10 January 2014
XP Power, one of the world's leading developers and manufacturers of critical power control components for the electronics industry, is today issuing a trading update for the fourth quarter ended 31 December 2013.
Revenues for the twelve months ended 31 December 2013 were 8% higher than those achieved in 2012. In constant currency revenues increased by 6%.
The encouraging signs of recovering global demand for the capital equipment manufactured by our customers that were highlighted in our third quarter interim management statement, continued into the fourth quarter. This positive trend, in conjunction with improved factory loading at our Chinese facility and a positive contribution from our magnetics facility in Vietnam, underpin a sequential improvement in gross margins in the second half of the year, as expected.
Net debt was £3.7 million at 31 December 2013 compared to £10.6 million at 31 December 2012. Using the exchange rates prevailing at 31 December 2012, net debt at 31 December 2013 would also have been £3.7 million.
A dividend of 13 pence per share for the third quarter will be paid today, 10 January 2014, to shareholders on the register at 13 December 2013.
The recommended dividend for the fourth quarter of 2013 will be announced with the 2013 final results on 24 February 2014 but is not expected to be less than 17 pence per share, representing a minimum total dividend of 53 pence per share for 2013, an increase of 6% over the total dividend of 50 pence per share paid for 2012.
XP Power has a long-established strategy of targeting blue chip customers with strong leadership positions in their respective markets, and whose insistence on vetting their suppliers' design and manufacturing facilities acts as a significant barrier to entry to many of the Group's potential competitors. This strategy remained successful in 2013 and we believe that we continued to take market share as a result. Furthermore, the macro-economic outlook for our customers appears to have slightly improved during the second half of 2013 and we consider that we are well placed to benefit from this improvement.
Orders received in 2013 were £103.7 million compared to £96.6 million in 2012. We enter 2014 with positive momentum and we therefore expect that we should be able to show further modest growth in revenues in 2014.
XP Power will announce final results for the 12 months to 31 December 2013 on 24 February 2014.
|Duncan Penny, Chief Executive||+44 (0)118 976 5086|
|Jonathan Rhodes, Finance Director||+44 (0)118 976 5074|
|Citigate Dewe Rogerson|
|Kevin Smith/Jos Bieneman||+44 (0)20 7638 9571|
Note to editors
XP designs and manufactures power controllers, the essential hardware component in every piece of electrical equipment that converts the power from the electricity grid into the right form for the 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 45% of sales), healthcare (circa 30% sales) and technology (circa 25% 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.