XP Power (LSE:XPP) has emerged as a stunning momentum play in recent times, the share adding more than 40% in value over the past six months.
The power control component builder gained 8% on Monday alone following the release of exceptional third quarter numbers, meaning the stock is now dealing at record tops above £30 per share. And I believe there is much, much more to come from the Singapore-based business.
XP Power has acquired radio frequency power supply provider Comdel for $23m
The purchase was funded with a new revolving credit facility of US$40m, with a $20m additional accordion option.
The funding will also assist the companys inorganic growth strategy, XP Power said.
"The acquisition will enable us to provide our existing customers with a comprehensive product offering in RF power, a market segment with robust demand fundamentals but one in which we did not previously specialise," XP Power chief executive Duncan Penny said.
Shares of XP Power (LSE:XPP) are 6% higher at 2,625p late-morning after the company reported "a very strong first half." It also said: "The board now anticipates the group's performance for the full year will be comfortably ahead of its existing expectations."