Sales soar 23% at XP Power in Q1
XP Power has reported revenues up 23% to £57.1m in Q1 2021 compared to £49.1m in Q1 2020. Trading in the first quarter of 2021 has been in line with the Board’s expectations, says the company.
Order intake is up 7% on Q1 2020 on a constant currency basis and 1% ahead as reported.
The company says this performance was driven by the continued strength in the Semiconductor Manufacturing Equipment sector and a recovery in the Industrial Technology sector. As expected, Healthcare orders decreased compared to the prior year, due to the exceptional COVID-19 related orders received in Q1 2020 not repeating.
The strong year-on-year revenue growth partially reflects the COVID-19 related extended shutdown of our manufacturing facility in China and the associated supply chain challenges in the prior year.
The book to bill ratio, which tracks the relationship between orders received and completed sales, and which is an indicator of future revenue growth, was 1.29 for the first quarter of 2021 (Q1 2020: 1.49) driven particularly by the demand from Semiconductor Manufacturing Equipment and Industrial Technology customers.
The Group is encouraged by its order intake for the first quarter, providing a strong order book and underpins our confidence in delivering underlying revenue growth for the full year. Overall, we remain positive about the Group’s prospects but are mindful of the potential impact from foreign exchange movements and the ongoing COVID-19 related uncertainty.
Longer term, the Board believes XP Power to be very well positioned to grow ahead of its end markets, supported by its strong cash generation and a robust balance sheet.