XP Power reported a jump in first-half revenue on Tuesday and declared a dividend as it said trading had been in line with its expectations.
The company, which develops and manufactures critical power control components, said it made a good start to the year, with order intake up 7% at constant currency compared to the first quarter of last year, or 1% ahead on a reported basis.
This was driven by continued strength in the semiconductor manufacturing equipment sector and a recovery in the industrial technology sector. As expected, however, healthcare orders fell versus 2020 due to the exceptional Covid-19 related orders received then not repeating.
Revenue rose 23% year-on-year at constant currency and was 16% higher on a reported basis.
“The strong year-on-year revenue growth partially reflects the Covid-19 related extended shutdown of our manufacturing facility in China and the associated supply chain challenges in the prior year,” XP Power said.
The company recommended a dividend of 18p a share for the first quarter, having not paid a dividend in the same period a year ago.
“The group is encouraged by its order intake for the first quarter, providing a strong order book and underpins our confidence in delivering underlying revenue growth for the full year,” it said. “Overall, we remain positive about the group’s prospects but are mindful of the potential impact from foreign exchange movements and the ongoing Covid-19 related uncertainty.
“Longer term, the board believes XP Power to be very well positioned to grow ahead of its end markets, supported by its strong cash generation and a robust balance sheet.”
