Laird PLC

Press Releases

AUDITED RESULTS FOR THE YEAR TO 31 DECEMBER 2008

11 Mar 2009

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Summary

• Strong growth in revenue and profits in the first half of 2008, with subsequent results impacted by the global economic downturn and associated de-stocking in the global supply chain, particularly in the fourth quarter.
  
  
• Business repositioned to operate successfully in the changed economic and market environment. Prompt actions taken to lower operating costs, with total headcount reduced by some 5,000 (approximately 33%) between October 2008 and January 2009.
  
  
• Underlying profit before tax from continuing operations down 16% at £60.6 million (2007: £72.4 million), largely as a result of lower volumes in the second half.
  
  
• Operating cash flow from continuing operations up 23% at £48.1 million (2007: £39.2 million). Increase in borrowings due largely (£38.9 million) to the translation effect on our US$ borrowings caused by the strengthening US dollar.
  
  
• Sound financial structure maintained; interest cover for the year of 8.2 times; net debt: EBITDA 1.8 times, well within covenants. Debt facilities in place through 2012.
  
  
• Continuing investment in technology development; R&D % of sales increased to 6.1% (2007: 4.5%), further strengthening our technology capabilities and enhancing our competitive position. 725 active patents in 2008, up 19% (2007: 610).
  
  
• Full year dividend up 3% at 11.88 pence (2007: 11.5 pence, in addition to special dividend of 50 pence). Final dividend maintained at 7.88 pence.
  
  

Peter Hill, Chief Executive, said:

"In the first half of 2008 revenue and profits grew strongly. As the year progressed the extremely challenging economic environment affected all of our end-user markets and resulted in a marked fall off in demand for our products. While these macroeconomic conditions and de-stocking in the global supply chain have, as expected, continued into 2009, we have not seen any further deterioration in our revenues this year, although visibility remains limited. However, we still expect first half results to be considerably below the very strong levels seen in the first half of 2008.

We have a flexible business model with excellent customer relationships and a strong technology base. The long term fundamentals of our markets are attractive, our financial position is strong, and we remain confident about our strategy. We have taken swift action to position the business to weather the downturn, and will continue to ensure that Laird maintains its competitive position and emerges from this economic cycle well placed to capitalise on the opportunities provided by the evolving communications environment."

Explanatory notes:

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 and the impact arising from the fair valuing of financial instruments. The narrative that follows 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) Excludes a special dividend of 50p per share paid in June 2007.

* The weighted average number of shares used to calculate earnings per share was 177.2 million in 2008 and 185.9 million in 2007, following the 8 for 9 share consolidation on 11 June 2007.

For enquiries:

Laird PLC
Peter Hill, Chief Executive
Jonathan Silver, Finance Director
Tel: 020 7468 4040

Maitland
Brian Hudspith
Suzanne Bartch
Tel: 020 7379 5151

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