2017 on a reported basis or 6% lower in constant currency. This has resulted in order intake for the twelve months ended 31 December 2018 of £198.4 million, an increase of 8% over 2017 on a reported basis, or 12% in constant currency. On a like-for-like basis excluding the acquisitions of Comdel in September 2017 and Glassman in May 2018, reported order intake for 2018 was £180.2 million, up 1% on 2017.
Revenue in the fourth quarter of 2018 was £48.9 million, 14% ahead of the comparative period on a reported basis, or 12% in constant currency. Revenue for the twelve months ended 31 December 2018 was £194.8 million, an increase of 17% year-on-year, or 21% in constant currency. On a like for like basis excluding acquisitions reported revenue for 2018 was £172.8 million up 7% on 2017.
The Group acquired Glassman in May 2018 for a cash consideration of US$44.5 million. The trading performance of Glassman was in line with the Board's pre-acquisition expectations, with orders and revenues for the seven months of £7.3 million. Integration of the Glassman business into XP Power is proceeding as planned and our sales team is already finding new opportunities for these high power/high voltage products.
Net debt at 31 December 2018 was £52.5 million, compared with £10.1 million at 31 December 2017.
A dividend of 19 pence per share for the third quarter was paid on 10 January 2019, to shareholders on the register at 14 December 2018.
The recommended dividend for the fourth quarter of 2018 will be announced with the 2018 final results on 5 March 2019 but is not expected to be less than 32 pence per share, representing a minimum total dividend of 84 pence per share for 2018, an increase of 8% over the total dividend of 78 pence per share paid for 2017.
While we are not immune from macroeconomic conditions we are encouraged by our ongoing new design wins and healthy order book. On this basis and with the benefit of the Glassman acquisition, we expect further revenue growth in financial year 2019.
Duncan Penny, Chief Executive Officer +44 (0)118 976 5155
Gavin Griggs, Chief Financial Officer +44 (0)118 976 5155
Citigate Dewe Rogerson
Kevin Smith/Jos Bieneman +44 (0)20 7638 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.
XP Power typically designs power control solutions into the end products of major blue-chip OEMs, with a focus on the industrial (circa 42% of sales), healthcare (circa 22% of sales), semiconductor manufacturing (circa 26% of sales) and technology (circa 10% 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 5 to 7 years depending on the industry sector.
XP Power 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 Power serves a global blue-chip customer base from 29 locations in Europe, North America and Asia.
For further information, please visit xppower.com
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