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.

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."

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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