XP Power


£615.5m market cap

3200p 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

While previously reported issues with an ERP upgrade limited the amount of product XP could ship in Q419, revenues for FY19 came in ahead of our forecast and XP closed the year with a strong order book after an acceleration in demand across all markets in December. Q4 bookings of £58.6m were 30% higher year-on-year and 29% higher on a constant currency basis. This resulted in a book-to-bill of 1.23x for Q4. We have revised our forecasts to reflect both factors, with normalised EPS upgrades of 4.3% in FY19 and 1.5% 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 21.8 20.5
2018A 195.1 49.2 41.2 172.8 18.5 22.8
2019E 194.8 45.1 32.9 137.3 23.3 14.8
2020E 209.0 52.5 39.9 166.8 19.2 13.6
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 18/02/2020
Share price graph
Balance sheet
Forecast net debt (£m) 54.2
Forecast gearing ratio (%) 38
Price performance
Actual (12.1) 19.0 55.3
Relative* (9.1) 16.6 49.0
52-week high/low 3820.0p/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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