2 XP P o w e r p l c
Business Performance
XP Power has made significant increases
in sales and dividends in 2006. Our
competitive position continues to
improve in our key medical, industrial
and communications markets. We are
making significant progress in developing
commercial relationships with target
customers through our own new
products.
The business delivered earnings per
share of 37.0 pence (2005: 30.6 pence)
on a diluted basis after adjustment for
restructuring charges and amortisation
of intangibles associated with acquisitions.
Basic earnings per share was 32.2 pence
(2005: 30.7 pence). This is the fourth
successive year that we have grown
adjusted diluted earnings per share and
the average compound growth rate over
this period has been 50%.
Strategy
As we move into 2007, XP Power is well
placed to continue to grow its earnings
through the successful implementation
of our focused sales strategy. With the
discontinuation in 2006 of £12 million of
annualised sales of third party lines, the
majority of our products are now our
own IP and are enabling significant
improvements in gross margins.
In 2006 we opened our own joint
venture manufacturing facility in
Kunshan, China. The facility is fully
operational and is expected to reduce
our component material and running
costs, thereby maintaining the increase
in gross margins.
Chairman’s Statement
We are embarking on a
plan that will make our Company
more Asia centric. Larry Tracey, Executive Chairman
“
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Larry Tracey, XP Power Executive Chairman (left) and Jackson Wang, Fortron Source President (centre) along
with local dignitaries at the opening of the Chinese manufacturing facility in May 2006.
