XP Power


£465.5m market cap

2420p last close

XP Power is a developer and designer of power control solutions with production facilities in China, Vietnam and the US, and design, service and sales teams across Europe, the US and Asia.

Investment summary

XP’s H119 performance was subdued by trade tariffs and the continued semiconductor downturn, which masked the strong demand seen from industrial, healthcare and technology customers. Management is taking action to minimise the effect of trade tariffs and reduce manufacturing costs while ensuring it has access to key components and is ready for Brexit. Despite short-term pressures, XP is confident that broad-based design wins position it well for future growth. We maintain our revenue forecasts and incorporate IFRS16-related changes as well as higher net finance costs: normalised EPS reduces by 4.4% in FY19 and 4.0% in FY20.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2017A 166.8 41.7 36.1 147.0 16.5 15.5
2018A 195.1 49.2 41.2 172.8 14.0 17.2
2019E 199.8 49.0 36.8 153.7 15.7 10.9
2020E 209.0 52.5 39.9 166.9 14.5 9.8
Last updated on 16/09/2019
Industry outlook

XP supplies four end-markets: Healthcare, Industrial, Semiconductors and Technology, across Europe, North America and Asia. The Industrial segment is relatively fragmented, but the company sees demand across various applications. The Healthcare business continues to gain market share, with corporate approvals from the major suppliers in place. The Semiconductor segment is the most cyclical, tracking the capex requirements of semiconductor manufacturers.

Last updated on 16/09/2019
Share price graph
Balance sheet
Forecast net debt (£m) 53
Forecast gearing ratio (%) 36
Price performance
Actual 8.5 4.3 (19.3)
Relative* 4.9 3.8 (19.2)
52-week high/low 3090.0p/1965.0p
*% relative to local index
Key management
James Peters Chairman
Duncan Penny CEO
Gavin Griggs Chief Financial Officer & Executive Director

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