Xp Power Regulatory News (XPP)

8 July 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 to the electronics industry, is today issuing atrading update for the quarter ended 30 June 2014. Trading The Group traded in line with the Board's expectations during the first half ofthe year. Group revenues for the six months ended 30 June 2014 increased by 2%from the same period in 2013. The strength of Sterling versus the US Dollar,the Group's principal trading currency, had a significant translation effect inthe period and in constant currency the increase was 9%. Orders for the first half of 2014 were 3% higher than the prior year. Inconstant currency we estimate the increase was 9%. Production volumes at both our Chinese and Vietnamese factories have continuedto increase. While the translation effect from the weaker US Dollar negativelyimpacts the revenue line it has a corresponding positive impact on cost ofsales and the combination of these two factors acts to increase the grossmargin percentage. Given the combined benefit of improved factory loading and the aforementionedforeign exchange impacts, we expect first half gross margins will exceed thoseachieved in the first half of 2013. Financial Position Net debt continued to reduce and was £1.6 million at 30 June 2014 compared to £8.5 million at 30 June 2013. Using the exchange rates prevailing at 30 June2013, net debt at 30 June 2014 would have been £1.8 million. Dividend An increased dividend for the second quarter of 13 pence per share (2013: 12pence per share) will be paid on 10 October 2014 to shareholders on theregister at 5 September 2014. Outlook At the time of our first quarter trading update in April, we reported thatorder intake had been encouraging, reflecting a continuation of the gradualimprovement in trading conditions seen through the second half of 2013. Order intake in the second quarter was robust and we therefore reiterate ourguidance that we would expect to grow revenues again in 2014, although thisunderlying growth is expected to be impacted by the currency translationeffects discussed above. XP will issue its interim results for the six months to 30 June 2014 on 28 July2014. - Ends - Enquiries: XP PowerDuncan Penny, Chief Executive +44 (0)7776 178 018Jonathan Rhodes, Finance Director +44 (0)7500 944 614 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.