8 July 2014XP Power Limited
("XP Power" or "the Group")
XP Power, one of the world's leading developers and manufacturers of critical
power control components to the electronics industry, is today issuing a
trading update for the quarter ended 30 June 2014.
The Group traded in line with the Board's expectations during the first half of
the year. Group revenues for the six months ended 30 June 2014 increased by 2%
from the same period in 2013. The strength of Sterling versus the US Dollar,
the Group's principal trading currency, had a significant translation effect in
the period and in constant currency the increase was 9%.
Orders for the first half of 2014 were 3% higher than the prior year. In
constant currency we estimate the increase was 9%.
Production volumes at both our Chinese and Vietnamese factories have continued
to increase. While the translation effect from the weaker US Dollar negatively
impacts the revenue line it has a corresponding positive impact on cost of
sales and the combination of these two factors acts to increase the gross
Given the combined benefit of improved factory loading and the aforementioned
foreign exchange impacts, we expect first half gross margins will exceed those
achieved in the first half of 2013.
Net debt continued to reduce and was £1.6 million at 30 June 2014 compared to £
8.5 million at 30 June 2013. Using the exchange rates prevailing at 30 June
2013, net debt at 30 June 2014 would have been £1.8 million.
An increased dividend for the second quarter of 13 pence per share (2013: 12
pence per share) will be paid on 10 October 2014 to shareholders on the
register at 5 September 2014.
At the time of our first quarter trading update in April, we reported that
order intake had been encouraging, reflecting a continuation of the gradual
improvement in trading conditions seen through the second half of 2013.
Order intake in the second quarter was robust and we therefore reiterate our
guidance that we would expect to grow revenues again in 2014, although this
underlying growth is expected to be impacted by the currency translation
effects discussed above.
XP will issue its interim results for the six months to 30 June 2014 on 28 July
- Ends -
XP PowerDuncan Penny, Chief Executive +44 (0)7776 178 018
Jonathan Rhodes, Finance Director +44 (0)7500 944 614
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.