Interim Results
7 August 2007
XP Power Limited
("XP" or "the Group")
Interim Results for the six months ended 30 June 2007
XP, one of the world's leading providers of power supply solutions to the
electronics industry, today announces its interim results for the six-month
period ended 30 June 2007.
Six months ended Six months ended
30 June 2007 30 June 2006
(Unaudited) (Unaudited)
Income and Expenditure
Revenue £34.2m £38.8m
Gross profit £14.0m £13.9m
Gross margin 40.9% 35.8%
Profit before tax, amortisation of £4.4m £4.3m
intangibles £0.1 million (2006: £0.1
million) and reorganisation costs £2.3
million (2006: £0.7 million)
Profit before tax £2.0m £3.5m
Basic earnings per share 7.4p 14.0p
Diluted earnings per share 7.3p 13.8p
Diluted earnings per share adjusted for 17.3p 16.9p
the amortisation of intangibles and
reorganisation costs (refer to note 6)
Interim dividend per share (refer to note 5) 9.0p 8.0p
* Relocation of headquarters to Singapore is complete
* Interim dividend raised 12.5% to 9.0p (2006: 8.0p) per share underlining
confidence in future prospects
* Own brand revenue increased by 11%. Third party revenue down 43% due to the
decision to terminate a number of third party lines in 2006.
* Gross margin of 40% achieved on target reflecting the focus on own brand
business, now representing 73% of total revenues (2006: 58%)
Larry Tracey, Executive Chairman, commented:
"We continue to progress our strategy to capture more value from our sales in
challenging market conditions."
Enquiries:
XP Power Limited
Larry Tracey, Executive Chairman 0118 984 5515
James Peters, Deputy Chairman
Duncan Penny, Chief Executive Officer
Weber Shandwick Financial 020 7067 0700
Terry Garrett, Nick Dibden, Hannah Marwood
Notes to editors:
XP provides power supply solutions to the electronics industry.
All electronic equipment needs a power supply. Power supplies convert the
incoming AC supply into various levels of DC voltages to drive electronic
components and sub-assemblies within the end user's equipment. XP segments its
business into Communications, Defence and Avionics, Industrial and Medical. By
servicing these markets, XP provides investors with access to technology and
industrial sectors of the Worldwide electronics market.
The market is highly fragmented and made up of a large number of Original
Equipment Manufacturers who source standard and modified standard power
supplies from several hundred power supply companies.
The Investor Presentation covering XP's Interim results will be available on
the XP website at 7.00am on 7 August 2007.
For further information, please visit www.xppower.com
Embargoed until 7.00am 7 August 2007
XP Power Limited
("XP" or "the Group")
Interim Results for the six months ended 30 June 2007
CHAIRMAN'S STATEMENT
I am pleased to report that XP has completed the relocation of its headquarters
to Singapore on schedule and we have exceeded our target 40% gross margin. Our
own brand business grew 11% and now represents 73% (2006: 58%) of total
revenues. The next step in the Group's development is to make us more Asia
centric and expand our manufacturing and supply chain capabilities.
Relocation of Headquarters to Singapore
On 9 November 2006, we announced plans to relocate our headquarters to Asia.
Our shareholders approved a Scheme of Arrangement to introduce a new Singapore
domiciled company, XP Power Limited, as the holding company of the Group on 23
March 2007 and the reorganisation became effective on 24 April 2007. The Scheme
of Arrangement has been accounted for as a reverse acquisition under IFRS 3,
Business Combinations and is explained in note 1 to this interim financial
information.
Given the growing importance of Asia to our target customer base and supply
chain, we decided that it was appropriate to move the domicile of the Group
holding company to Singapore. We expect more of our customers to migrate their
design activities to Asia. We are also expanding our supply chain and
manufacturing capabilities to become more competitive and provide better
service to our customers. We have moved our centre of operations to Asia to
take advantage of the highly educated and well motivated local people.
The costs of making this change of headquarters were £2.3 million and have been
disclosed as exceptional reorganisational costs in the income statement. A
detailed breakdown of these costs is set out in note 3.
The physical relocation of our headquarters to Singapore was completed during
April this year and we are starting to build our supply chain group in this
location together with certain technical engineering capabilities.
Financial Performance
Total revenue for the six months ended 30 June 2007 was £34.2 million compared
with £38.8 million in the same period a year ago. Own brand revenue increased
11% to £24.9 million and third party revenue declined 43% to £9.3 million. As
previously reported, in the first half of 2006 we decided to terminate a number
of third party lines to focus our resources on our own product lines. The
terminated lines represented approximately £12.0 million of annualised revenue.
As expected some of the shortfall has been made up for by the continued growth
of our own product lines.
Gross margins were 40.9% in the first half of 2007 compared with 35.8% in the
same period a year ago. This is a substantial improvement and justifies our
strategic decision to focus on our own product lines.
The overall result is that profit before tax and amortisation of intangibles (£
0.1 million, 2006: £0.1 million) and reorganisation costs (£2.3 million 2006: £
0.7 million) was £4.4 million compared with £4.3 million in the same period a
year ago. Basic earnings per share were 7.4 pence compared with 14.0 pence in
the same period a year ago. Diluted earnings per share were 7.3 pence compared
with 13.8 pence in the same period a year ago. Diluted earnings per share
adjusted for the amortisation of intangibles and reorganisation costs set out
above were 17.3 pence (2006: 16.9 pence).
Dividend
We are once again able to increase the dividend payable to shareholders. The
Group has declared an interim dividend up 12.5% to 9.0 pence per share for the
six months ended 30 June 2007 (2006: 8.0 pence per share). The interim dividend
will be paid on 3 October 2007 to shareholders on the register at 7 September
2007.
In accordance with International Accounting Standard 10, dividends are not
recognised in the financial reporting information until they are declared. The
dividend charged to reserves in the interim financial statements in the six
months to 30 June 2007 relates to the final dividend of 10.0 pence per share
paid in respect of the year ended 31 December 2006 (refer to note 5).
Geographic Markets and Industry Segmentation
Trading conditions have been less positive than we expected during the second
quarter of 2007 as many of our customers appear to be seeing some slowing of
their business and we expect these conditions to carry over into the second
half.
North American revenues for the period were $33.2 million (or £16.8 million)
compared with $37.1 million (or £20.8 million) in the same period a year ago.
The weakening of the US Dollar versus Sterling has resulted in a reduction of
approximately £2.0 million in revenues and approximately £0.2 million on profit
before tax versus the same period a year ago. On average the US Dollar to
Sterling exchange rate was 1.98 versus 1.78 in the same period a year ago.
Our more mature UK business was most exposed to the termination of the third
party lines discussed above. As a result UK revenues in the period declined to
£9.1 million from £11.5 million achieved in the same period a year ago.
In contrast our Continental European business grew revenues by 13% to £7.2
million compared to £6.4 million in 2006. This was achieved despite the
termination of third party lines as we increased market share.
We continue to focus our resources on the higher value customers in our four
market sectors: Communications, Defence & Avionics, Industrial and Medical.
This focus will ensure that we devote our engineering resources to the right
customers and that our current and future product development is carefully
targeted and, above all, customer driven. We believe our move into
manufacturing and focus on our own product IP is helping with the penetration
of these customers.
For the six months ended 30 June 2007, 21% of our revenues came from
Communications (2006: 20%), 49% from Industrial (2006: 51%), 22% from Medical
(2006: 21%) and 8% from Defence & Avionics (2006: 8%).
Product Development
In May of this year we launched our second worldwide catalogue containing 200
pages of XP products and introducing 30 new product families. New product
releases in the period included the highly efficient MFA350 which is a 350 Watt
mechanically flexible unit available in a "hot swap" format. This product was
designed in our Anaheim design centre and lends itself to value added
applications which can take advantage of flexible mechanics.
Also of note are the much lower power ECL and JCA ranges which are the first
products to emerge from our Asian design centre. The ECL family is a range of
10 and 15 Watt AC-DC units available as either board mount or encapsulated. The
size of the units are industry leading. The JCA family is a range of 2 to 6
Watt industrial DC-DC converters available in a metal case with industry
standard pin configuration but smaller package.
Generally, the products we are introducing are designed to be highly flexible
in terms of the applications they will work in.
Manufacturing
Our manufacturing 50:50 Joint Venture with Fortron Source, located close to
Shanghai in China, which opened in May 2006 is continuing to perform well. The
facility has been producing our ECM40, 60 and 100 product families as well as
our flagship fleXPower configurable range of power supplies. During the first
half of the year we have been concentrating on transferring two new product
lines into the facility as well as starting to use lower cost component
providers which are local to the facility. This should have the benefit of
reducing our lead times and inventory levels.
The new facility has been instrumental in allowing us to win business with some
of our larger target customers. Against this background we are in discussions
with Fortron Source to purchase their 50% ownership in this venture by the end
of this year.
People
As a result of our move to Singapore we have reviewed the make up of our Board
of Directors. On the Scheme of Arrangement becoming effective Roger Bartlett
and Paul Dolan stepped down from the Board of XP Power plc. Roger and Paul had
served our company admirably in their positions as non-executive directors and
we are grateful to them for the advice they have given us.
On 24 April 2007 Michael Hafferty was appointed as a non-executive director of
XP. Michael has been the founder and CEO of several technology companies,
including Tricom, Vegastream and Arkstream. He was a director of Case
Communications plc and played a significant role in its IPO on the London Stock
Exchange and as its Sales and Marketing Director built a worldwide sales and
service organisation. Michael is the founder of the consulting company
Arkbridge Pte. Limited based in Singapore and as a result of that position was
appointed Vice President, Asia PAC for the international software company
iTRACS Corporation.
We are also pleased that Andy Sng has been promoted to our Board of Directors
as General Manager for Asia. Andy joined us in July 2005 to start and head up
our Shanghai operations. Over that time Andy has built a strong and capable
team around him, which has enabled us to accelerate the building of our supply
chain, quality and technical operations in Asia. Andy has worked in the power
supply industry for eight years in various technical and commercial roles with
companies such as Silicon Systems (Singapore) and Advanced Micro Devices
(Singapore).
We are delighted to welcome Michael and Andy to the Board and anticipate
further Asian board appointments.
Auditors
Following the relocation of the Group's headquarters to Singapore in April this
year we considered that the audit of the Group should take place from Singapore
rather than the United Kingdom. A number of Singapore audit firms were
contacted and asked to make a proposal for the position of Auditor of the
Company. After review and careful consideration of the proposals received, the
Audit Committee proposes and recommends that the Group changes its Auditor and
accordingly seek Shareholders' approval for the appointment of
PricewaterhouseCoopers, Singapore as the new Auditor of the Group.
Under Singapore Law shareholders are required to approve the change of Auditor
in a General Meeting. Consequently we will today issue a notice to shareholders
of an Extraordinary General Meeting to be held on 5 September 2007 for the
purpose of appointing PricewaterhouseCoopers, Singapore as the new Auditor of
the Group.
These interim results have not been audited or reviewed by auditors.
Outlook
Further vertical integration of our business is anticipated from both expansion
of existing resources and from further acquisitions.
Given the weakness of the US Dollar and recent softness in our end markets we
expect our revenues for 2007 to be below those achieved in 2006 however our
gross margins as a percent of revenue should show significant improvement for
the year.
We continue to progress our strategy to capture more value from our sales in
challenging market conditions.
Larry Tracey
Executive Chairman
7 August 2007
XP Power Limited
Consolidated Income and Expenditure Statement
For the six months ended 30 June 2007
£ Millions Note Six months ended Six months ended
30 June 2007 30 June 2006
(Unaudited) (Unaudited)
Revenue 2 34.2 38.8
Cost of sales (20.2) (24.9)
Gross profit 14.0 13.9
Reorganisation costs 3 (2.3) (0.7)
Operating expenses (8.9) (9.1)
Operating profit 2.8 4.1
Finance cost (0.8) (0.6)
Profit on ordinary activities 2 2.0 3.5
before taxation
Tax on profit on ordinary 4 (0.6) (0.9)
activities
Profit for the period 1.4 2.6
Attributable to:
- equity holders of the company 1.4 2.6
- minority interest - -
1.4 2.6
Basic earnings per share 6 7.4p 14.0p
Diluted earnings per share 6 7.3p 13.8p
Consolidated statement of
recognised income and expense
Exchange differences on translation (0.3) (0.9)
of foreign operations
Net income recognised directly in (0.3) (0.9)
equity
Profit for the period 1.4 2.6
Total recognised income and expense 1.1 1.7
for the period
All activities derive from continuing operations.
XP Power Limited
Consolidated Balance Sheet
At 30 June 2007
£ Millions Note At 30 June At 31 December At 30 June
2007 2006 2006
(unaudited) (unaudited)
Non-current assets
Goodwill 29.9 30.1 27.8
Other intangible assets 7 2.9 2.6 2.6
Property, plant and equipment 3.3 3.2 3.4
Interests in associates 0.2 0.1 0.3
Deferred tax asset 0.6 0.6 0.3
36.9 36.6 34.4
Total non-current assets
Current assets
Inventories 10.5 11.1 8.7
Trade and other receivables 15.6 17.2 18.6
Cash 3.8 4.2 2.6
Derivative financial - 0.1 -
instruments
29.9 32.6 29.9
Total current assets
Current liabilities (13.1) (21.5) (32.0)
Net current assets 16.8 11.1 (2.1)
(liabilities)
Total assets less current 53.7 47.7 32.3
liabilities
Non-current liabilities (24.6) (18.3) (4.7)
29.1 29.4 27.6
Net assets
Capital and reserves
Called up share capital 12 0.2 0.2 0.2
Share premium account 12 27.0 27.0 27.0
Merger reserve 12 0.2 0.2 0.2
Retained earnings 12 1.5 7.5 5.7
Translation reserve 12 0.2 0.4 0.6
Own shares 12 - (5.9) (6.1)
Total shareholders' funds 12 29.1 29.4 27.6
Minority interest - - -
Total equity 29.1 29.4 27.6
These financial statements were approved by the Board of Directors on 6 August
2007.
XP Power Limited
Consolidated Cash Flow Statement
For the six months ended 30 June 2007
£ Millions Note Six months ended Six months ended
30 June 2007 30 June 2006
(unaudited) (unaudited)
Net cash inflow from operating 8 2.7 1.0
activities
Investing activities
Capitalised expenditure on product (0.4) (0.5)
development
Purchases of property, plant and (0.4) (0.6)
equipment
Acquisition of associate/subsidiary 11 (1.4) (0.8)
Net cash used in investing activities (2.2) (1.9)
Financing activities
Interest paid (0.8) (0.6)
Dividends paid to XP Power (1.9) (1.7)
shareholders
Proceeds from sale of own shares 0.4 0.4
Increase in bank loans 5.9 -
(Decrease)/increase in bank overdrafts (4.5) 0.6
Net cash used in financing activities (0.9) (1.3)
Net decrease in cash (0.4) (2.2)
Cash at beginning of the period 4.2 4.8
Cash at the end of the period 3.8 2.6
XP Power Limited
Notes to the Interim Results for the six months ended 30 June 2007
1. Basis of preparation
The interim condensed consolidated financial statements for the six months to
30 June 2007 have been prepared on the basis of the accounting policies set out
in the Group's latest annual financial statements for the year ended 31
December 2006. These accounting policies are drawn up in accordance with the
Listing Rules of the Financial Services Authority and with International
Accounting Standards (IAS) and International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board with the
exception of IAS 34 Interim Financial Reporting which has not been applied in
these interim condensed consolidated financial statements.
The accounting policies used are consistent with those set out on pages 32 to
55 of the Annual Report for XP Power plc for the year ended 31 December 2006,
together with the accounting policies for the reverse acquisition set out
below, following the Scheme of Arrangement. There has been no material impact
during the period of new IFRS standards effective for periods beginning on or
after 1 January 2007.
The interim condensed consolidated financial statements do not include all the
information and disclosures required in the annual financial statements and
should be read in conjunction with the group's annual financial statements as
at 31 December 2006.
Reverse acquisition
XP Power Limited (`the Company') was incorporated on 12 February 2007. On 24
April 2007 the Company became the holding company of XP Power plc pursuant to a
scheme of arrangement under section 425 of the Companies Act 1985 (`the Scheme
of Arrangement').
Under IFRS 3, Business Combinations, this Group reconstruction effected by the
Scheme of Arrangement has been accounted for as a reverse acquisition of the
Company by XP Power plc. This consolidated financial information issued in the
name of the legal parent, the Company, accordingly has been prepared and
presented in substance as a continuation of the financial information of the
legal subsidiary, XP Power plc. The following accounting treatment has been
applied in respect of the reverse acquisition:
a) the assets and liabilities of the legal subsidiary, XP Power plc, are
recognised and measured in the consolidated financial information at the
pre-combination carrying amounts, without restatement to fair value;
b) the retained earnings and other equity balances recognised in the
consolidated financial information reflect the retained earnings and other
equity balances of XP Power plc immediately before the business
combination. The results of the period from 1 January 2007 to the date of
the business combination are those of XP Power plc, as the Company did not
trade prior to the transaction. However, the equity structure appearing in
the consolidated financial information reflects the equity structure of
the legal parent, XP Power Limited, including the equity instruments
issued under the Scheme to effect the business combination; and
c) comparative numbers presented in the consolidated financial information
are those reported in the consolidated financial information of the legal
subsidiary, XP Power plc, for the six months ended 30 June 2006 and the
year ended 31 December 2006.
The Company had no significant assets, liabilities or contingent liabilities of
its own at the time that the Scheme of Arrangement took effect, and no cash
consideration was paid in respect of the business combination. Under the Scheme
of Arrangement the Company issued to the same shareholders the same number of
shares in place of their shareholdings in XP Power plc. Therefore no additional
shares were deemed to be issued by XP Power plc, the legal subsidiary, for the
reverse acquisition. Hence the cost of combination is deemed to be nil.
Transaction costs relating to the Scheme of Arrangement are included as
exceptional reorganisational costs in the consolidated income statement (see
note 3).
2. Segmental analysis
The Group operates substantially in one class of business, the provision of
power supply solutions to the electronics industry. Analysis of total Group
operating profit, net assets, turnover and total Group profit before taxation
by geographical region is set out below.
£ Millions Six months ended Six months ended
30 June 2007 30 June 2006
(unaudited) (unaudited)
Revenue
Europe 16.4 17.9
USA 16.8 20.8
Asia 1.0 0.1
Total revenue 34.2 38.8
Profit on ordinary activities before
taxation
Europe 2.7 2.7
USA 2.7 2.2
Asia 0.4 -
Interest, corporate operating costs (3.9) (1.4)
and amortisation of intangible assets
Profit on ordinary activities before 2.0 3.5
taxation
At 30 June 2007 (Unaudited) At 30 June 2006 (Unaudited)
Europe USA Far Total Europe USA Far Total
East East
Operating net
assets
Goodwill 10.0 19.3 0.6 29.9 8.5 19.3 - 27.8
Other intangible 0.8 2.1 - 2.9 1.1 1.5 - 2.6
assets
Property, plant 2.6 0.5 0.2 3.3 2.7 0.7 - 3.4
and equipment
Interests in 0.2 - - 0.2 0.3 - - 0.3
associates
Deferred tax 0.4 0.2 - 0.6 0.3 - - 0.3
Inventories 5.3 5.0 0.2 10.5 4.1 4.6 - 8.7
Trade and other 9.8 5.2 0.6 15.6 11.9 6.7 - 18.6
receivables
Current (3.9) (5.1) (1.0) (10.0) (5.3) (6.2) - (11.5)
liabilities
Non-current (4.3) - - (4.3) (4.7) - - (4.7)
liabilities
Total operating 20.9 27.2 0.6 48.7 18.9 26.6 - 45.5
net assets
Operating net assets are defined as net assets adjusted for net borrowings.
£ Millions At 30 June 2007 At 30 June 2006
(unaudited) (unaudited)
Net assets 29.1 27.6
Net debt 19.6 17.9
Total operating net assets 48.7 45.5
3. Reorganisational Costs
The reorganisation costs associated with the Scheme of Arrangement and move of
the parent company and headquarters to Singapore are analysed as follows:
£ Millions
Relocation 1.0
Legal fees 0.3
Financial advice 0.3
Broker fees 0.3
Reporting accountants 0.2
Stock Exchange, Registrars, printing and other 0.1
costs
Systems configuration and set up 0.1
Total reorganisational costs 2.3
In consideration of relocating themselves and the parent company to Singapore a
payment of £500,000 was made to Duncan Penny and payments of £250,000 made to
James Peters and Larry Tracey. Part of the terms of these payments are that the
individuals concerned have to repay the total amount paid to them should they
leave the Company within one year of the date the Scheme of Arrangement became
effective or repay half of the amount paid to them should they leave the
Company within one to two years of the date the Scheme of Arrangement became
effective. Full details of these arrangements are set out in the Circular to
Shareholders and Prospectus both dated 21 February 2007.
Reorganisational costs of £0.7 million in the six month period ended 30 June
2006 relate to the termination of the third party lines discussed in the
Chairman's statement.
4. Taxation
Income tax expense is recognised based on management's best estimate of the
weighted average annual income tax rate expected for the full financial year.
The estimated average annual tax rate used for 2007 is 25% (2006: 25%)
£ Millions Six months ended Six months ended
30 June 2007 30 June 2006
(unaudited) (unaudited)
Singapore - -
UK taxation - 0.2
Other overseas taxation 0.6 0.7
Total taxation 0.6 0.9
5. Dividends
Amounts recognised as distributions to equity holders of the parent in the
period:
Six months ended Six months ended
30 June 2007 30 June 2006
(unaudited) (unaudited)
Earnings Pence per £ Millions Pence per £ Millions
share share
Prior year final dividend 10.0 1.9 9.0 1.7
The dividend payable recognised in the interim financial statements relates to
the 2006 year-end dividend.
Proposed interim dividend 9.0 1.7 8.0 1.5
The interim dividend of 9.0 pence per share (2006: 8.0 pence per share) will be
paid on 3 October 2007 to shareholders on the register of members on 7
September 2007.
6. Earnings per share
The calculation of the earnings per share is based on the following data:
Six months Six months
ended ended
30 June 2007 30 June 2006
(unaudited) (unaudited)
Earnings £ Millions £ Millions
Earnings for the purposes of basic and diluted 1.4 2.6
earnings per share (profit for the financial
period)
Amortisation of intangibles 0.1 0.1
Reorganisation costs 2.3 0.7
Tax effect from reorganisation (0.5) (0.2)
Earnings for adjusted earnings per share 3.3 3.2
Number of shares Number Number
Weighted average number of shares (thousands) 18,869 18,590
(basic)
Impact of share options (thousands) 221 298
Weighted average number of shares (thousands) 19,090 18,888
(diluted)
Earnings per share from continuing operations Pence per share Pence per share
Basic 7.4p 14.0p
Diluted 7.3p 13.8p
Diluted adjusted for amortisation of 17.3p 16.9p
intangibles and reorganisation costs
The weighted average number of shares excludes 322,904 ESOP (employee share
ownership plan) shares (2006: 350,239) and 930,840 (2006: 1,763,862) treasury
shares.
On 19 April 2007 all shares remaining in treasury which totalled 1,462,325 were
cancelled prior to the Scheme of Arrangement becoming effective.
7. Other intangible assets
Other intangible fixed assets comprises development expenditure capitalised
when it meets the criteria laid out in IAS 38 (refer to Accounting Policies),
trademarks and non-contractual customer relationships.
8. Reconciliation of operating profit to net cash inflow from operating
activities
£ Millions Six months ended Six months ended
30 June 2007 30 June 2006
(unaudited) (unaudited)
Operating profit (excluding 2.8 4.1
associates)
Adjustments for:
Amortisation of intangibles 0.1 0.1
Depreciation 0.3 0.3
Foreign currency differences (0.3) (0.3)
Operating cash flows before 2.9 4.2
movements in working capital
Decrease/(increase) in inventories 0.5 (0.6)
Decrease/(increase) in receivables 1.6 (1.4)
(Decrease) in payables (1.8) (0.2)
Cash generated by operations 3.1 2.0
Tax paid (0.5) (1.0)
Net cash inflow from operating 2.7 1.0
activities
9. Borrowings
In September 2006 the Group renewed its annual working capital facility of £
10.0 million. At that time the Group also replaced its £15.0 million
multicurrency revolving credit facility with a £10.0 million term loan
repayable over 5 years and a £5.0 million revolving credit facility committed
for 3 years. Both of these facilities are with Halifax Bank of Scotland and are
priced at LIBOR plus a margin linked to certain covenants, which ranges from
1.0% to 1.5%.
The £10.0 million term loan is repayable £2.5 million in year 3, £2.5 million
in year 4 and £5.0 million in year 5.
In February 2007 the Group reduced the £10.0 million working capital facility
with Halifax Bank of Scotland to £4.0 million at the same time as it increased
the committed term loan from £10.0 million to £16.0 million, with the
additional £6.0 million to be repaid in year 5, making the total amount of the
year 5 repayment £11.0 million. The £5.0 million revolving credit facility
remained unchanged.
10. Own shares
Own shares includes 207,131 (December 2006: 393,051; June 2006: 384,331) shares
in the Group's employee share ownership plan (ESOP). These shares are carried
at the lower of cost and market value.
At 30 June 2006 own shares also included 1,691,375 treasury shares. All
treasury shares were cancelled on 19 April 2007 prior to the Scheme of
Arrangement becoming effective.
11. Acquisitions
During the period the Group paid £1.4 million representing the outstanding
amount due to the shareholders of Powersolve Electronics Limited for an
additional 30.3% of the outstanding shares. XP Power Limited now owns 69.7% of
the outstanding shares of Powersolve Electronics Limited and is committed to
purchasing the remaining 30.3% in 2012.
12. Share capital and reserves
£ Millions Share Share Merger Own Translation Retained Total
capital premium reserve shares reserve earnings
At 1 January 2007 0.2 27.0 0.2 (5.9) 0.4 7.5 29.4
(audited)
Cancellation of own - - - 5.9 - (5.9) -
shares
Gain on disposal of - - - - - 0.4 0.4
shares
Exchange differences - - - - (0.2) - (0.2)
on translation of
overseas operations
Profit for the period - - - - - 1.4 1.4
to 30 June 2007
Dividends (note 4) - - - - - (1.9) (1.9)
At 30 June 2007 0.2 27.0 0.2 - 0.2 1.5 29.1
(unaudited)
Under the court-approved Scheme of Arrangement effected on 24 April 2007 (see
note 1), the Company issued a new ordinary share for every existing ordinary
share in XP Power plc. On 19 April 2007, shortly before the Scheme of
Arrangement became effective, XP Power plc cancelled the entire 1,462,325
shares it held in treasury which could not participate in the Scheme of
Arrangement.
After the Scheme of Arrangement became effective on 24 April 2007 there were
19,242,296 ordinary shares in issue, at a nominal value of 1 pence per ordinary
share.
As explained in note 1 the 2006 comparative figures in this statement are those
reported in the consolidated information of XP Power plc.
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- 2 hours ago Ocado Group
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- 2 hours ago Foresight Enterprise VCT
- 2 hours ago Mitie Group