Power control components maker XP Power Ltd (LON:XPP) said trading in the second quarter to date has continued to be strong.
Group revenues for the six months to June 30 2011 are expected to grow by more than 25 percent over the same period in 2010. In constant currency the growth rate is expected to be not less than 29 percent.
"In addition, we have seen a further favourable change in the product mix during the period, with a continuing growth in the proportion of own design product,” XP Power said in a strading statement.
Own design product represented 53 percent of revenue in the first quarter of 2011 and this has increased further to 55 percent in the first two months of the second quarter, versus 48 percent of revenue for the year ended December 31 2010.
This will have a positive impact on gross margins in the six months to 30 June 2011.
Construction work on its new Vietnamese factory continues to progress to schedule and the facility is expected to be completed during the first quarter of 2012.
Having held executive roles on the XP board since the public listing in 2000 and with the group's strategic transformation from distributor to designer and manufacturer of its own range of products now complete, executive chairman Larry Tracey and his deputy James Peters have indicated their intention to relinquish their executive duties in April 2012 and become non-executive.
Chief executive Duncan Penny will assume full responsibility for the day to day management of the business from this point, with Mike Laver, North American president and executive director, assuming responsibility for global sales and marketing.
"New project wins with our own in-house developed products have, despite strong revenue growth, led to orders outpacing revenues by 10 percent in the year to May. This robust performance gives us confidence in our ability to achieve strong revenue growth for this year," XP Power said.