XP Power announces a dividend reinstated from the second quarter of 2020 at 18.0 pence per share
Matthew Riding
DividendMax Ltd.
XP Power announces a diividend reinstated from the second quarter of 2020 at 18.0 pence per share (aggregated Q1 and Q2 2019: 35.0 pence per share), reflecting the confidence the Board has in the Group’s longer-term prospects.
Other financial highlights include:
Order intake increased by 45% to £145.8 million (41% increase at constant currency) due to recovery in the Semiconductor Equipment Manufacturing sector and COVID-19 related demand from their Healthcare customers. We enter H2 2020 with a record order book of £138.2 million (December 2019: £98.2 million).
Revenue grew 6% to £105.1 million (4% increase in constant currency).
Own-design XP product revenues increased 10% on a reported basis to a record £84.9 million (H1 2019: £77.3 million), representing 81% of total revenues (H1 2019: 78%).
Gross margin increased slightly to 44.9% (H1 2019: 44.6%) due to changes in product and customer mix partially offset by costs relating to COVID-19.
Expansion of their Vietnam manufacturing facility, which was completed in 2019, enabled the Group to demonstrate the resilience of its supply chain and maintain product deliveries to customers, despite the temporary shutdown of our Chinese factory in response to COVID-19.
Cash generated from operations down 15% to £21.5 million (H1 2019: £25.2 million) due to investment in working capital to fulfil increased demand.
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