2nd Aug 2021 09:22
(Alliance News) - XP Power Ltd on Monday announced it will more than double its interim dividend payout following a surging profit performance in its first half.
The Reading, Berkshire-based power supply manufacturer declared a second quarter dividend increase of 5.5% to 19 pence from 18p in the prior year period. Together with the first quarter dividend, this brings the total first half payout to 37p per share, more than double the 18p in the pandemic-disrupted prior-year period.
XP Power shares were up 1.0% at 5,190.00 pence each in London on Monday morning.
First half pretax profit for the six months ended June 30 grew 59% year-on-year to GBP16.4 million from GBP10.3 million, which XP attributed to rising revenue and a higher profit margin.
Revenue rose 14% to GBP119.9 million from GBP105.1 million. Revenue was boosted by record order intake, which rose up 17% at constant currency and 8% on a reported basis to GBP157.6 million from GBP145.8 million a year before.
Growth was driven by continued strength in XP Power's Semiconductor Manufacturing Equipment sector and a recovery in Industrial Technology, offset by the expected normalisation in Healthcare after exceptional Covid-19 related performance in 2020, XP noted.
"We maintained our strong momentum in the first half, building on our robust performance in 2020 to deliver another period of significant revenue and profit growth," commented Chair James Peters.
Looking ahead, XP said it enters the second half with a record order book of GBP150.3 million, having risen 21% in the past six months.
Trading for the first half was ahead of original expectations and the company now expects full-year trading to be "modestly" ahead of analyst consensus. The current range of forecasts for adjusted pretax profit for 2021 is GBP41.5 million to GBP47.0 million, with a consensus of GBP44.6 million.
By Will Paige; [email protected]
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