XP Power enjoys strong finish to the year

XP Power enjoyed a strong finish to the year, trading in line with directors' expectations as the acceleration in order intake reported in Q3 fed through into robust revenue growth in the final quarter.

"The momentum in order intake continued to strengthen in the fourth quarter," the company said.

Order intake in the fourth quarter of 2016 was £37.1 million compared with £35.0 million in the third quarter and £30.0 million in the fourth quarter of 2015.

Revenues in the fourth quarter of 2016 were £37.1 million compared with £32.3 million in the third quarter and £27.8 million in the fourth quarter of 2015.

Order intake for the twelve months ended 31 December 2016 was £133.5 million, an increase of 21% over 2015, or 9% in constant currency.

Revenues for the twelve months ended 31 December 2016 were £129.8 million, an increase of 18% over 2015, or 7% in constant currency.

FINANCIAL POSITION

Net cash at 31 December 2016 was £3.6 million compared with a net debt position of £3.7 million at 31 December 2015.

DIVIDEND

A dividend of 16 pence per share for the third quarter was paid on 12 January 2017, to shareholders on the register at 16 December 2016.

The recommended dividend for the fourth quarter of 2016 will be announced with the 2016 final results but is not expected to be less than 25 pence per share, representing a minimum total dividend of 70 pence per share for 2016, an increase of 6% over the total dividend of 66 pence per share paid for 2015.

OUTLOOK

"We are encouraged by the strong order intake we have experienced during the second half of 2016. We enter 2017 with positive momentum and therefore expect that we should be able to show further growth in revenues in 2017," the company said.