Trading Statement

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  [phone]
Jonathan Rhodes, Finance Director  [phone]    

Citigate Dewe Rogerson [phone]
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.