Last checked at 6 Oct 2011 07:00
6 October 2011 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 2011.
Trading
Revenues for the nine months ended 30 September 2011 grew by 20% over the same period in 2010. In constant currency the growth rate was 24%.
Construction of the new Vietnamese manufacturing facility is on schedule and is expected to complete during the first quarter of 2012, with initial pre-production runs also expected to commence during the same quarter.
Financial Position
Net debt was £20 million at 30 September 2011 compared to £18 million at 31 December 2010. Using the exchange rates prevailing at 31 December 2010, net debt at 30 September 2011 would have been £21 million.
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. This brings the total dividend for the first three quarters for 2011 to 30 pence per share representing a 43% increase over the 21 pence per share paid in respect of the first three quarters of 2010.
Outlook
Revenue growth for this year is supported by our solid order book which remains robust, despite some recent customer push outs in North America.
Looking further ahead, the dynamic of low interest rates, which should increase demand for the capital equipment manufactured by our customers, is countered by the increasing negativity of global end-market growth forecasts.
We believe that whilst the economic environment will be more challenging in 2012, XP's successful repositioning as a designer and manufacturer of its own range of market-leading products leaves the Group well positioned to continue its record of earnings and dividend growth.
XP Power will issue a trading update for the 12 months to 31 December 2011 on 9January 2012. - 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/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