Xp Power Regulatory News (XPP)

6 Apr 2011 07:00

6 April 2011 XP Power Limited ("XP Power" or "the Group") Interim Management Statement

XP Power, one of the world's leading developers and manufacturers of critical power control components to the electronics industry, is today issuing an Interim Management Statement for the quarter ended 31 March 2011.

Trading

Trading in the first quarter has continued to be strong. Group revenues, in the three months to 31 March 2011, grew by 37% over the same period in 2010. In constant currency the growth rate was 36%.

In addition, our product mix has continued to improve. Own design/own manufacture represented 53% of revenue in the first quarter of 2011 versus 48% of revenue for the year ended 31 December 2010.

Construction work on our new Vietnamese factory is progressing according to schedule and the facility is expected to be completed during the first quarter of 2012.

Japanese Components

The impact of last month's earthquake in Japan on the global electronic component supply chain has been the subject of significant media comment in recent weeks. While we do use some Japanese sourced components in our products, these are largely limited to capacitors and connectors, of which we routinely retain high levels of safety inventories. Therefore, the Group does not currently anticipate any material affect at this stage due to shortages of Japanese components but is continuing to monitor the situation closely.

Financial Position

Net debt was £21.4 million at 31 March 2011 compared to £18.4 million at the year end. Using the exchange rates prevailing at the year end, net debt at 31 March 2011 would have been £22.6 million.

Dividend

A dividend for the first quarter of 9 pence per share (2010: 6 pence per share) will be paid on 7 July 2011 to shareholders on the register at 15 June 2011.

Environmental

XP Power is pleased to announce that it has further strengthened its environmental credentials with its acceptance as a Full Member of the Electronic Industry Citizenship Coalition (EICC).

The EICC is a collaboration of leading electronics companies that promotes an industry code of conduct for global supply chains to improve working and environmental conditions.

Outlook

XP has made a strong start to the year, with the Group continuing to increase its market share in its key industrial, healthcare and technology sectors. New project wins with our own in-house developed products have led to orders outpacing revenues by 20% in the first quarter. This 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.

XP will issue a trading update for the six months to 30 June 2011 on 11 July2011. - 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 50% of sales), healthcare (circa 30% sales) and technology (circa 20% 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.