Xp Power Regulatory News (XPP)

9 July 2013 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 to the electronics industry, is today issuing atrading update for the quarter ended 30 June 2013. Trading The Group traded in line with the Board's expectations during the first half.Group revenues for the six months ended 30 June 2013 increased by 5% from thesame period in 2012. In constant currency the increase was 4%. The environment for capital goods spending remains challenging. Orders for thefirst half of 2013 were flat versus the first half of 2012 but increased by 7%over the second half of 2012. Production volumes at our new factory in Vietnam have now increased such thatit is supplying approximately half of our monthly demand for the magneticcomponents used within our power converters. At this level of production theVietnam facility has reached a break even position and so is no longer reducingour margins. Given the combined effects of improved factory loading and reduced start-upcosts from our new Vietnam facility, we expect first half gross margins willexceed those achieved in the first half of 2012. Financial Position Net debt was £8.5 million at 30 June 2013 compared to £15.0 million at 30 June2012. Using the exchange rates prevailing at 30 June 2012, net debt at 30 June2013 would have also been £8.5 million. Dividend An increased dividend for the second quarter of 12 pence per share (2012: 11pence per share) will be paid on 10 October 2013 to shareholders on theregister at 6 September 2013. Foreign Exchange Given our exposure to the US Dollar, the continued weakness in the Sterling/USDollar exchange rate since the beginning of the year will result in slightlyhigher revenues due to translation. However, the effects on operating profitwill not be significantly different as a high proportion of our cost of salesand operating expenses are also denominated in US Dollars. Outlook At the time of our last trading update in April, we reported that the globalcapital goods markets remained subdued. While this continues to be the case weare encouraged by the progress we are making as we continue to take marketshare. XP will issue its interim statement for the six months to 30 June 2013 on 29July 2013. - Ends - Enquiries: XP PowerDuncan Penny, Chief Executive +44 (0)7776 178 018Jonathan 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 26% sales) and technology (circa 29% 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.