Interim Management Statement
10 October 2014
XP Power, a world leading developer and manufacturer of critical power control sub-assemblies for the electronics industry, is today issuing an Interim Management Statement for the quarter ended 30 September 2014.
The Group traded in line with the Board's expectations during the third quarter of the year. Revenues for the nine months ended 30 September 2014 were £74.8 million which is level with the same period in the prior year, reflecting the strength of Sterling versus the US Dollar, the Group's principal trading currency, which continued to have a significant translation effect in the period. In constant currency the increase in revenues was 6%.
Orders for the nine months ended 30 September 2014 were £78.9 million which was 1% higher than the prior year. In constant currency we estimate the increase was 8%.
Factory loading continues to be strong. While the translation effect from the weaker US Dollar negatively impacts the revenue line it has a corresponding positive impact on cost of sales and the combination of these two factors acts to increase the gross margin percentage.
Net debt was £2.0 million at 30 September 2014 compared to £3.5 million at 31 December 2013. Using the exchange rates prevailing at 31 December 2013, net debt at 30 September 2014 was also £2.0 million.
A dividend for the third quarter of 14 pence per share will be paid on 9 January 2015 to shareholders on the register at 12 December 2014. This brings the total dividend for the first three quarters of 2014 to 39 pence per share, representing an 8% increase over the 36 pence per share paid in respect of the first three quarters of 2013.
While month to month order intake continues to be somewhat variable and lumpy, we are encouraged by the order intake picture for the third quarter as a whole. The strength of the order book will help to underpin revenues in the first half 2015.
The Group is continuing to take market share as our portfolio of industry-leading power technology products is designed-in to new equipment by our target customers. These design wins will translate to orders as our customers' products enter production.
XP Power will issue a trading update for the 12 months to 31 December 2014 on 9 January 2015.
|Duncan Penny, Chief Executive||+44 (0)7776 178 018|
|Jonathan Rhodes, Finance Director||+44 (0)7500 944 614|
|Citigate Dewe Rogerson|
|Kevin Smith/Jos Bieneman||+44 (0)20 7638 9571|
Note to editors
XP designs and manufactures power controllers, the essential sub assembly 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 facilities in China and Vietnam, to develop a range of up to date 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 Asia, Europe and North America.