Laird posts decline in first-quarter revenue

Laird reported a drop in first-quarter revenue on Friday as the technology group experienced a weakness in business-to-business (B2B) markets.

Laird reported a drop in first-quarter revenue on Friday as the technology group experienced a weakness in business-to-business (B2B) markets.

Revenue for the quarter came to £119m, a 2.0% fall from £112m the previous year as poor performance in B2B offset a pick-up in the rate of design activity and design wins.

The company, which designs devices including cellular and mobile radio antennas, said it continues to expect revenues to be weighted towards the second half of the year following the introduction of new products.

"As a result of these new product launches and increasing investment, together with the translation benefit from a stronger US dollar than originally anticipated, our expectations for the full year remain unchanged," the firm said.

In the performance materials division, revenue fell to £73m from £74m, reflecting lower demand from its largest customer.

However, Laird said it was making good progress in penetrating new customers across new locations in the automotive, consumer and medical markets.

The integration of microscale thermal and power company Nextreme, acquired in February, is well underway and the business has secured a new contract to supply an international semiconductor company.

In the wireless systems division, revenue in the first quarter declined to £47m from £48m due to a slowdown in wireless spending and a reduction in sales to the public safety market against a strong previous year.

"There continues to be good demand for the smart antennae solutions we provide and there have also been a number of key new contract wins with international automotive customers," the group said.

"Over the medium-term, these customers have the potential to represent an increasingly significant proportion of Laird's overall customer base."

RD

Recommended

Share tips of the week – 28 January
Share tips

Share tips of the week – 28 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
28 Jan 2022
Which assets will benefit as the “jam tomorrow” bubble pops?
Investment strategy

Which assets will benefit as the “jam tomorrow” bubble pops?

With tech stocks, cryptocurrencies and many other “long duration” investments crashing hard, the “jam tomorrow” bubble looks to be bursting. John Step…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022

Most Popular

Amazon halts plans to ban UK Visa credit card payments
Personal finance

Amazon halts plans to ban UK Visa credit card payments

Amazon has said that it is to shelve its proposed ban on UK customers making payments with Visa credit cards.
17 Jan 2022
Shareholder capitalism: why we must return power to listed companies’ ultimate owners
Investment strategy

Shareholder capitalism: why we must return power to listed companies’ ultimate owners

Under our system of shareholder capitalism it's not fund managers, it‘s the individual investors – the company's ultimate owners – who should be telli…
24 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022