A gradual recovery after the summer helped XP Power (XPP) do better than analysts expected in 2013. Customers are spending more, but XP's power convertors are also winning market share. The margins are so good that a decent slug of any top-line growth drops straight through to earnings.
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Chief executive Duncan Penny expects an even bigger slice of the pie in 2014. One reason is that selling direct to the customer rather than through distributors gives XP an edge over its rivals. Another is that the company is crucial in the design process and makes a lot of the products itself, which customers like. XP also boasts a broader range of kit than its competitors.