9
    October 2017

    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 to the electronics industry, is today issuing its
    trading update for the quarter ended 30 September 2017.

    Trading

    Trading in the third quarter has been robust.  Revenues for the nine months
    ended 30 September 2017 increased by 34% over the prior year to £123.9 million
    (2016: £92.6 million). In constant currency the increase in revenues was 21%.  

    Order intake for the nine months ended 30 September 2017 was strong at £137.5
    million (2016: £95.8 million) which was 44% higher than the prior year. In
    constant currency this was an increase of 30%.

    Our third quarter order intake was £44.1 million (2016: £34.2 million). The
    momentum in our order intake is encouraging, particularly the continued growth
    we are experiencing in our North American markets.   

    Financial Position


    The Group entered into a new revolving credit facility ("RCF") at the end of
    the quarter of US$40.0 million with a US$20.0 million additional accordion
    option. The new facility is in place to assist the Group's acquisition
    strategy. 

    Net debt was £10.8 million at 30 September 2017 following the draw down on the
    Group's new RCF to finance the US$23 million acquisition of Comdel which closed
    on 29 September 2017. Net cash at 30 June 2017 was £8.0 million.  

    Dividend

    A dividend for the third quarter of 18 pence per share will be paid on 11
    January 2018 to shareholders on the register at 15 December 2017. This brings
    the total dividend for the first three quarters of 2017 to 49 pence per share,
    representing a 9% increase over the 45 pence per share paid in respect of the
    first three quarters of 2016.

    Outlook
     

    We are encouraged by another quarter of strong order intake with our end
    markets remaining buoyant.

    The Group believes it is continuing to take market share as its portfolio of
    industry-leading power technology products is increasingly designed-in to new
    equipment by our target customers. These design wins will translate in to
    orders as our customers' projects move to production phase over the coming
    years. 

    The Board now anticipates the Group's performance for the full year will be
    ahead of its previous expectations outlined at the time of the Group's interim
    results on 31 July 2017.

    Furthermore, the acquisition of the business and assets of Comdel just before
    the period end was the latest step in the Group's strategy of acquiring
    complementary product capabilities.  The acquisition will enable XP Power to
    provide its existing customers with a comprehensive product offering in Radio
    Frequency power supplies, increasing our addressable market and further
    expanding our revenue base.  The Group is continuing its search for further
    suitable M&A opportunities.

    XP Power will issue a trading update for the year to 31 December 2017 on 12
    January 2018.

                                       - Ends -                                    

    Enquiries:

    XP
    Power                                                                                                    
                                                                                                        
                                                                                                        

    Duncan Penny, Chief Executive                +44 (0)7776 178 018

    Jonathan Rhodes, Finance Director
                                                                                                  
    +44 (0)118 976 5074
                                                                             

    Citigate Dewe Rogerson                         +44 (0)20 7638 9571

    Kevin Smith/Jos Bieneman

    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 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 and Vietnam, 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 29
    locations in Europe, North America and Asia.