Q4 and Full Year Trading Update
11 January 2022
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 fourth quarter ended 31 December 2021.
The strong order intake momentum seen throughout 2021 continued through Q4, with orders up 65% at constant currency and 58% as reported to £88.6 million with a book to bill of 1.51x. All sectors saw robust order intake growth, with orders well above both 2020 and 2019 levels, and above our expectations. Full year order intake was up 43% at constant currency and the Group enters 2022 with a record order book.
Revenue in Q4 was £58.8 million, up 4% year-on-year (down 1% as reported), slightly down on the Board’s expectations as the previously announced supply chain constraints, specifically the availability of key components and freight capacity impacted customer deliveries towards the end of the year. As a result, 2021 adjusted operating profit is anticipated to be modestly below the lower end of current market expectations1.
For the 2021 financial year as a whole, revenue has grown 10% on a constant currency basis (3% as reported) to £240.2 million against what was a tough prior year comparator which benefitted from £15-20 million of healthcare equipment related sales directly linked to COVID-19. The increase in FY 2021 was primarily driven by the Semiconductor Manufacturing Equipment sector.
1 The current range of analyst expectations for adjusted operating profit for the year ended 31 December 2021 is £46 million to £48 million
|£ Millions||Q4 2021||Q4 2020||Change||Change in constant currency|
|Year to date||343.4||258.0||33%||43%|
|Year to date||240.2||233.3||3%||10%|
|Book to Bill|
|Year to date||1.43||1.11||0.32|
Financial Position and dividend
Net debt at 31 December 2021 was £24.7 million, compared with £17.9 million at 31 December 2020, reflecting higher working capital to support the record order book and future revenue growth.
The recommended dividend for the fourth quarter of 2021 will be announced with the 2021 Final Results on 1 March 2022 but is not expected to be less than 36 pence per share, representing a minimum total dividend of 94 pence per share for the year.
The Group starts the new financial year with a record order book, which provides excellent visibility through 2022. While we remain mindful of the ongoing uncertainties in respect of component supply and freight capacity and costs and are continuing to monitor the situation carefully, we are optimistic on the Group’s prospects for the year ahead and plan to invest in new manufacturing capacity in 2022 to support the future growth of the Group.
Longer term, the Board believes XP Power to be very well positioned to grow ahead of its end markets, supported by its strong cash generation and a robust balance sheet.
The Group will report its FY 2021 results on the 1 March 2022.
Gavin Griggs, Chief Executive Officer +44 (0)118 984 5515
Oskar Zahn, Chief Financial Officer +44 (0)118 984 5515
Citigate Dewe Rogerson
Kevin Smith/Jos Bieneman +44 (0)207 638 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 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