Business
2017 Tax Update
2017 Tax Update.
About this update from Xp Power Ltd.
[{"type":"text","content":"\n \nRNS Number : 4990E XP Power Limited 12 February 2018 \n\n12 February 2018\nXP Power Limited \n(\"XP Power\" or the \"Company\")\n2017 Tax Update\nXP Power, one of the world's leading developers and manufacturers of critical power control components for the electronics industry, is today issuing an update on taxation charges for the year ended 31 December 2017.\nThe recently enacted Tax Cuts and Jobs Act in the United States is expected (subject to audit) to result in a non-cash tax credit in 2017 relating to the revaluation of US deferred tax balances of circa £5.2m, based on the net deferred tax liability at the end of 2017. This credit is as a result of the reduction in the federal tax rate from 35% to 21% and will be excluded from adjusted earnings.\nThe Company has also received notice that claims relating to the Development and Expansion Incentive (DEI) in Singapore have been accepted by the Inland Revenue Authority of Singapore resulting in a circa £1.3m refund of Corporation Tax paid in 2015 and 2016. This will also be excluded from adjusted earnings. \nWe will continue to work through the full impact of these changes but expect the Company's future effective adjusted tax rate to be in the range 15-17% depending on regional mix of profits.\n \nEnquiries: \nXP Power \nDuncan Penny, Chief Executive Officer +44 (0)118 976 5086\nGavin Griggs, Chief Financial Officer +44 (0)118 976 5154 \n \nCitigate Dewe Rogerson +44 (0)20 7638 9571 \nKevin Smith/Jos Bieneman \n \nNote to editors\nXP 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 inve...