Last checked at 12 Apr 2010 07:00
12 April 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 31 March 2010.
Trading
Trading in the first quarter has been robust, as the recovery in our markets noted at the time of the full year results in February has gathered pace. Group revenues, in the three months to 31 March 2010, grew by 10% over the same period in 2009. In constant currency the growth rate was 17%.
The stronger bookings noted in the fourth quarter of 2009 have continued in the first quarter of 2010, driven in part by good underlying growth in new customer programs incorporating new XP products entering production phase. The Group also benefited from continued re-stocking and a change in its customers' purchasing behaviour which is reverting back to established pre-crisis patterns. We see this growing shift from month to month ordering back to six to twelve month order schedules as a good indicator of market conditions which are normalising.
Production volumes at our Kunshan factory continued to increase through the quarter. We were also pleased to pass an audit from a second major international healthcare customer following a successful factory assessment in March 2010.
Financial Position
Net debt was £19.0 million at 31 March 2010 compared to £18.7 million at the year end. Using the exchange rates prevailing at the year end, net debt at 31 March 2010 would have been £17.5 million.
Dividend
The Board has decided to change the Group's dividend payment schedule from a half yearly to a quarterly basis, to increase the attractiveness of the Group's shares to certain investors and smooth cash flows. The first quarterly payment of 6 pence per share will be made on 6 July 2010 to shareholders on the register at 11 June 2010. This first quarterly payment will represent a 20% pro rata increase on the six month interim dividend of 10 pence per share paid in October 2009.
A second quarterly dividend will be paid in October 2010, a third in January 2011 and a final dividend in April 2011.
Outlook
With recovery in its main markets continuing, XP has entered the second quarter of 2010 in good shape. The rate of growth in revenue should accelerate in the second quarter as further customer programmes enter production and as conditions continue to normalise across our core Healthcare, Industrial and Technology market segments. Actions taken in the second half of last year to increase production capacity and component stock position us well to satisfy our growing customer demand for power converters as we move through the year.
XP will issue a trading update for the six months to 30 June 2010 on 5 July2010. - 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.
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