XP Power's Q3 revenue rises due to increased component orders

XP Power, a manufacturer of power control components to the electronics industry, increased third quarter revenues while trading in line with expectations for the full-year.

In a trading update for the quarter ended 30 September, the company reported a 13% rise in revenue to £92.6m, compared to the same period last year, or a 5% rise on a constant currency basis.

Third quarter orders were boosted as fourth quarter customer orders were brought forward in September, rising 43% to £34.2m, which exceeded the previous record of £31.3m in the second quarter due to a return to growth in the North American markets.

While orders for the nine months ended 30 September were “encouraging” at £95.8m, 19% higher than last year or an 11% rise in constant currency.

Net debt widened by £2.2m at end of September compared to £6 in June.

The London-listed company said despite the challenging macroeconomic backdrop, it was reassured by the momentum in orders during the third quarter and expects trading to be in line with the company’s expectations for the full year.

"We remain encouraged by new design wins and believe the group is continuing to take market share as its portfolio of industry-leading power technology products is increasingly designed-in to new equipment by our target customers. These design wins will translate to orders as our customers’ projects move to production phase over the coming years.”

A dividend of 16p per share will be paid on 12 January 2017 which will bring the total dividend for the first three quarters to 45p per share, a 7% from 2015.