12th Jan 2021 10:36
(Alliance News) - XP Power Ltd on Tuesday said it saw an increase in revenue towards the end of 2020 and expects to pay a slightly smaller final dividend compared to the year prior.
The Reading-based power supply manufacturer said fourth quarter revenue increased by 25% to GBP58.8 million from GBP47.2 million a year prior.
Orders in the quarter were down 4.5% year-on-year to GBP55.9 million from GBP58.4 million.
Revenue for the year was up 17% to GBP232.9 million from GBP199.9 million a year before. Orders were up 20% to GBP258.0 million from GBP214.9 million.
XP Power said that profit for 2020 is anticipated to be ahead of expectations, as the exceptional Healthcare demand led to production efficiency gains and improved gross margins.
The fourth-quarter dividend is not expected to be less than 34 pence per share, XP Power said, down from 36p per share a year before. This represents a total minimum dividend for the year of 72p per share, which would be down 21% from 2019's 91p per share.
Going forward, XP Power said: "Order intake for the fourth quarter was positive and the group is performing well, despite the challenges created by Covid-19, and we therefore expect further underlying revenue growth in 2021. Longer term, the group remains well positioned to continue to deliver growth."
Final results for 2020 are due on March 2.
Duncan Penny replaced Gavin Griggs as chief executive officer on January 1, while the search for a new chief financial officer continues. In the meantime, Finance Director Johan Olivier is acting CFO.
XP Power shares were down 1.5% at 5,022.00 pence each in London on Tuesday morning.
By Greg Roxburgh; [email protected]
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