02 August 2010

Corporate News

Interim Results for the six months ended 30 June 2010

XP, one of the world's leading developers and manufacturers of critical power control components for the electronics industry, today announces its interim results for the six-month period ended 30 June 2010.

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Highlights

	Six months ended	Six months ended
	30 June 2010	30 June 2009
	(Unaudited)	(Unaudited)
Highlights

RevenueTurnover	£40.7m	£33.1m	+ 23%
Gross profit	£19.0m	£14.9m	+ 27%
Gross margin	46.7%	45.0%	+1.7% points
Operating margin	18.9%	13.0%	+ 5.9% points
Adjusted (*) profit before tax	£7.3m	£3.8m	+ 92%
Adjusted (*) profit after tax	£5.9m	£3.5m	+ 69%
Diluted earnings per share adjusted (*) (see Note 11)	31.1p	18.6p	+ 67%
Interim dividend per share (see Note 10)	13.0p	10.0p	+ 30%

(*) Adjusted for amortisation of intangibles associated with acquisitions of £0.1 million (2009: £0.2 million)

Continued evolution of the Group to an own brand/own manufactured business model delivers a very strong result for the period which sets new records for revenue, gross margins and earnings per share.
Further new product introductions and the development of an industry leading in-house manufacturing capability have generated multiple new program wins which are driving growth as market share gains gather pace.
Broad recovery now evident in core Technology, Medical and Industrial end-user markets.
Increased gross margins of 46.7% (2009: 45.0%) driven by continued expansion of in-house developed, XP brand products, which now represent 90% of revenues (2009: 83%).
Production volumes at Chinese facility now double those of 2009 and approaching 50% of capacity, triggering plans for second facility in Vietnam, on land acquired in 2008.
Net debt reduced to £19 million at 30 June 2010 (2009: £25 million).
Current trading remains robust - new program wins underpin prospects in the second half and beyond.

Larry Tracey, Executive Chairman, commented:

"Our long term strategy of investing in the development and manufacture of our own products has enabled XP to produce excellent financial results in the first half of 2010, which set new records in terms of revenue, gross margins and earnings per share. We entered the second half with record order books and new business secured to date should produce improved revenue in the second half as customer orders enter production, underpinning our confidence in prospects for the full year. We are working hard to ensure that in 2011 and beyond we continue to improve value to our customers and therefore our shareholders".

Enquiries:

XP Power
Larry Tracey, Executive Chairman	+44 (0)7785 387142
James Peters, Deputy Chairman	+44 (0)7785 353066
Duncan Penny, Chief Executive	+65 8322 9520

Citigate Dewe Rogerson	+44 (0)20 7638 9571
Kevin Smith/Ged Brumby

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 40% of sales), healthcare (circa 30% sales) and technology (circa 30% 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 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 Europe, North America and Asia.

For further information, please visit www.xppower.com

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