Xp Power Regulatory News (XPP)

16 Nov 2009 07:00

16 November 2009 XP Power Limited ("XP Power" or "the Group") Trading Update

XP Power, one of the world's leading developers and manufactuers of critical power control components to the electronics industry, is today issuing an update on trading in line with its normal practice.

Trading since the half year has continued to be resilient, supported by new product introductions and some early signs of an improvement in demand, with a number of customers requesting deliveries ahead of their original schedule and signs of component lead times increasing in the last couple of months. While we believe that this can at least in part be explained by restocking as customers rebuild their inventories and we remain cautious on calling a broader recovery in demand, we are encouraged by this trend.

As a result of this continued resilience, the Group remains on track to meet Board expectations for the year ending 31 December 2009 exceeding the record earnings per share achieved in 2008 (adjusted for an exceptional non cash foreign exchange gain in 2008).

Production volumes at the recently commissioned low cost manufacturing facility in China have continued to increase and we expect to see a steady growth in own-manufactured revenues as we move through 2010. Development of this in-house manufacturing capability is crucial in securing preferred supplier status with larger customers and we were therefore pleased to receive an invitation to become a strategic supplier to a major global healthcare company during the period.

Across its key markets - the industrial, healthcare and technology sectors - XP Power's continued investment in research and development has built a pipeline of best in class products which allows it to capitalise on the fundamental and increasing demand for smaller, more efficient and more environmentally friendly power control components. Having established the largest and freshest product range in our industry, revenue annuities from recently launched products will build over the next few years as customer projects enter production.

Larry Tracey, Executive Chairman of XP Power, commented "Notwithstanding continuing tough economic conditions the Group continues to trade resiliently. New products introduced in 2007 and prior are boosting revenues this year and the accelerated pace of new products introduced in 2008 and 2009 will underpin revenue growth in the next few years as customer production ramps up. The Group's success in repositioning itself as a designer and manufacturer of power converters based on its own intellectual property is enabling it to grow despite tough markets and any improvement in the general economic environment for capital equipment will be an added bonus. Against this background, I am pleased to confirm that we remain on track for the full year which will mean we will exceed the record earnings per share achieved in 2008."

XP expects to release preliminary results for the year ending 31 December 2009in mid February 2009. - 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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