Last checked at 10 Jan 2011 07:00
10 January 2011 XP Power Limited ("XP Power" or "the Group") Trading Update
XP Power, one of the world's leading developers and manufacturers of critical power control components to the electronics industry, is today issuing a trading update for the fourth quarter ended 31 December 2010.
Trading
Customer demand remained robust in the period and the ongoing evolution of the Group's business model further increased the proportion of higher margin, own design/own manufactured products in the sales mix to deliver a significant improvement in performance. Trading in the fourth quarter was strong, driven by further market share gains as more new customer programmes entered production, along with growth in existing programme volumes.
Group revenues, in the three months to 31 December 2010, grew by 47% over the same period in 2009. In constant currency the growth rate was 43%. Growth was broadly based across all sectors and territories, but with a notable improvement in North America.
Revenues for the twelve months ended 31 December 2010 are 36% higher than those achieved in 2009. In constant currency the growth rate was also 36%. Consequently, the Board expects that Group profit before tax for the twelve months ended 31 December 2010 will exceed current market expectations.
Production volumes at our Chinese manufacturing facility continued to increase as the proportion of own design/own manufactured products continued to grow; the factory exited 2010 operating in excess of 50% of capacity.
Construction of the new Vietnamese manufacturing facility started in December 2010 as planned. The Vietnam site has sufficient space for the Group to build two factories equivalent to the size of its existing China factory in a phased approach as demand dictates. Phase One, which will more than double our existing manufacturing capacity, is expected to be completed by early 2012. The addition of a third factory in Phase Two will more than triple our existing manufacturing capacity.
Financial Position
Net debt was £19.3 million at 31 December 2010 compared to £18.6 million at 31 December 2009. Using the exchange rates prevailing at 31 December 2009, net debt at 31 December 2010 would have been £18.5 million.
During the period, the Group renewed its term debt facility until September 2014.
Dividend
A dividend of 8 pence per share for the third quarter was 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, as previously reported, is not expected to be less than 8 pence per share representing a minimum total dividend of 29 pence per share for 2010, a minimum increase of 32% over the total dividend of 22 pence per share paid in 2009.
Outlook
The Group has entered the new financial year with its order books at record levels and remains well placed to deliver further revenue and earnings growth in 2011.
XP Power will announce final results for the 12 months to 31 December 2010 on21 February 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.
vendor