XP Power Ltd Trading Update

 
TIDMXPP 
 
11 January 2024 
 
XP Power Limited 
 
(`XP Power' or `the Group' or the `Company') 
 
Q4 and Full Year 2023 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 fourth quarter and full year ended 31 December 2023. 
 
Trading 
 
                   2023   2022   Change  Change in constant currency 
 
Q4: 
Order intake (£m)  49.1   68.7   (29%)   (22%) 
Revenue (£m)       81.2   87.4   (7%)    (5%) 
Book to Bill       0.6    0.8    (0.2) 
 
Full Year: 
Order intake (£m)  208.9  362.9  (42%)   (43%) 
Revenue (£m)       316.5  290.4  9%      8% 
Book to Bill       0.7    1.2    (0.5) 
 
 
 
2023 by quarter                            Q1     Q2     Q3     Q4 
 
Order intake (£m)                          61.2   54.4   44.2   49.1 
% change vs last year - constant currency  (45%)  (42%)  (54%)  (22%) 
 
Revenue (£m)                               77.9   82.3   75.1   81.2 
% change vs last year - constant currency  16%    28%    (1%)   (5%) 
 
Book to Bill                               0.8    0.7    0.6    0.6 
 
Q4 revenue of £81.2m was slightly ahead of expectations, due largely to the 
decision to reschedule the relocation of our facility in California, from 
December 2023 to January 2024.  This had the effect of bringing forward £5.0m of 
revenues from orders shipped earlier than expected in Q4 2023 rather than Q1 
2024. 
 
Full year revenue was £316.5m, 8% higher than last year on a constant currency 
basis. 
 
Q4 order intake of £49.1m was £4.9m higher than Q3 due to an increase in orders 
for High Voltage products for Semiconductor Manufacturing applications.  We saw 
slower order intake from the Healthcare and Industrial Technology sectors. 
 
We ended 2023 with an order book of c.£192m. 
 
Financial Position 
 
Net debt at 31 December 2023 was £112.6m, lower than expected due to c.£12m of 
capex payments, relating largely to the relocation of our US facility, which was 
re-phased to early 2024, as discussed above.  Strengthening of sterling also 
reduced the value of our US dollar denominated borrowings over the final 
quarter. 
 
Whilst the process of closing our 2023 year end accounts is at an early stage 
and full year profit has yet to be finalised, we estimate that net debt / 
Adjusted EBITDA at 31 December 2023 will be c.2.0x, which compares to 2.6x at 
the end of Q3. 
 
We expect net debt and leverage to increase in the first half of 2024 as the 
deferred capex payments referenced above are made, before reducing thereafter. 
 
Update on funding plan 
 
Our funding plan announced on 6 November 2023 included a package of management 
actions to reduce cost and borrowings. 
 
These actions are on track and delivering the benefits expected. 
 
2024 and longer term 
 
Whilst it is too soon to be definitive about prospects for 2024, we continue to 
expect that market conditions will improve as the year progresses, with our 
results being weighted towards the second half.  Our performance will be 
supported by the actions taken to reduce our cost base and we will continue to 
respond decisively to market conditions as they evolve. 
 
We will provide a further update and outlook with our full year results 
announcement. 
 
The Board remains confident that the Group has strong long-term prospects, and 
significant value, underpinned by our leading market position and broad product 
portfolio. 
 
Enquiries: 
 
XP Power 
 
Gavin Griggs, Chief Executive Officer  +44 (0)118 984 5515 
Matt Webb, Chief Financial Officer     +44 (0)118 984 5515 
 
Citigate Dewe Rogerson 
Kevin Smith/Lucy Gibbs                 +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. Power 
controllers are critical for optimal delivery in challenging environments but 
are a small part of the overall customer product cost. 
 
XP Power typically designs power control solutions into the end products of 
major blue-chip OEMs, with a focus on the Industrial Technology (circa 41% of 
sales), Healthcare (circa 20% sales) and Semiconductor Manufacturing Equipment 
(circa 39% 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 
five to seven years depending on the industry sector. XP Power has invested in 
research and development and its own manufacturing facilities in China, North 
America, 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 All Share Index. XP 
Power serves a global blue-chip customer base from over 30 locations in Europe, 
North America, and Asia. 
 
For further information, please visit www.xppowerplc.com. 
 
 
This information was brought to you by Cision http://news.cision.com 
 
 
END
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