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good to see the strategy is starting to work, going up market with higher efficiency products has got to be attractive. Can it make another move up in a falling market?
Larry Tracey, the Chairman of power controller manufacturer XP Power, treated himself to 4,000 shares in the company, despite the company last month warning that the global economic environment remains weak for the equipment which they manufacture. Tracey, who joined XP's board 22 years ago, bought himself £47,000-worth of shares at 1,175p each, increasing his stake in the company to 7.97%, equal to more than 1.5m shares. In its April statement the company cautioned investors that it currently anticipates that 2012 will be a flat revenue year following the past two years of strong industry growth.
James Peters, Deputy Chairman of XP Power, the power controller manufacturer, has purchased 7,000 shares less than a week after the firm cautioned over its revenues. Peters, who founded XP in 1988, bought the shares for 1100p. The £77,000 transaction takes Peters' stake in the firm to 2,178,254 shares, equivalent to 11.32%. On April 12th the company announced that group revenues in the three months to March 31st declined by 10% over the same period in 2011, with the weakness most evident in the industrial sector. In constant currency the decline was 11%.
David Hempleman-Adams, a non-executive director of power controller manufacturer XP Power, has purchased two lots of shares less than a week after the firm cautioned over its revenues. The first purchase saw Hempleman-Adams, who joined the firm in 2008, snap up his first round of shares in the firm, buying 5,000 at 1,061.49p. Three days later, on April 16th, he then bought an additional 4,450 shares for 1,057.70p each at a cost of £47,068, taking his total stake in the company to 9,450, or 0.05%.
I would say. I been drinking for a month and how sweet it is. If you read this enjoy the taste of this little gem. Nothing spectacular except a well run company that keeps producting the goods. Nice divident as well. Margins likely to improve with the new manufacturing moving to uptodate facility in vietnam. Good products and fragmented competition.
Larry Tracey, Executive Chairman, commented: "Consistent application of our well-established strategy of moving "up the food chain" into design and manufacture produced another year of record profits and earnings, against a backdrop of economic conditions which deteriorated markedly in the later part of the year. Our strategy and its execution resulted in earnings per share of 106.4p in 2011 (2010: 83.7p), an increase of 27% over 2010. This is a fifth successive year of improvement and another record for the Group. The compound average growth rate of earnings per share has been 27% over the last 5 years and 18% over the last 10 years. Under the leadership of our experienced management team, the new products introduced over the past four years, and manufactured in our new production facilities, are now entering customer production and should ensure that we continue to gain market share. This combination should leave us well placed to further grow earnings and dividends over the next five years."
1Adjusted for amortisation of intangibles associated with acquisitions of £nil million (2010: £0.1 million) The Group's well-established strategy of developing and manufacturing its own range of market leading products produced another year of record profits and earnings per share Bookings decreased by 5% to £98.3 million (2010: £103.4 million) and revenues increased by 13% to £103.6 million (2010: £91.8 million) Increased gross margins of 49.1% (2010: 48.0%) driven by continued expansion of XP's own design revenues which represented £59.2 million or 57% of total revenues (2010: £44.1 million or 48% of total revenues) Thirty eight new products introduced in the period, including an extensive range of high efficiency "Green Power" products Chinese manufacturing facility successfully securing new approved vendor agreements from blue chip customers Second manufacturing site in Vietnam completed on schedule in December 2011 and operations have now commenced Robust earnings and strong cash flows provide basis for an increased total dividend of 45.0p per share for the year up 36% on the prior year Record levels of new product investment and product launches in the year to underpin growth in future years as new customer programmes reach production phase Successful repositioning as a designer and manufacturer leave the Group well positioned to respond to more difficult markets and to continue to take market share
http://www.investegate.co.uk/Article.aspx?id=20120220070000P560C
Dividend A dividend of 11 pence per share for the third quarter will be paid on 10 January 2012 to shareholders on the register at 9 December 2011. The dividend for the fourth quarter of 2011 will be announced with the 2011 final results on 20 February 2011 but, is not expected to be less than 14 pence per share representing a minimum total dividend of 44 pence per share for 2011, a minimum increase of 33% over the total dividend of 33 pence per share paid for 2010. Outlook Design wins in 2011 have continued to be positive and we are pleased with the further headway that has been made in achieving approved or preferred supplier status at new key accounts, but increased macroeconomic uncertainty will present a challenging environment as we enter 2012. Bookings in the last quarter of 2011 from existing programs were soft and customers are generally cautious and are delaying orders. As a supplier to manufacturers of capital goods, we cannot expect to be immune from the effects of lower global end-market growth, nevertheless, XP's successful repositioning as a designer and manufacturer of its own range of market-leading products and the addition of its second manufacturing site providing magnetic capability leave the Group well positioned to respond to these more difficult markets and to continue to take market share. XP Power will announce final results for the 12 months to 31 December 2011 on 20 February 2011.
Trading Update 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 fourth quarter ended 31 December 2011. Trading Revenues for the twelve months ended 31 December 2011 were 13% higher than those achieved in 2010. In constant currency the growth rate was 16%. Trading in the final quarter was characterised by a deterioration in global economic confidence, which impacted on end-user demand in a number of the markets served by our customers. Group revenues, in the three months to 31 December 2011, contracted by 5% over the same period in 2010 as some customers pushed out deliveries. In constant currency the contraction rate was also 5%. This contraction was most pronounced in our North American business. Despite another strong design win performance throughout the year, total bookings in the latter part of 2011 were soft as orders relating to existing programs were reduced against the backdrop of increasing macroeconomic uncertainty. This softness was most evident in the industrial and technology sectors, while healthcare has continued to remain resilient. With no improvement in end market sentiment yet in evidence, we expect further revenue contraction in the first quarter of 2012. Construction of the new Vietnamese manufacturing facility - which commenced in December 2010 - was completed on schedule during December 2011. This new, state of the art facility adds significant additional capacity and geographical diversification to our manufacturing assets, an important consideration for potential customers. We expect to start initial production of magnetic components at the new site during the first quarter of 2012. Financial Position Net debt was £19.0 million at 31 December 2011 compared to £18.4 million at 31 December 2010. Using the exchange rates prevailing at 31 December 2010, net debt at 31 December 2011 would have been £19.4 million.
http://www.investegate.co.uk/Article.aspx?id=20120109070000P2717
'Over half of the revenue should be will be from internally designed and developed power systems, driving operating margins in 2011 of 23.9%. This is 5% increase on the record set in 2011. There is also scope to scale up the operating margin in 2012 when the state of the art facility in Vietnam comes in production in the 1st quarter of the year'. SHARES magazine 13 October 2011
I think the Independent article is one option that i believe is wrong. XP reported revenues growing by 20% and in the previous interim that margins had increased and the dividends have increased in each quarter. The reason for the decline in share price i believe is the change in management. There are not many companies a consistent growth record in both revenues and profits and rated on a p/e 8 PEG .7. Although the growth in revenues will not match last years they are heading for 15% with profits growth of 20%.
XP Power, the London-listed, Singapore-based manufacturer of power control components for the electronics industry, disappointed shareholders with its latest interim management statement yesterday, says the Investment Column in the Independent. Not that there is anything new in this, as shares in XP Power have fallen by about a half in the past seven months against a backdrop of growing concerns about the challenges faced by the global economy. XP Power continued to put a brave face on things yesterday, arguing that the low interest rates that have resulted from tough economic conditions in the West should increase demand for the equipment made by its customers. However, the company conceded that demand for its products would be hit by what it described as "the increasing negativity of global end-market growth forecasts". Although the company's share price has taken a hammering in recent months, the shares are still trading at levels well above their historical average, and the likely slump in the global economy suggests they may have further to fall. We'd keep away, recommends the paper.
Investec reduces target from 2,000p to 1,400p, buy rating kept
In-house products a boon for XP Date: Thursday 16 Jun 2011 LONDON (ShareCast) - Power control components manufacturer XP Power reported a strong performance in trading in the second quarter, with profits boosted by a favourable change in the product mix. For the first six months of the year the group notched up year-on-year group revenue growth of 25%, driven by continuing growth in the proportion of its own design products in its total sales volume. The company said, "new project wins with our own in-house developed products have, despite strong revenue growth, led to orders outpacing revenues by 10% in the year to May. This robust performance gives us confidence in our ability to achieve strong revenue growth for this year." XP Power said its own design products accounted for 53% of revenue in the first quarter of 2011, and this increased to 55% in the first two months of the second quarter. The company believes that this shift will have a positive impact on gross margins. In addition to the trading update, the company said construction work on its new Vietnamese factory continues to progress according to schedule and added that the facility is expected to be completed during the first quarter of 2012. AR
Larry Tracey, Executive Chairman, said: "With the Group's strategic repositioning as a designer and manufacturer now complete, and having spent more than ten years in executive roles on the Board, both James and I believe that now is the right time to look to the future and put in place the management structure for the next phase of growth. Duncan Penny has proved himself a very able CEO since taking up the position in 2003 and he is supported by a strong tier of operational managers throughout the business, all of whom have made significant contributions to the Group's development. This managed succession provides clear opportunities for this core team as we seek to build on the foundations we have laid over the last few years and is being implemented against both a background of strong trading and over a 10 month period to ensure an orderly handover of responsibilities."
Outlook The Group is continuing to increase market share in its key industrial, healthcare and technology sectors. New project wins with our own in-house developed products have, despite strong revenue growth, led to orders outpacing revenues by 10% in the year to May. This robust performance gives us confidence in our ability to achieve strong revenue growth for this year. Furthermore, the record number of new product introductions made in the past two years should underpin continued market share gains in 2012 and 2013 as the associated projects enter production with our customers.
Trading Update 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 second quarter ending 30 June 2011. Trading Trading in the second quarter to date has continued to be strong. Group revenues, for the six months to 30 June 2011, are expected to grow by more than 25% over the same period in 2010. In constant currency the growth rate is expected to be not less than 29%. In addition, we have seen a further favourable change in the product mix during the period, with a continuing growth in the proportion of own design product. Own design product represented 53% of revenue in the first quarter of 2011 and this has increased further to 55% in the first two months of the second quarter, versus 48% of revenue for the year ended 31 December 2010. This will have a positive impact on gross margins in the six months to 30 June 2011. Construction work on our new Vietnamese factory continues to progress to schedule and the facility is expected to be completed during the first quarter of 2012.
http://www.investegate.co.uk/Article.aspx?id=20110616070000P0C2E
XP Power (XPP) upgraded to Buy by Westhouse - target price 1900p
Westhouse Securities initiated coverage on XP Power (XPP), the provider of power supplies, with an "accumulate" recommendation and 1,900p target price. Following recent results that showed revenue and margins up strongly and earnings per share more than doubling, the broker believes the group provides a genuine growth story for investors. That said, even though the share price has risen sharply from 1,000p at the start of the year, Westhouse sees further upside potential. Shares in XP lost 52.5p to 1747.5p.
Nicely ticking up. If you are thinking of selling use a hidden limit. I setup a limit order to sell at £10.42 and the market makers instantly brought the price to £10.40, when I removed the limit the price went back up. Co-incidence? I think not. Anyway, I'm holding, plenty more upside here.
Glad to see this is finally managing to stay above the magic £10, we have officially broken the psychological barrier, a beautifal high of £10.24 and it's only 9:30am ! ;-)
Nice close at £10.10