23rd Feb 2015 08:38
LONDON (Alliance News) - XP Power Ltd Monday raised its total dividend for 2014, as pretax profit increased on the back of lower costs and as revenue growth in Asia and North America helped to offset weakness in Europe.
The power control component manufacturer proposed a final dividend of 22.0 pence, up from 19.0 pence, taking its total dividend to the year to 61.0 pence, up from 55.0 pence.
It posted a pretax profit of GBP24.3 million, up from GBP22.9 million in 2013, as operating costs fell and revenue stayed flat at GBP101.1 million. The strength of sterling against the US dollar hampered revenue, although this also helped reduce operating expenses by GBP700,000. If exchange rates had remained the same, revenue would have risen 5%, the company said.
In North America revenue rose 2.6%, and the company said that its outlook for the region is encouraging. It will be expanding its sales and power systems engineering resources in this market during 2015. Asia revenue rose 4.1%, as the company replaced a larger programme that went end of life in 2013 and bolstered its direct sales presence.
This offset a revenue decline of 3.7% in Europe, hampered by challenging economic conditions in Germany and southern Europe.
XP Power reiterated confidence in its prospects for 2015, citing the recent strengthening of the US dollar against sterling. It plans to increase its investment into sales and engineering over the coming year.
"While we are not immune from capital equipment cycles and global economic conditions we continue to expect further revenue growth in 2015," the company said in a statement.
Shares in XP Power are trading up 1.8% at 1,547.00 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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