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

XP PowerAnnouncement

07/10/2016 07:05

                                                               
7 October 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 to the electronics industry, is today
issuing its trading update for the quarter ended 30 September 2016.

Trading

The Group continued to trade in line with the Board’s expectations for the
full year.

Revenues for the nine months ended 30 September 2016 increased by 13% over the
prior year to £92.6 million (2015: £81.7 million). In constant currency the
increase in revenues was 5%.  

Orders for the nine months ended 30 September 2016 were encouraging at £95.8
million (2015: £80.3 million) which was 19% higher than the prior year. In
constant currency this was an increase of 11%.

Third quarter order intake was boosted as customer orders expected to be
placed in the fourth quarter were pulled forward into September. Our third
quarter order intake was £34.2 million (2015: £23.9 million), exceeding the
previous record of £31.3 million achieved in the second quarter of 2016 (Q2
2015: £28.8 million). The momentum in our order intake is encouraging,
particularly as we are starting to see our North American markets return to
growth.   

Financial Position

Net debt was £2.2 million at 30 September 2016 compared to £6.0 at 30 June
2016.

Dividend

A dividend for the third quarter of 16 pence per share will be paid on 12
January 2017 to shareholders on the register at 16 December 2016. This brings
the total dividend for the first three quarters of 2016 to 45 pence per share,
representing a 7% increase over the 42 pence per share paid in respect of the
first three quarters of 2015.

Outlook
 

Despite the challenging macroeconomic backdrop, we are reassured by the
momentum in our order intake during Q3. The Board expect trading to be in line
with its expectations for the full year.

We remain encouraged by new design wins and believe the Group is continuing to
take market share as its portfolio of industry-leading power technology
products is increasingly designed-in to new equipment by our target customers.
These design wins will translate to orders as our customers’ projects move
to production phase over the coming years. 

XP Power will issue a trading update for the year to 31 December 2016 on 13
January 2017.

- Ends -

Enquiries:

XP
Power                                                                                                                                           
                                                                                        

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 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 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 29
locations in Europe, North America and Asia. 



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