reports
- Richard Williamson
XP Power - Expecting better market conditions in 2024
XP Power closed FY23 with higher-than-expected revenue, benefiting from the delay to relocation of its California facility, which pulled shipments worth c £5m into Q423 and pushed c £12m capex into Q124. Q423 order intake was higher than we forecast, with upside from semiconductor equipment customers partially offset by weaker demand from healthcare and industrial customers. Timing issues and currency resulted in lower-than-expected gearing at end-FY23, although it is expected to rise in H124 be...
- Richard Williamson
XP Power - Fully funded for medium-term growth
With weaker end demand than originally expected in Q323, XP Power’s trading update confirmed a lower outlook for FY23 operating profit and a consequent rise in net debt. To mitigate the risk of hitting debt covenants, the company has initiated a series of cost and cash saving measures, renegotiated its debt covenants and undertaken a fundraise. With revised debt covenants in place and reduced gearing, we believe XP is now well positioned for growth as end market conditions improve.
- Richard Williamson
XP Power - Solid H123, outlook for FY23 maintained
XP Power reported year-on-year revenue growth of 30% in H123 as it made good progress shipping from its elevated backlog. As expected, orders declined year-on-year, but the c £250m backlog still provides at least nine months’ revenue visibility. The company continues to invest for the longer term in Malaysia (manufacturing) and the United States (R&D). With no change to management’s full year expectations, we maintain our normalised operating profit forecasts for FY23 and FY24 and nudge up our i...
- Richard Williamson
XP Power - Maintaining FY23 outlook
XP Power confirmed that trading in Q123 was in line with its expectations. As expected, order intake declined from the record level a year ago, reflecting an improving supply chain and softening end-market demand, particularly for semiconductor equipment and industrial technology. Revenue and profitability were higher than a year ago. The strong backlog provides good visibility for the remainder of the year and we expect it to gradually reduce as current year orders are shipped and customers rev...
- Liberum Research Team
- Richard Williamson
XP Power - Entering FY23 with positive momentum
XP Power (XP) battled through FY22 to meet strong customer demand despite numerous supply chain challenges. H2 performance was significantly better than H1 as supply chain pressures started to ease, and XP enters FY23 with a record £308m order book. The company is targeting 10% organic revenue growth across the cycle and a return to historic profitability levels; we expect XP to make progress towards these targets in FY23 and FY24 while reducing gearing.
- Richard Williamson
XP Power - Strong H222 with good visibility for FY23
XP Power’s FY22 trading update confirmed that its H222 performance was significantly stronger than H122 as supply chain conditions improved. As expected, Q4 order intake moderated as customers adapted to longer lead times. The year-end order book provides good visibility for FY23 and management is optimistic on XP’s prospects for the year. We have revised our forecasts to reflect moderating order intake and higher levels of debt.
- Richard Williamson
XP Power - Q3 output picks up; demand remains strong
Quarter-on-quarter revenue growth of 28% in Q322 confirmed that supply chain challenges have started to ease for XP. Despite the current uncertain economic environment, and reports of weaker consumer demand from some semiconductor companies, XP reported robust order intake and a book-to-bill of 1.27x for Q3, closing the quarter with a record order book. The discount to peers has widened, in our view reflecting uncertainty around demand and the Comet litigation case.
- Richard Williamson
XP Power - Update on COMET legal action
On Friday 30 September, the judge in the COMET trades secret misappropriation case confirmed the jury award and imposed an injunction on XP Power in relation to certain trade secrets. With the award and related legal fees already provided for, and no current business using the trade secrets, we make no changes to estimates. The company will provide a Q322 trading update on 11 October but confirmed that trading in Q3 had improved from the H122 run rate.
XP Power Ltd: 2 directors
Two Directors at XP Power Ltd bought/sold after exercising options/maiden bought 11,197 shares at between 2,584p and 2,603p. The significance rating of the trade was 74/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by ...
- Richard Williamson
XP Power - Demand remains strong despite supply issues
The continuation of component shortages and further COVID-19 disruption reduced the amount of product XP Power could ship in H122, weighing on gross margins and adjusted operating profit. At the same time, customer demand remains strong and the company has a record order backlog. With component availability improving, XP is already seeing better financial performance and expects a much stronger H2. We have revised our forecasts to reflect H122 results and the strengthening US dollar, resulting i...
- Richard Williamson
XP Power - Demand outpacing supply
XP’s Q122 trading update confirms demand has remained strong across the board, with order intake up 39% y-o-y. Ongoing supply chain issues limited the amount of product that could be shipped in the quarter, with revenue up 8% y-o-y. We have revised our forecasts to take account of supply chain headwinds and the recent US legal case, reducing our normalised diluted EPS forecast by 7.1% for FY22 and 4.2% for FY23.
Edison Investment Research Limited: XP Power (XPP): Focused on efficie...
Edison Investment Research Limited Edison Investment Research Limited: XP Power (XPP): Focused on efficiency and growth 02-March-2022 / 07:00 GMT/BST London, UK, 2 March 2022 XP Power (XPP): Focused on efficiency and growth XP Power saw another year of strong customer demand, with orders up 33% y-o-y after 20% growth in FY20. FY21 results reflected the challenges of dealing with component shortages, increased freight costs and further COVID-19 restrictions, which constrained H221 revenue and weighed on gross margin. XP enters FY22 with its strongest ever backlog providing go...
- Richard Williamson
XP Power - Focused on efficiency and growth
XP Power saw another year of strong customer demand, with orders up 33% y-o-y after 20% growth in FY20. FY21 results reflected the challenges of dealing with component shortages, increased freight costs and further COVID-19 restrictions, which constrained H221 revenue and weighed on gross margin. XP enters FY22 with its strongest ever backlog providing good visibility for the year. The company is focused on building further operational and supply chain agility while investing in product developm...
XP POWER LTD increases its risk exposure and slightly lowers to Neutra...
XP POWER LTD (SG), a company active in the Electrical Components & Equipment industry, now shows a lower overall rating. The independent financial analyst theScreener confirms the fundamental rating of 2 out of 4 stars. However, the market behaviour deterioration triggered a risk requalification, which can be thus described as moderately risky. theScreener believes that increased risk justifies the general evaluation downgrade to Neutral. As of the analysis date February 4, 2022, the closing pri...
- Richard Williamson
XP Power - German high-voltage acquisitions
XP Power has acquired two German companies specialising in high-voltage power solutions from a single vendor for cash of €39m/£32.8m, funded by existing debt facilities. The deal extends XP’s product range and strengthens its position in Europe. With higher combined operating margins than XP, the company expects the deal to be earnings enhancing this year. We have upgraded our FY22 diluted normalised EPS forecast by 1.7% and introduce FY23 forecasts for 12.3% EPS growth.
- Richard Williamson
XP Power - German high-voltage acquisitions
XP Power has acquired two German companies specialising in high-voltage power solutions from a single vendor for cash of €39m/£32.8m, funded by existing debt facilities. The deal extends XP’s product range and strengthens its position in Europe. With higher combined operating margins than XP, the company expects the deal to be earnings enhancing this year. We have upgraded our FY22 diluted normalised EPS forecast by 1.7% and introduce FY23 forecasts for 12.3% EPS growth.
- Richard Williamson
XP Power - Record orders in FY21
Well-flagged supply chain issues in Q421 held back revenue despite continued strong order intake. We have trimmed our FY21 forecasts to reflect this (EPS down 2.9%) but note that stronger than expected order intake increases confidence in our unchanged FY22 forecasts.
- Richard Williamson
XP Power - Record orders in FY21
Well-flagged supply chain issues in Q421 held back revenue despite continued strong order intake. We have trimmed our FY21 forecasts to reflect this (EPS down 2.9%) but note that stronger than expected order intake increases confidence in our unchanged FY22 forecasts.
- Richard Williamson
XP Power - Q3 bookings up 73% year-on-year
XP Power has reported another record quarter for orders as customers in all three sectors seek to secure their requirements in the midst of global supply-chain challenges. Revenue and bookings for the nine months to 30 September (9M21) are ahead of our expectations and we have revised our forecasts to reflect this, with EPS upgrades of 2% in FY21 and 3% in FY22.
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