XP Power reports flat revenues in first quarter

XP Power's shares retreated Friday as the company reported flat revenues for the first quarter in a trading update.

The maker of power control components for the electronics industry said sales in the three months ended March 31st 2013 were in line with the same period the year before but up 1.0% at constant currency,

The group also reiterated its 2013 guidance for flat revenues. However, if the recent weakness of the sterling/US dollar exchange rate persists it will result in slightly higher revenues.

Nevertheless, the company increased its first-quarter dividend by 10% to 11p as gross margins improved thanks to better factory and reduced net debt.

Net debt came to £10.4m at the end of the period compared to £10.6m the previous quarter.

"At the time of our 2012 final results announcement in February, we reported that the global capital goods markets remained subdued. This continues to be the case, with no material improvement or deterioration in trading during the first quarter," the company said.

RD