
Annual Report & Accounts
for the year ended 31 December 2019
XP Power is a leading international provider of essential power control solutions.
We power the world’s critical systems.
To be the first choice power solutions provider delivering the ultimate experience for our customers and our people.
Our progression from a specialist distributor, to designer, to design manufacturer demonstrate our core values in action. This shift demonstrates a clear customer focus and commitment to supporting their needs. We have strengthened our knowledge, acted with speed and flexibility whilst maintaining integrity.
integrity
knowledge
flexibility
speed
Customer focus
Order Intake
(£ millions)
Revenue
(£ millions)
Dividend per share
(Pence)
Adjusted operating profit
(£ millions)
Adjusted diluted earnings per share
(Pence)
01
Exposure to a broad cross section of end markets Industrial Electronics, Healthcare, Technology and Semifab – but with no direct exposure to consumer electronics.
02
A diverse customer base of over 4,500 active customers, with no one customer accounting for more than 10% of revenue.
03
A growing penetration of a global, blue-chip customer base.
04
Powerful customer relationship management tools that allow the efficient management of our customer base, identification of pricing and product trends that enable the development of appropriate, innovative new products.
05
An established broad portfolio of leading “Green” products that operate at high efficiency.
06
Revenue annuity – although design-in cycles are often long, once our power converters are approved for use in our customers’ end equipment, XP Power enjoys a revenue annuity for the lifetime of the customers’ equipment, which is typically seven years
07
Attractive margins and lower capital investment requirements when compared to many manufacturing industries, resulting in strong free cash flow and margins that are amongst the highest in the industry.
08
Progressive Dividend – the business model allows for a progressive dividend, which is paid quarterly.
Every piece of electronic equipment requires a power converter to operate.
semiconductor equipment manufacturing
Technology
Healthcare
industrial electronics
We have made significant progress towards the achievement of our vision of being the first choice power solutions provider, delivering the ultimate experience to our customers and our people.
We delivered a resilient performance in 2019 despite facing a number of challenges. While growth in our Healthcare, Industrial Electronics and Technology markets remained robust, this was offset by a cyclical slowdown in the Semiconductor Equipment Manufacturing market and pressure on gross margins. Despite these headwinds we grew order intake and revenues over prior years, continued to win new designs and made good strategic progress.
JAMES PETERS
Chairman
We continued to make good progress with the execution of our strategy, putting the business on a stronger footing to grow in the future by continuing to improve our product life cycle management procedures and upgrading our processes and systems in our sales organisations in Asia, Europe and North America.
DUNCAN PENNY
Chief Executive Officer
We continue to invest in our business and people, whilst still being able to deliver strong year-on-year profit growth.
GAVIN GRIGGS
Chief Financial Officer