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.