Laird confident of meeting full-year expectations

Laird has expressed confidence that it will meet its expectations for the full year on the back of a solid third quarter.

Laird has expressed confidence that it will meet its expectations for the full year on the back of a solid third quarter.

Year-to-date revenue at the end of the third quarter was up 3.0% compared to the prior year, but 2.0% lower on an organic basis. For the same period, operating margins have improved over the prior year as a result of vertical integration efficiencies and the rationalisation of certain product lines to exit lower margin business.

In its interim management statement, Laird, which makes electro-magnetic shielding devices for laptops and mobile phones, said: "The planned new product launches, supported by the capacity expansion that has come on stream, leave us well placed to meet our expectations for the remainder of the year."

Net debt is in line with previous expectations for the full year.

Revenue in the third quarter was £133m (2011: £121m), up 10% on the prior year. On an organic basis, revenue was 2.0% higher year-on-year in the third quarter of 2012, with the month of September showing double digit growth year-on-year. Revenue in the third quarter of 2012 increased 4.0% on the second quarter of 2012.

Breaking down the third quarter performance by divisions, its Performance Materials division, delivered revenues of £84m (2011: £77m). Compared to the third quarter of 2011 revenue for the division on an organic basis was only 1.0% higher.

According to the company, demand for tablets and notebooks was slower prior to the introduction of new products being launched, while revenues from the telecommunications market remains in-line with subdued infrastructure spend.

Its Wireless Systems division, which provides antennae and connectivity solutions, delivered revenues of £49m (2011: £44m, this was 4.0% higher on an organic basis compared to the third quarter of 2011. This was driven by robust demand from the North American automotive market.

It also experienced a good level of demand from the public safety market driven by requirements for wireless connectivity. Customers in the industrial and transportation markets continue to defer procurements of larger systems.

Consensus estimates for the full year ending December 31st 2012 are for pre-tax profits of £55.4m on turnover of £553m.

CM

Recommended

The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
2 Feb 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

Best savings accounts – February 2023
Savings

Best savings accounts – February 2023

Interest rates on cash savings are making a comeback. We look at the best savings accounts on the market now
3 Feb 2023
The best one-year fixed savings accounts - February 2023
Savings

The best one-year fixed savings accounts - February 2023

Earn almost 5% on one-year fixed savings accounts.
3 Feb 2023
After slumping 42% last year, what's next for Scottish Mortgage?
Investment trusts

After slumping 42% last year, what's next for Scottish Mortgage?

After a spectacular couple of decades, the Scottish Mortgage Investment Trust fell by 42% last year. We take a look at the trust's performance and dis…
3 Feb 2023