Last checked at 3 Mar 2021 07:00
Edison Investment Research Limited Edison Investment Research Limited: XP Power (XPP): A record year 03-March-2021 / 07:00 GMT/BST
London, UK, 3 March 2021
XP Power (XPP): A record year XP Power reacted quickly to pandemic-related disruption early in 2020, so well positioned to benefit from a sustained uptick in orders as COVID-19 generated demand for critical care equipment and semiconductors. The company reported a record year for revenue and earnings while reducing net debt; the dividend was reinstated from Q220 as visibility improved. Despite expecting demand to normalise, XP still expects growth in underlying revenues in FY21.
Having gained 79% over the last year, on a P/E basis XP is trading at a premium to both global power-converter companies and UK electronics companies, with a dividend yield at the upper end of the range. The company generates EBITDA and EBIT margins at the top end of both peer groups. Strong cash management during the crisis, which reduced net debt by 57% y-o-y, leaves the company well funded to pursue both organic and acquisitive growth.
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1172302 03-March-2021
corporate announcement transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.