In this interview, CEO Duncan Penny and CFO Gavin Griggs discuss XP Power’s H120 results. Gavin discusses the impact of COVID-19 on the company, noting that it started feeling the effects as early as January at its Chinese manufacturing facility. The company has focused on keeping staff safe, ensuring supply for customers, and preserving cash. Duncan highlights the strong demand from healthcare customers during H1 for equipment used in the ICU. At the same time, the semiconductor sector, which started to recover in Q419, continues to show strong demand. Running through the company’s financial performance, Gavin outlines the growth in revenues and orders over the year and the continued investment in the business while reducing net debt. Duncan discusses the benefit of the company’s Vietnam manufacturing facility, supporting continued supply while the China facility was closed and providing an alternative for customers who want to avoid sourcing product from China. Noting that XP Power has not furloughed any staff and has taken no government assistance in the UK, Gavin explains that the company will reinstate the dividend from Q2. With a record backlog at the end of H1, Duncan outlines expectations for revenue growth in H2.
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.