News Column

XP Power Reiterates 2014 Revenue Growth Guidance, Warns On Sterling

July 8, 2014

Hana Stewart-Smith

LONDON (Alliance News) - Electronics components company XP Power Ltd Tuesday reiterated its guidance it will grow revenues again in 2014, although it warned that the strengthening of sterling will hit its underlying growth.

In the half-year to end June the company saw revenues up 2% compared to the previous year. However the appreciation of sterling against the US dollar had a "significant" effect as the company primarily trades in dollars. On a constant currency basis revenue rose 9%.

Orders in the first half rose 3%, or 9% on a constant currency basis.

Whilst the weaker dollar has hit revenues, it has lowered the company's cost of sales, which has helped increase XP Power's gross percentage margin. This, combined with improved production volumes at its Chinese and Vietnamese factories, means it expects its first half gross margins to be ahead of the previous year.

XP Power will pay a dividend of 13 pence for the second quarter, up from 12 pence in the previous year.

It said it continued to reduce net debt during the half year, with net debt of GBP1.6 million as at June 30 compared to GBP8.5 million a year before.

The company will issue its interim results July 28.

Shares in XP Power were up 0.9% at 1,508.00 pence early Tuesday.

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Source: Alliance News

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