Xp Power Regulatory News (XPP)

4 Oct 2010 07:00

4 October 2010 XP Power Limited ("XP Power" or "the Group") Interim Management Statement

XP Power, one of the world's leading developers and manufactuers of critical power control components to the electronics industry, is today issuing an Interim Management Statement for the quarter ended 30 September 2010.

Trading

The evolution of the Group to an own design/own manufactured business model is continuing to drive a significant improvement in performance, as control over the manufacturing process delivers both higher margins and more rapid customer response times. Trading in the third quarter has continued to be strong, driven by further market share gains as customer programmes, incorporating recently launched XP products, entered production phase. Group revenues, in the three months to 30 September 2010, grew by 52% over the same period in 2009 with gains across all market sectors in North America, Europe and Asia. In constant currency the growth rate was 44%.

Revenues for the nine months ended 30 September 2010 grew by 32% over the same period in 2009. In constant currency the growth rate was 33%.

Capacity utilisation at the Chinese manufacturing facility continues to increase as volumes of own design/own manufactured products continue to grow.

Progression of the new Vietnamese manufacturing facility is now well underway and it is expected that planning consent will be granted in October, with construction due to commence before the end of the year.

Financial Position

Net debt was £19 million at 30 September 2010 compared to £21 million at 30 September 2009. Using the exchange rates prevailing at 30 September 2009, net debt at 30 September 2010 would have been £18 million.

Dividend

A dividend of 8 pence per share for the third quarter will be paid on 7 January 2011 to shareholders on the register at 10 December 2010.

The dividend for the fourth quarter of 2010 will be announced with the 2010 final results on 21 February 2011 but is not expected to be less than 8 pence per share.

Together these two quarterly dividends are expected to represent a minimum 33% increase on the final dividend of 12.0p paid in respect of the 2009 financial year.

Outlook

The Group's order book remains at record levels, with revenues for calendar 2010 now expected to be 30% ahead of 2009. The Group's focus is now on ensuring continued earnings and revenue growth through 2011 and 2012.

XP Power will issue a trading update for the 12 months to 31 December 2010 on10 January 2011. - Ends - Enquiries:XP Power

Larry Tracey, Executive Chairman +44 (0)7785 387142

James Peters, Deputy Chairman +44 (0)7785 353066

Duncan Penny, Chief Executive +65 8322 9520

Citigate Dewe Rogerson +44 (0)20 7638 9571

Kevin Smith/Ged Brumby

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.