XP announced its interim results for the six-month period ended 30 June 2011. The company states that its strategy of developing and manufacturing its own range of products produced another year of record profits and earnings per share.
Bookings decreased by 5% to €98.3 million (2010: €103.4 million) and revenues increased by 13% to €103.6 million (2010: €91.8 million). Gross margins witnessed an increase of 49.1% (2010: 48.0%) driven by continued expansion of XP’s own design revenues which represented €59.2 million or 57% of total revenues (2010: €44.1 million or 48% of total revenues). The company announced robust earnings and strong cash flows provide basis for an increased total dividend of 45.0p per share for the year up 36% on the prior year.
Larry Tracey, Executive Chairman, commented: "Consistent application of our well-established strategy of moving "up the food chain" into design and manufacture produced another year of record profits and earnings, against a backdrop of economic conditions which deteriorated markedly in the later part of the year.
"Our strategy and its execution resulted in earnings per share of 106.4p in 2011 (2010: 83.7p), an increase of 27% over 2010. This is a fifth successive year of improvement and another record for the Group. The compound average growth rate of earnings per share has been 27% over the last 5 years and 18% over the last 10 years.
"Under the leadership of our experienced management team, the new products introduced over the past four years, and manufactured in our new production facilities, are now entering customer production and should ensure that we continue to gain market share. This combination should leave us well placed to further grow earnings and dividends over the next five years."
