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RESULTS FOR THE SIX MONTHS TO 30 JUNE 2011
27 Jul 2011
Click here for full press release (738KB PDF)
Laird, a global leader in the supply of products and technology solutions used in network infrastructure, wireless connectivity, displays and industrial controls, today announces results for the six months to 30 June.
Highlights:
- Strong performance from core businesses†
- Organic revenue growth† of 20%
- Revenue† £243 million, up 24% on 2010
- Underlying profit before tax† up 65% to £25.4 million
- Performance Materials revenue up 15%; underlying operating profit up 20% - both at constant currency; organic revenue growth of 13%
- Wireless Systems† revenue up 70%; underlying operating profit up 228% - both at constant currency; organic revenue growth of 33%
- Return on sales† of 11.7% (2010: 9.6%)
- Interim dividend declared of 2.7 pence (2010: 2.1 pence), up 29% on 2010
Targets:
Reflecting the Board's confidence in the future growth prospects for the Company ("Laird"), Laird today announces medium to long-term targets** of:
- 2011 basic underlying EPS expected to be not less than 16.0 pence* (2010: 11.8 pence)
- Organic revenue growth averaging 10% per annum
- Underlying return on sales margin of 15%
- 2011 full year dividend of 8.0 pence to be recommended , up 27% (2010 : 6.3 pence)
- 2012 full year dividend of 10.0 pence, and 2013 full year dividend of 12.0 pence to be recommended
- Resulting Annual compound dividend growth 2010 to 2013 of 24%
Peter Hill, Chief Executive, said:
"We have a compelling investment case based on the strong market positions of our core Performance Materials and Wireless Systems businesses. Together, these growth businesses have delivered a strong performance in revenue and underlying profits, up 24% and 65% respectively† and are well placed in fast growing end markets. This, and our current strong trading performance, underpins our confidence to deliver on the targets we have set out today.
"Laird is a broad-based business, with a strong financial profile and multiple capabilities, serving multiple customers in multiple end-markets. The decisive action we have taken in the first half of 2011, including the cash positive exit from our Handset Antennae business which has masked the advances of our underlying core businesses, enables us to focus on our growth platform to benefit from the continued demand in our end-markets, and the additional demand for our products from new market applications."
† Excluding Handset Antennae and Mechanisms
| 6 months to 30 June 2011 £m |
6 months to 30 June 2010 £m |
||
| Total Revenue | 288.2 | 274.6 | 5% |
| Revenue ex Handset Antennae and Mechanisms(ii) | 243.1 | 196.2 | 24% |
| Underlying profit before tax (i) | 22.3 | 15.1 | 48% |
| Underlying profit before tax(i) ex Handset Antennae and Mechanisms (ii) | 25.4 | 15.4 | 65% |
| Statutory loss before tax | (109.6) | (9.5) | |
| Operating cash flow | 26.2 | 13.1 | 100% |
| Operating cash conversion | 103% | 71% | |
| Net borrowings | 122.7 | 62.8 | |
| Shareholders' equity | 443.8 | 595.5 | |
| p/share (iii) | p/share (iii) | ||
| Total underlying earnings (i) | 6.9 | 4.4 | |
| Statutory basic earnings | (42.6) | (4.6) | |
| Dividend | 2.7 | 2.1 | 29% |
Explanatory notes:
* This statement constitutes a profit forecast and should be read in conjunction with and subject to the reports, bases and assumptions set out in the appendix at the end of this announcement. The reporting accountant and financial advisers have given and not withdrawn their consent to the publication of these reports.
** Growth and margin targets in this statement do not in any way constitute a forecast of future earnings
i) Laird uses underlying results as key performance indicators. Underlying profit before tax and underlying earnings per share are stated before exceptional items, the amortisation of acquired intangible assets, deferred tax on acquired intangible assets and goodwill, the gain or loss on disposal of businesses, the impact arising from the fair valuing of financial instruments and acquisition transaction costs. The narrative is based on underlying operating profit, profit before tax and earnings per share, as the directors believe that these provide a more consistent measure of operating performance.
ii) 2011 numbers and 2010 comparisons restated to exclude the Handset Antennae business and Mechanisms.
iii) The weighted average number of shares used to calculate earnings per share was 266.2 million in 2010 and 265.4 million in the first half of 2011.
For enquiries:
Laird PLC
Peter Hill, Chief Executive
Jonathan Silver, Finance Director
Anna Hartropp, Investor Relations
Tel: 020 7468 4040
Maitland
Brian Hudspith
Liz Morley
Sam Turvey
Tel: 020 7379 5151
A live webcast for Shareholders and Analysts will be available at 10.30am (UK time) at: http://www.laird-plc.com/laird/investor/results-centre/.