LONDON (Alliance News) - XP Power Ltd Friday said it had traded in line with expectations in the third quarter of the year, but revenue for the first nine months was flat on the year earlier period at GBP74.8 million as it was hit by the strength of sterling against the US dollar.
In a statement, the electronics power control company said revenue was up 6% at constant currencies.
It said orders over the first nine months of 2014 rose 1% on the year to GBP78.9 million, but the increase at constant currencies was 8%.
"Factory loading continues to be strong. 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 margin percentage," it said.
It said it will pay a 14 pence a share dividend for the third quarter, bringing the total dividend for 2014 so far to 39 pence, up 8% on the year-earlier period.
Its net debt was GBP2.0 million at the end of September, down from GBP3.5 million at the end of 2013.
"While month to month order intake continues to be somewhat variable and lumpy, we are encouraged by the order intake picture for the third quarter as a whole. The strength of the order book will help to underpin revenues in the first half 2015," it said in an outlook statement.
"The group is continuing to take market share as our portfolio of industry-leading power technology products is designed-in to new equipment by our target customers. These design wins will translate to orders as our customers' products enter production," it added.
The company intends to put out a trading update for the full year on January 9.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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Xp Power (XPP)