Xp Power Regulatory News (XPP)

8 Nov 2005 07:00

XP Power PLC08 November 2005 8 November 2005 XP Power plc ("XP" or "the Group") Trading Update XP, one of the world's leading providers of power supply solutions to theelectronics industry, is today issuing an update on trading for the year ending31 December 2005. Market conditions in the second half of 2005 have continued to be tough withlacklustre demand in the industrial sector. This has been particularly so in ourmature geographic markets in the UK and Northern California. Demand in NorthernCalifornia has been affected by the slow down in our semiconductor manufacturingsector customers. We believe that revenues from North America will be slightly lower in 2005 thanthose achieved in 2004. However, we expect that this will be compensated for bygrowth in Continental Europe. UK revenues should be approximately the same as in2004. We therefore expect that overall revenues for 2005 will be approximatelythe same as the prior year. We also confirm the guidance given at the time ofour interim statement for 2005; that we consider revenue will be higher in thesecond half of 2005 versus the first half, albeit growth will be modest. We believe that improvement in the Group's gross margins due to better productmix, along with tight cost control will result in both profit before tax andearnings per share being higher in 2005 than 2004. In addition XP is announcing the opening of its office in Shanghai, China. Thenew office will provide logistical and technical support to customers who aremanufacturing in China and will work closely with our manufacturing partners toprovide quality assurance and program management. This is another step thattakes the Group closer to the manufacturing end of the supply chain. XP is also giving guidance regarding the effect of International FinancialReporting Standards (IFRS) on its 2005 results. Under IFRS the Group will nolonger amortise goodwill. Furthermore, International Accounting Standard 38requires us to capitalise qualifying development expenditure and amortise itover its useful life. As a result of this standard the Group capitalised £0.5million of development expenditure in the six months ended 30 June 2005. Itexpects to capitalise an approximate amount of a further £0.4 million in thesecond half of 2005. XP expects to release preliminary results for the year ending 31 December 2005on Tuesday, 7 February 2006. - Ends - Enquiries: XP Power plc 0118 984 5515Larry Tracey, Executive ChairmanJames Peters, Deputy ChairmanDuncan Penny, Chief Executive Officer Weber Shandwick Square Mile 020 7067 0700Nick Dibden or Kevin Smith Notes to editors: XP Power plc provides power supply solutions to the electronics industry. All electronic equipment needs a power supply. Power supplies convert theincoming AC supply into various levels of DC voltages to drive electroniccomponents and sub-assemblies within the end user's equipment. XP Power segmentsits business into Communications, Defence and Avionics, Industrial and Medical.By servicing these markets XP Power provides investors with access to technologyand industrial sectors of the North American and European electronics market. The market is highly fragmented and made up of a large number of small to mediumsized Original Equipment Manufacturers who source standard and modified standardpower supplies from several hundred power supply companies. For further information, please visit www.xppower.com This information is provided by RNS The company news service from the London Stock Exchange