03/08/2004
Tipped on these pages at 165p, XP Power's share price performance has certainly buoyed spirits. The provider of power supply solutions to the mid-tier electronics industry stormed in with forecast-beating numbers for the half to June, as its key North American market returned to form. Pre-tax profits powered ahead by 156% to £2.3m on turnover up 14% at £33.2m despite the weak US dollar. Earnings rose for the fifth successive half year. XP also reported higher gross margins of 35.2% (33.3%) and healthier free cashflow of £3.2m (£3m). XP attributed its success to the seeking out of new geographic markets in Europe and North America, and to the development of products containing an ever-increasing proportion of its own IP, which helped margins higher. For instance during the first half, over 50% of bookings and revenues came from XP branded products. Significantly, the group's design engineering capabilities were boosted with the February acquisition of the remaining 80% of XP Electronics for £900,000 - XP took a 20% stake in the Hertfordshire-based designer of industrial power supplies back in 2001. Prior to these results, the forecasts in the market suggested profits of £6m on £63.7m sales this year, giving earnings of 20.2p. Although upgrades look very likely, it's time to top-slice your gains - although leave a sufficient stake in to take advantage of further growth at better margins.
| Market cap: | £94.5m |
| PE Forecast: | 23 |
| Share price: | 465p |
| LSE | £29.25m |
152.00p
|
-0.50p
|
|
| Other company articles: |
| 09/08/2007 |
| 13/03/2006 |
| 01/02/2005 |
| 04/10/2004 |
| 03/08/2004 |
Manage Your Finances
Money, tax and benefits : your official guide.
