Last checked at 23 Jan 2009 07:00
23 January 2009 XP Power Limited Trading Update
XP Power, one of the world's leading developers and manufacturers of mission critical power control solutions to the electronics industry, is today issuing an update on trading as guidance for the year ended 31 December 2008.
The board reiterates the guidance given in the Company's trading update issued on 21 November 2008 that trading since the half year has been satisfactory and, as a result, the Board expects to meet market expectations for the year ending 31 December 2008. In addition, following significant investment in the research and development function, the Company is expecting an increase in its own IP revenues which subsequently will help improve the overall gross margin.
Across its key markets - the industrial, technology and healthcare sectors - XP Power's continued investment in research and development has built a pipeline of class leading products which allows it to capitalise on the fundamental and increasing demand for smaller, more efficient and more environmentally friendly power control components.
The Company also announces that due to the strengthening of the US Dollar it has just restructured its banking facilities as it suits the Company to borrow in US Dollars. The Company's senior debt facility of £16 million, which was due to expire in September 2011, and its revolving credit facility of £5 million which expires in September 2009 have been replaced by a single term debt facility of US$36 million which will expire in September 2011. The repayments under this new facility will commence in March 2010. The new facility is priced at 2.00% above LIBOR. The arrangement reflects the bank's confidence in XP Power's cash generative business model.
Duncan Penny, Chief Executive of XP Power, commented "In these difficult times, I am happy to be able to confirm that XP Power is on track for the full year. Looking forward, although the wider economic outlook for the next twelve months is uncertain, the Board is confident that the significant investment made in research and development and manufacturing makes XP Power very competitively placed to capitalise on the commercial opportunities in its different markets."
XP Power expects to release preliminary results for the year ending 31 December2008 on 23 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
Hudson Sandler +44 (0)20 7796 4133
James White/Hugo Jenkins
vendor