XP Power’s net debt stood at £50.4m for H1 2019, whilst cash generated from operations grew 59% to £25.2m due to the improved working capital management.
XP Power’s healthcare sector reported strong revenue growth, up 8%, and both their industrial and technology sectors were up 13% and 12% respectively. On the other hand, the semiconductor manufacturing equipment sector reported a slowdown of 34%. Dividend for the period grew 6% to 35.0p per share and adjusted diluted earnings per share were down 17% to 69.2p.
XP Power’s Vietnamese manufacturing facility’s expansion enables the group to provide its US customers with products that are not subject to the 25% Section 301 tariffs.
James Peters, Chairman of XP Power, commented: “We are well-positioned to take further share and will benefit from any recovery in the semiconductor equipment manufacturing sector. While we remain mindful of potential short-term risks and macroeconomic challenges, we continue to expect an improved revenue performance in the second half of the year as a result of the increase in our order book since the year-end. With a proven strategy, strong design win momentum and an expanded product portfolio, the Board remains positive regarding the future of the group.”