Q3 Trading Update

11 October 2021

XP Power Limited

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

Q3 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 third quarter ended 30 September 2021.

Trading

The strong momentum in order intake seen in the first half of the year accelerated in Q3, with orders up 87% at constant currency, and 73% as reported, to £97.2 million. Order growth was driven by continued strength in the Semiconductor Manufacturing Equipment sector, the ongoing recovery in Industrial Technology, and a pick-up in Healthcare, where third quarter orders were 70% above 2019 levels. The extension of lead times to customers has brought orders forward as customers seek to secure supply.  Year to date order intake was up 37% at constant currency. The Group enters the final quarter of the year with a very strong order backlog position partially as a result of lead times that have continued to extend.

As expected, revenue of £61.6 million in Q3 2021 was down year-on-year, 5% on a constant currency basis and 11% as reported, as the exceptional COVID-19 related Healthcare revenue in the prior year was not repeated. Year to date, revenue has grown 12% on a constant currency basis (4% as reported) mostly driven by the Semiconductor Manufacturing Equipment sector.

The book to bill ratio, which tracks the relationship between orders received and completed sales, was 1.58 for the third quarter of 2021 (Q3 2020: 0.82).

£ Millions	Q3 2021	Q3 2020	Change	Change in constant currency
Orders	97.2	56.3	+73%	+87%
Year to date	254.7	202.1	+26%	+37%
Revenue	61.6	69.0	-11%	-5%
Year to date	181.4	174.1	+4%	+12%
Book to Bill
Third quarter	1.58	0.82	+0.76
Year to date	1.40	1.16	+0.24

Financial Position and dividend

Net debt at 30 September 2021 was £25.2 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 declared a dividend for the third quarter of 21.0 pence per share (2020: 20.0 pence per share). The ex-dividend date will be 9 December 2021 and the dividend will be paid on 17 January 2022 to shareholders on the register at the record date of 10 December 2021. The last date for election for the share alternative to the dividend under the Company’s Dividend Reinvestment Plan is 24 December 2021.

Outlook

The Board’s expectations for the full year remain in line with current market expectations. While our order book provides us with excellent visibility well into 2022, we continue to monitor closely the impact of the current uncertainties in global supply chains, including shortages of key components, ongoing COVID-19 challenges and freight capacity constraints, with associated increased costs.

Longer term, the Board believes XP Power remains very well positioned to grow ahead of its end markets, supported by its strong cash generation and robust balance sheet.

Enquiries:

XP Power 

Gavin Griggs, Chief Executive Officer  [phone]

Oskar Zahn, 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.

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 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 xppower.com