10 January 2014XP Power Limited
("XP Power" or "the Group")
XP Power, one of the world's leading developers and manufacturers of critical
power control components for the electronics industry, is today issuing a
trading update for the fourth quarter ended 31 December 2013.
Revenues for the twelve months ended 31 December 2013 were 8% higher than those
achieved in 2012. In constant currency revenues increased by 6%.
The encouraging signs of recovering global demand for the capital equipment
manufactured by our customers that were highlighted in our third quarter
interim management statement, continued into the fourth quarter. This positive
trend, in conjunction with improved factory loading at our Chinese facility and
a positive contribution from our magnetics facility in Vietnam, underpin a
sequential improvement in gross margins in the second half of the year, as
Net debt was £3.7 million at 31 December 2013 compared to £10.6 million at 31
December 2012. Using the exchange rates prevailing at 31 December 2012, net
debt at 31 December 2013 would also have been £3.7 million.
A dividend of 13 pence per share for the third quarter will be paid today, 10
January 2014, to shareholders on the register at 13 December 2013.
The recommended dividend for the fourth quarter of 2013 will be announced with
the 2013 final results on 24 February 2014 but is not expected to be less than
17 pence per share, representing a minimum total dividend of 53 pence per share
for 2013, an increase of 6% over the total dividend of 50 pence per share paid
XP Power has a long-established strategy of targeting blue chip customers with
strong leadership positions in their respective markets, and whose insistence
on vetting their suppliers' design and manufacturing facilities acts as a
significant barrier to entry to many of the Group's potential competitors. This
strategy remained successful in 2013 and we believe that we continued to take
market share as a result. Furthermore, the macro-economic outlook for our
customers appears to have slightly improved during the second half of 2013 and
we consider that we are well placed to benefit from this improvement.
Orders received in 2013 were £103.7 million compared to £96.6 million in 2012.
We enter 2014 with positive momentum and we therefore expect that we should be
able to show further modest growth in revenues in 2014.
XP Power will announce final results for the 12 months to 31 December 2013 on
24 February 2014.
- Ends -
XP PowerDuncan Penny, Chief Executive +44 (0)118 976 5086
Jonathan Rhodes, Finance Director +44 (0)118 976 5074
Citigate Dewe Rogerson +44 (0)20 7638 9571
Kevin Smith/Jos Bieneman
Note to editors
XP designs and manufactures power controllers, the essential hardware component
in every piece of electrical equipment that converts the power from the
electricity grid into the right form for the equipment to function.
XP typically designs in power control solutions into the end products of major
blue chip OEMs, with a focus on the industrial (circa 45% of sales), healthcare
(circa 30% sales) and technology (circa 25% of sales) sectors. Once designed
into a program, XP has a revenue annuity over the life cycle of the customer's
product which is typically 5 to 7 years depending on the industry sector.
XP has invested in research and development and its own manufacturing facility
in China, to develop a range of tailored products based on its own intellectual
property that provide its customers with significantly improved functionality
Headquartered in Singapore and listed on the Main Market of the London Stock
Exchange since 2000, XP serves a global blue chip customer base from 27
locations in Europe, North America and Asia.