The supplier of power components reported some healthy growth figures in Q4 17.
Companies: XP Power Ltd.
XP Power (LON: XPP) has rounded out 2017 with a strong fourth quarter, boosted by a strong order intake in Q3 17.
Q4 17 Revenues jumped 23% on a cc basis compared to Q4 16 helping full-year Revenues reach £167m, up 22% on a cc basis compared to the prior year.
Order intakes also grew by almost a third in Q4 17 versus Q4 16, resulting in full-year order intake growth of over 31% to £184m.
The encouraging numbers meant the stock was trading up 2% to 3,700p on Friday morning.
Comdel, the US-based radio frequency manufacturer which XPP purchased in October '17 for $23m, also reported some healthy growth figures - 114% order book growth in Q4 17 versus Q4 16. The acquisition also means the Group rounds out the year with a Net Debt position of £10m.
XPP is interestingly one of the only companies to issue Quarterly dividends - shareholders received 18p per share for Q3 and are expected to receive a dividend "no less than 28p" for Q4, meaning a minimum total dividend of 77p per share.
Broker Edison commented in its note today on the trading statement:
"XP saw a strong finish to the year, with Q4 revenue growth of 16% y-o-y and order growth of 24% y-o-y, resulting in FY17 revenues slightly ahead of our forecast. Good demand across all sectors and geographies was boosted by a strong contribution from the recent Comdel acquisition.
Management expects continued growth in FY18; we maintain our forecasts which, based on current momentum, could prove conservative."
XPP is forecast to see both Revenues and Net Profit grow by c. 40% in the two years to 2019 and has a forecast PE ratio of 24x.