REG-XP Power Ltd: Trading Statement <Origin Href="QuoteRef">XPP.L</Origin>

XP PowerAnnouncement

08/01/2016 07:10

8 January 2016

                               XP Power Limited                                
                          ("XP Power" or "the Group")                          
                                                                               
                                Trading Update                                 

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 2015.

Trading


The Group traded in line with the Board's expectations during the fourth
quarter of the year.

Revenues for the twelve months ended 31 December 2015 were £109.5 million and
8% ahead of those reported in 2014, or 4% in constant currency.

The order intake for the twelve months ended 31 December 2015 was £110.4
million and 5% ahead of that reported in 2014, or 1% in constant currency.

On 25 November 2015 the Group announced the acquisition of the business and
assets of EMCO High Voltage Corporation ("EMCO"), a designer and manufacturer
of high voltage power modules based in northern California. The integration of
EMCO is proceeding well and our sales teams are already identifying new
customer opportunities for EMCO's high voltage modules. Orders for EMCO
products from its existing customers were strong in December which bodes well
for 2016.

Order intake in the fourth quarter in North America, excluding EMCO, of US$22.2
million was much more encouraging than the US$17.3 million experienced in the
third quarter. We are also encouraged by the total Group order intake for the
fourth quarter which was £30.0 million.

Financial Position


Following the acquisition of the assets and business of EMCO for US$12 million,
net debt was £3.5 million at 31 December 2015 compared to a net cash position
of £1.3 million at 31 December 2014.

Dividend

A dividend of 15 pence per share for the third quarter will be paid on 14
January 2016, to shareholders on the register at 18 December 2015.

The recommended dividend for the fourth quarter of 2015 will be announced with
the 2015 final results on 22 February 2016 but is not expected to be less than
23 pence per share, representing a minimum total dividend of 65 pence per share
for 2015, an increase of 7% over the total dividend of 61 pence per share paid
for 2014.

Outlook
 

We are encouraged by the stronger order intake we experienced in the fourth
quarter and by the progress of the integration of EMCO. Despite the mixed
global economic picture, we enter 2016 with positive momentum and therefore
expect that we should be able to show further modest growth in revenues in
2016.

XP Power will announce final results for the 12 months to 31 December 2015 on
22 February 2016.            

                                   - Ends -                                    

Enquiries:

XP Power                                                                      
                                                                              
Duncan Penny, Chief Executive  +44 (0)118 976 5086
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 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, North America 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. 



END



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