12 April 2012
XP Power Limited
("XP Power" or "the Group")
Interim Management Statement
XP Power, one of the world's leading developers and manufacturers of critical
power control components to the electronics industry, is today issuing an
Interim Management Statement for the quarter ended 31 March 2012.
As discussed in our 2011 Final Results announcement, following comparatively
weak order intake in the final quarter of 2011 we expected a reduction in
revenues in the first quarter. In the event, Group revenues in the three months
to 31 March 2012, declined by 10% over the same period in 2011 with the
weakness most evident in the industrial sector. In constant currency the
decline was 11%.
While the environment for capital goods spending remains subdued, order intake
in the first quarter of 2012 has been stronger than that experienced in the
final quarter of 2011 and we therefore expect stronger revenues in the second
quarter of 2012.
In addition, our product mix has continued to improve, with own design products
representing 60% of revenue in the first quarter of 2012 versus 57% of revenue
for the year ended 31 December 2011.
Our newly commissioned factory in Vietnam commenced production of its first
magnetic components during the first quarter, as planned. As expected, while
the start up costs of Vietnam will negatively impact the gross margins in 2012
we expect that Vietnam should reach a break even position by the end of 2012.
Net debt was GBP18.0 million at 31 March 2012 compared to GBP18.6 million at the
year end. Using the exchange rates prevailing at the year end, net debt at 31
March 2012 would have been GBP18.3 million.
A dividend for the first quarter of 10 pence per share (2011: 9 pence per
share) will be paid on 10 July 2012 to shareholders on the register at 15 June
While customers are placing orders at an increased rate, from the depressed
levels of the fourth quarter 2011, the global economic environment remains weak
for the capital equipment which they manufacture. We currently anticipate 2012
will be a flat revenue year following the past two years of strong industry
XP will issue a trading update for the six months to 30 June 2012 on 9 July
- Ends -
Duncan Penny, Chief Executive +44 (0)7776 178 018
Jonathan Rhodes, Finance Director +44 (0)118 976 5074
Citigate Dewe Rogerson +44 (0)20 7638 9571
Kevin Smith/Jos Bieneman
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 26% sales) and technology (circa 29% 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
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.