22 February 2010

Corporate News

Annual Results for the year ended 31 December 2009

XP, one of the world's leading developers and manufacturers of critical power control components for the electronics industry, today announces its annual results for the year ended 31 December 2009.

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Highlights

	Year ended	Year ended
	31 December 2009	31 December 2008

Revenue	£67.3m	£69.3m
Gross profit	£30.3m	£30.6m
Gross margin	45.0%	44.2%
Adjusted (*) profit before tax	£8.7m	£8.0m
Adjusted (*) profit after tax	£7.7m	£6.6m
Diluted earnings per share adjusted (*)	40.8p	34.8p
Final dividend per share	12.0p	11.0p
Total dividend per share	22.0p	21.0p

(*) Adjusted for amortisation of intangibles associated with acquisitions of £0.3 million (2008: £0.2 million) and non-cash foreign exchange gain of nil (2008: £2.4 million)

The Group's well-established strategy of developing and manufacturing its own range of market leading products produced record earnings per share for the year
Increased gross margins of 45.0% (2008: 44.2%) driven by continued expansion of in-house developed, XP brand products, which now represent 83% of revenues (2008: 78%)
Revenues from products based on XP's own intellectual property increased to £55.9 million (£53.9 million)
New Chinese manufacturing facility, successfully securing new approved vendor agreements from blue chip customers. Production volumes increased rapidly in Q4 2009
Inventory reduction and strong operating cash flows deliver significant reduction in net debt to £18.7 million (2008: £27.8 million)
Record earnings and strong cash flows provide basis for an increased final dividend of 12.0p per share
Record levels of new product investment and product launches in the year to underpin growth in future years as new customer programmes reach production phase
Current trading encouraging, with most markets now in recovery

Larry Tracey, Executive Chairman, commented:

"Throughout the past two years of economic turmoil, we have increased the level of investment in our products, our people and capital equipment. We start the new decade in a strong position in our industry, which now appears to be recovering rapidly. XP Power's combination of a market leading product portfolio and low cost manufacturing capability should allow shareholders to benefit from above average earnings and dividend growth as the recovery takes hold."

Enquiries:

XP Power (22 February 2010)	+44 (0)20 7638 9571
Larry Tracey, Executive Chairman	+44 (0)7785 387142
James Peters, Deputy Chairman	+44 (0)7785 353066
Duncan Penny, Chief Executive	+65 8322 9520

Citigate Dewe Rogerson	+44 (0)20 7638 9571
Kevin Smith/Ged Brumby

XP designs and manufactures power controllers, the essential hardware component in every piece of electrical equipment that converts power from the electricity grid into the right form for equipment to function.

XP typically designs in power control solutions into the end products of major blue chip OEMs, with a focus on the industrial (circa 40% of sales), healthcare (circa 30% sales) and technology (circa 30% of sales) sectors. Once designed into a program, XP has a revenue annuity over the life cycle of the customer's product which is typically 5 to 7 years depending on the industry sector.

XP has invested in research and development and its own manufacturing facility in China, to develop a range of tailored products based on its own intellectual property that provide its customers with significantly improved functionality and efficiency.

Headquartered in Singapore and listed on the Main Market of the London Stock Exchange since 2000, XP serves a global blue chip customer base from 27 locations in Europe, North America and Asia.

For further information, please visit www.xppower.com

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