Laird PLC Q3 Trading Update (8889M)
19 October 2016 - 5:00PM
UK Regulatory
TIDMLRD
RNS Number : 8889M
Laird PLC
19 October 2016
19 October 2016
Laird PLC
Q3 Trading Update
Laird PLC today announces its trading update for the third
quarter from 1 July to 30 September 2016. Unless otherwise stated
the trends and figures highlighted below refer to the three months
ended 30 September 2016, the third quarter of the company's
financial year, and the corresponding period for last year.
After a disappointing first half, a significant improvement in
the second half of 2016 was expected, particularly in the
Performance Materials (PM) division. However, the acceleration of
production for mobile devices has come much later than in previous
cycles and visibility on volumes remains poor. In addition, we have
experienced increased margin pressure due to unprecedented pricing
pressures and some operational factors. This has led to a very
challenging trading performance in PM in Q3 and we now anticipate
full year Group underlying profit before tax(1) to be around
GBP50m.
Management are taking actions to stabilise and improve the
financial performance of the PM division with a considerable focus
on managing costs and cash across the Group. We expect year end net
debt to EBITDA to be within covenant limits of 3.5x.
Group Performance
Revenue in sterling for the third quarter increased by 29% to
GBP207m (Q3 2015: GBP160m). On an organic(2) basis at constant
currency, revenue was lower by 4%.
Year to date, for the nine month period to 30 September, revenue
increased 20% to GBP560m (YTD Sept 2015: GBP466m). On an organic(2)
basis at constant currency, revenue was down 4%.
Divisional Performance
Wireless Systems
Wireless Systems (WS) revenue in the third quarter increased 58%
to GBP93m (Q3 2015: GBP59m). On an organic(2) basis at constant
currency, revenue was lower by 3%.
Revenue growth in this division has been adversely impacted in
Q3 by the challenges faced in the Wireless Automation and Controls
business (WACS). The rest of WS continues to perform well with
revenue up 4% on an organic constant currency basis(2) . Further
design wins particularly in the automotive sector are supporting
future growth and trading in Novero remains consistent with that
outlined at the interim results.
Performance Materials
Performance Materials revenue in the third quarter increased 12%
to GBP113m (Q3 2015: GBP101m). On an organic(2) basis at constant
currency, revenue was down 5%.
Trading conditions for PM have continued to be very challenging
in Q3 due to the much slower production ramp, pricing and margin
pressures and the overall lack of visibility in the Mobile Devices
market. Actions are being taken to address the operational
performance of this business through a range of self-help
initiatives.
Commenting on today's announcement Tony Quinlan, Chief
Executive, said:
"We are very disappointed by these adverse developments in the
mobile devices market for our Performance Materials division, at a
time when other parts of the business continue to perform well. We
are confident that the actions we have taken will stabilise and
improve the business.
Moving into 2017, the work to improve our operating model is
progressing well and we are on track to deliver the associated
significant financial benefits. This, together with the Novero
turnaround, as well as the positive momentum in our automotive
business, will improve performance next year and beyond."
A conference call will be hosted by Tony Quinlan at 08.30 BST
today to discuss this announcement in more detail:
+44 (0)203
United Kingdom, London 043 2002
+45 35 15
Denmark, Copenhagen 80 49
+33 (0)1 76
France, Paris 77 22 74
+49 (0)69
Germany, Frankfurt 2222 13420
+852 3018
Hong Kong, Hong Kong 8767
+41 (0)44
Switzerland, Zurich 580 7206
United States, Colorado
Springs +1 719-325-2202
Confirmation code: 8685023
(1) Underlying profit before tax is stated before exceptional
items, amortisation of acquired intangible assets, deferred tax on
acquired intangible assets, goodwill and US capitalised development
costs, gain or loss on disposal of businesses and impact arising
from the fair valuing of financial instruments
(2) Organic constant currency growth is calculated by
eliminating the revenue from acquisitions made for a period of
twelve months from the acquisition date and applying prior year
exchange rates to convert current year revenues to GBP.
This announcement contains inside information
About Laird PLC:
Laird is a global technology company providing systems,
components and solutions that protect electronics from
electromagnetic interference and heat, and that enable connectivity
in mission-critical wireless applications and antennae systems.
Laird is a global leader in the field of innovative radio frequency
("RF") engineering.
Enquiries:
Laird PLC MHP Communications
Tony Quinlan, Chief Executive Reg Hoare Jamie Ricketts
Officer Tim Rowntree Ollie Hoare
Kevin Dangerfield, Chief
Financial Officer
Lucie Harwood, Head of Treasury
& Investor Relations
Tel: +44 (0)20 7468 4040 Tel: +44 (0)20 3128 8100
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTDGBDGBXBBGLI
(END) Dow Jones Newswires
October 19, 2016 02:00 ET (06:00 GMT)
Laird (LSE:LRD)
Historical Stock Chart
From Apr 2024 to May 2024
Laird (LSE:LRD)
Historical Stock Chart
From May 2023 to May 2024