(`XP Power' or `the Group')
Q1 2024 Trading Update
Q1 trading in line with expectations and full year outlook unchanged
Trading
Q1 2024 2023 Change Change in constant currency Order intake (£m) 43.7 61.2 (29)% (27)% Revenue (£m) 64.6 77.9 (17)% (15)% Book-to-bill 0.68x 0.79x (0.11)x
Q2 Q3 Q4 Q1 Trailing 12 months by quarter 2023 2023 2023 2024 Order intake (£m) 54.4 44.2 49.0 43.7 % change vs prior year - constant currency (42)% (54)% (22)% (27)% Revenue (£m) 82.3 75.1 81.1 64.6 % change vs prior year - constant currency 28% (1)% (5)% (15)% Book-to-bill 0.66x 0.59x 0.60x 0.68x
On a constant currency basis, Q1 revenue of £64.6m was 15% lower than last year. Q1 order intake of £43.7m was 27% lower than last year. Sales and order intake in the Semiconductor Manufacturing Equipment sector were at a similar run-rate to that achieved in the second half of 2023. Sales and order intake in the Healthcare and Industrial Technology sectors slowed as customers continued to destock.
Our order book at the end of Q1 was c.£171m.
Financial Position
Net debt at
The Group generated strong cash flow from ongoing inventory reduction and cash preservation measures. We continue to expect the Group's net debt to peak around the mid-year point. The Group's previously announced actions to reduce costs and borrowings are on track and are delivering the benefits expected.
Outlook
Our full year expectations are unchanged. As expected, revenue in Q2 is likely to be slightly lower than Q1 due to ongoing customer destocking, and we continue to expect trading to improve during 2024 as channel stock levels reach equilibrium and as demand for Semiconductor Manufacturing Equipment begins to increase. Order intake in Q2 will provide greater clarity on the timing and trajectory of this improvement.
We are confident that our market positions remain strong and that the Group is well positioned to prosper as our key markets resume their trajectory of healthy long-term growth.
We will announce our Interim Results on
Enquiries:
XP Power Gavin Griggs , Chief Executive Officer +44 (0)118 984 5515Matt Webb , Chief Financial Officer +44 (0)118 984 5515Citigate Dewe Rogerson Kevin Smith/Lucy Gibbs +44 (0)207 638 9571
Headquartered in
For further information, please visit www.xppowerplc.com .