XP Power (XPP) a long standing holding in the Compound Income Scores Portfolio (CISP) has announced final result for the year to December 2017 today. These were good as expected given their previous updates, but did still came in slightly ahead of forecasts at the earnings and dividend lines. While James Peters, the Chairman of XP Power struck a reasonably confident note tinged with some realism when he said: ..."Although we cannot be immune from all external economic shocks resulting from cyclicality in the capital equipment markets we serve, we are optimistic regarding our prospects for 2018.”
Thus they seem set fair for another reasonable year and if you want to read more about the results I suggest you look them up on your favoured news provider. In addition there was a good sponsored brokers note from Edison with an update on the back of the results which included some upgrades from them given the results beat their forecasts and the outlook seems fine. Their forecasts for this year of 158.9p with an 82p dividend may, they suggest , still be conservative with the possibility of upgrades as the year progresses. Nevertheless at the current 3180p price, this does leave them on just under 20x with a 2.6% yield, which looks fairly full but is probably deserved given the quality of their business and the steady delivery they have offered over recent years and their on going growth and investment plans.
On the charts I note a gap the 200 day moving average and a gap on the chart from their previous positive update at around 3000p which could offer a good entry point if they should get down there on any more market weakness or profit taking. I say that because this one does tend to move in fits and starts with strong rises punctuated by some long sideways pauses, as seen a couple of times in the last year. It does however continue to score reasonably well on the Compound Income Scores and will therefore remain in the portfolio.
That's all I have time for today but, weather permitting, I hope to be back tomorrow with a month end update on the CISP and the timing indicators for the UK Market. So hope to see you back here then and mind how you go in the snow and keep warm if you can.