Xp Power Regulatory News (XPP)

10 January 2014 XP Power Limited ("XP Power" or "the Group") Trading Update XP Power, one of the world's leading developers and manufacturers of criticalpower control components for the electronics industry, is today issuing atrading update for the fourth quarter ended 31 December 2013. Trading Revenues for the twelve months ended 31 December 2013 were 8% higher than thoseachieved in 2012. In constant currency revenues increased by 6%. The encouraging signs of recovering global demand for the capital equipmentmanufactured by our customers that were highlighted in our third quarterinterim management statement, continued into the fourth quarter. This positivetrend, in conjunction with improved factory loading at our Chinese facility anda positive contribution from our magnetics facility in Vietnam, underpin asequential improvement in gross margins in the second half of the year, asexpected. Financial Position Net debt was £3.7 million at 31 December 2013 compared to £10.6 million at 31December 2012. Using the exchange rates prevailing at 31 December 2012, netdebt at 31 December 2013 would also have been £3.7 million. Dividend A dividend of 13 pence per share for the third quarter will be paid today, 10January 2014, to shareholders on the register at 13 December 2013. The recommended dividend for the fourth quarter of 2013 will be announced withthe 2013 final results on 24 February 2014 but is not expected to be less than17 pence per share, representing a minimum total dividend of 53 pence per sharefor 2013, an increase of 6% over the total dividend of 50 pence per share paidfor 2012. Outlook XP Power has a long-established strategy of targeting blue chip customers withstrong leadership positions in their respective markets, and whose insistenceon vetting their suppliers' design and manufacturing facilities acts as asignificant barrier to entry to many of the Group's potential competitors. Thisstrategy remained successful in 2013 and we believe that we continued to takemarket share as a result. Furthermore, the macro-economic outlook for ourcustomers appears to have slightly improved during the second half of 2013 andwe consider that we are well placed to benefit from this improvement. Orders received in 2013 were £103.7 million compared to £96.6 million in 2012.We enter 2014 with positive momentum and we therefore expect that we should beable to show further modest growth in revenues in 2014. XP Power will announce final results for the 12 months to 31 December 2013 on24 February 2014. - Ends - Enquiries: XP PowerDuncan Penny, Chief Executive +44 (0)118 976 5086Jonathan Rhodes, Finance Director +44 (0)118 976 5074 Citigate Dewe Rogerson +44 (0)20 7638 9571Kevin Smith/Jos Bieneman Note to editors XP designs and manufactures power controllers, the essential hardware componentin every piece of electrical equipment that converts the power from theelectricity grid into the right form for the equipment to function. XP typically designs in power control solutions into the end products of majorblue chip OEMs, with a focus on the industrial (circa 45% of sales), healthcare(circa 30% sales) and technology (circa 25% of sales) sectors. Once designedinto a program, XP has a revenue annuity over the life cycle of the customer'sproduct which is typically 5 to 7 years depending on the industry sector. XP has invested in research and development and its own manufacturing facilityin China, to develop a range of tailored products based on its own intellectualproperty that provide its customers with significantly improved functionalityand efficiency. Headquartered in Singapore and listed on the Main Market of the London StockExchange since 2000, XP serves a global blue chip customer base from 27locations in Europe, North America and Asia.