XP Power full-year profit rises on Vietnam push, own designs

Mon Feb 24, 2014 4:03am EST

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Feb 24 (Reuters) - Power-component maker XP Power Ltd reported a 13 percent rise in full-year pretax profit as its Vietnam operations turned profitable and it benefited from a jump in sales of its own designed products.

The company, which makes about 5,000 products including AC-DC power converters and LED drivers, said full-year adjusted pretax profit rose to 22.9 million pounds ($38.2 million) from 20.2 million pounds a year earlier.

Revenue at the Singapore-based company rose 8 percent to 101.1 million pounds.

The company makes more than 90 percent of its revenue from customers in the industrial, technology and healthcare businesses in North America and Europe.

XP power said it was confident of further growth in 2014 due to the gradual improvement in global demand for capital equipment made by its customers in the second half of 2013.

Revenue from own-designed products rose 11 percent to 64.2 million pounds and accounted for 64 percent of the group's revenue.

Gross margins rose to 49.1 percent from 47.8 percent as the company's new Vietnam facility - which supplies 60 percent of XP Power's magnetics requirement - turned profitable in June 2013.

XP Power said it recorded a 7 percent rise in 2013 order intake at 103.7 million pounds.

London-listed XP Power raised its final dividend to 19 pence per share from 17 pence.

Shares in the company were up about 1 percent at 1771 pence in thin trading early on Monday on the London Stock Exchange.

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