XP Power plc, announced its interim results for the six-month period ended 30 June 2017, including strong first half performance, with encouraging momentum in orders and revenues as new design wins enter production, supported by a recovery in capital equipment markets and Sterling weakness.
James Peters, Chairman, commented: "The Group has had a very strong first half. Reported order intake and revenues for the first six months of 2017 all set new records, assisted by the weakness of Sterling, a recovery in the capital equipment markets and, significantly, new design wins entering their production phase.
- Order intake increased by 52% to £93.4 million (+35% in constant currency)
- Revenue increased by 33% to £80.2 million (+18% in constant currency)
- Gross margin decreased to 46.9% (1H 2016: 49.0%) due to exchange rate effects and reallocation of certain manufacturing costs at EMCO in line with Group policy
- Own-design XP product revenues increased 39% to a record £60.5 million (1H 2016: £43.4 million), and now represent 75% of total revenues (1H 2016: 72%)
- Revenues for ultra-high efficiency "Green XP Power" products continue to grow and are up by 32% to £18.8 million (1H 2016: £14.2 million) representing 23% of total revenue (1H 2016: 24%)
- Dividend for the first half of 2017 of 31.0 pence per share (1H 2016: 29.0 pence per share) up 7%
Peters continued, "Our balance sheet is strong and we are in an excellent position to make selective acquisitions to further broaden our product offering and engineering capabilities. And we will break ground on construction of a second manufacturing facility in Vietnam in the second half of 2017 to expand capacity.
"While we remain conscious of potential macroeconomic challenges, our strong order book, combined with designs won in 2016 and prior years entering production means that the Board now anticipates the Group's performance for the full year will be comfortably ahead of its existing expectations," Peters concluded.