The XP Power Board has declared a dividend for the second quarter of 19.0 pence per share (2020: 18.0 pence per share). The ex-dividend date will be 9 September 2021 and the dividend will be paid on 14 October 2021 to shareholders on the register at the record date of 10 September 2021. The last date for election for the share alternative to the dividend under the Company’s Dividend Reinvestment Plan is 24 September 2021.
Other financial. highlights include:
- Record order intake up 17% at constant currency and 8% reported to £157.6 million, with growth driven by continued strength in the Semiconductor Manufacturing Equipment sector and a recovery in Industrial Technology, offset by the expected normalisation in Healthcare after exceptional COVID-19 related performance in 2020.
- Group enters H2 2021 with a record order book of £150.3 million (31 December 2020: £124.1 million).
- Constant currency revenue grew 23%, with reported revenue up 14% to £119.9 million.
- Gross margin increased to 46.6% (H1 2020: 44.9%) driven by favourable sector and product mix as well as cost savings from transfer of manufacturing to Asia following the closure of the Nevada, US site in mid-2020, partially offset by increased freight costs
- Adjusted cash generated from operations up 3% to £26.4 million (H1 2020: £25.7 million), despite investing in working capital to support customer demand and to secure supply of crucial components. Maintaining high operating cash conversion of over 100%.
- Net debt of £20.3 million at period end (December 2020: £17.9 million) with net debt to EBITDA of just 0.3x. Significant liquidity available – c.£87 million.
- First half dividend for 2021 of 37 pence per share (H1 2020: 18.0 pence per share), comparative period impacted by COVID-19. The payment reflects the confidence the Board has in the Group’s longer-term prospects.
- The Board expects FY 2021 trading to be modestly ahead of analysts’ consensus expectations, while remaining mindful of certain headwinds.
