Last checked at 9 Oct 2012 07:00
9 October 2012 XP Power Limited ("XP Power" or "the Group") Interim Management Statement
XP Power, a world leading developer and manufacturer of critical power control components to the electronics industry, is today issuing an Interim Management Statement for the quarter ended 30 September 2012.
Trading
Revenues for the nine months ended 30 September 2012 declined by 11% over the same period in 2011. In constant currency the rate of decline was 12%.
While the trading environment remains challenging, order intake continues to be above the low levels experienced in the later part of 2011. We therefore expect a modest sequential improvement in second half revenues as these enter production in the fourth quarter, with a corresponding improvement in gross margins due to higher factory utilisation.
Financial Position
Net debt was £14.0 million at 30 September 2012 compared to £18.6 million at 31 December 2011. Using the exchange rates prevailing at 31 December 2011, net debt at 30 September 2012 would have been £14.5 million.
Dividend
A dividend of 12 pence per share for the third quarter will be paid on 10 January 2013 to shareholders on the register at 14 December 2012. This brings the total dividend for the first three quarters of 2012 to 33 pence per share representing a 10% increase over the 30 pence per share paid in respect of the first three quarters of 2011.
Outlook
Global demand for the capital equipment manufactured by our customers remains subdued against a mixed macroeconomic background and despite interest rates remaining at historically low levels.
At some point we expect companies to take advantage of the low cost of funds and invest in new equipment incorporating the latest technologies to improve their productivity. In the interim, we will continue to press for further market share gains from our portfolio of market-leading power technology products.
XP Power will issue a trading update for the 12 months to 31 December 2012 on10 January 2013. - Ends - Enquiries:XP Power
Duncan 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 40% of sales), healthcare (circa 30% sales) and technology (circa 30% 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 and efficiency.
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.
XLON