Business
Annual Report and Accounts
Annual Report and Accounts.
About this update from Xp Power Ltd.
[{"type":"text","content":"\n \nXP Power plc \n \nReport and Financial Statements \n \n31 December 2006 \n\n\n\nAdvisors\n\nCompany Brokers\n\nInvestec\n\n2 Gresham Street\n\nLondon\n\nEC2V 7QP\n\nPrincipal Bankers\n\nBank of Scotland\n\nUberior House\n\n61 Grassmarket\n\nEdinburgh\n\nEH1 2JF\n\nSolicitors\n\nOsborne Clarke\n\n2 Temple Back East\n\nTemple Quay\n\nBristol\n\nBS1 6EG\n\nRegistrars\n\nCapita IRG Plc\n\nNorthern House\n\nWoodsome Park\n\nFenay Bridge\n\nHuddersfield\n\nWest Yorkshire\n\nHD8 0LA\n\nAuditors\n\nDeloitte & Touche LLP \n \nCardiff \n\nThe year at a glance\n\nHIGHLIGHTS\n\n * Revenue grows 13.2% to £78.7 million\n \n * Diluted earnings per share (adjusted for restructuring and amortisation of\n intangibles associated with acquisitions) increases by 20.9% to 37.0 pence\n (2005: 30.6 pence). Basic earnings per share increases by 4.9% to 32.2\n pence (2005: 30.7 pence).\n \n * Manufacturing joint venture in China operational and profitable in the\n second half of the year\n \n * Seventh successive year of gross margin improvements to 37.1% (2005: 35.7%)\n \n * Dividend to be increased by 12.5% to 18p per share (see note 10)\n \nChairman's statement\n\nBusiness Performance\n\nXP Power has made significant increases in sales and dividends in 2006. Our\ncompetitive position continues to improve in our key medical, industrial and\ncommunications markets. We are making significant progress in developing\ncommercial relationships with target customers through our own new products.\n\nThe business delivered earnings per share of 37.0 pence (2005: 30.6 pence) on a\ndiluted basis after adjustment for restructuring charges and amortisation of\nintangibles associated with acquisitions. Basic earnings per share was 32.2\npence (2005: 30.7 pence). This is the fourth successive year that we have grown\nadjusted diluted earnings per share and the average compound growth rate over\nthis period has been 50%.\n\nStrategy\n\nAs we move into 2007, XP Power is well placed to continue to grow its earnings\nthrough the successful implementation of our focused sales strategy. With the\ndiscontinuation in 2006 of £12 million of annualised sales of third party\nlines, the majority of our products are now our own IP and are enabling\nsignificant improvements in gross margins. In 2006 we opened our own joint\nventure manufacturing facility in Kunshan, Chi...