Laird PLC

Press Releases

RESULTS FOR THE SIX MONTHS TO 30 JUNE 2009

30 Jul 2009

Click here for full press release

Results for the six months to 30 June 2009 (unaudited)

Peter Hill, Chief Executive, said:

"Trading conditions have, as expected, proved to be very challenging during the first half of 2009. The difficult macroeconomic conditions, together with the downturn in consumer electronics markets, have been exacerbated by destocking in the global supply chain. Although demand has stabilised since the start of the year, we have yet to see any signs of a sustained recovery.

We have taken actions to match our operations and our cost base to the new levels of demand, focusing on cash generation and best serving our customers, while maintaining our investment in new product development. We expect to see some pick-up in activity in the second half of the year as a result of new programme awards and some replenishment of inventories in the global supply chain, and also expect to see additional benefits to come from our cost reduction actions. We believe that the fundamentals of our markets remain attractive, and that we will be well positioned as these markets return to growth."

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

Summary

• Results impacted by the global economic downturn and associated de-stocking in the global supply chain, seen in the second half of 2008 and which has continued into 2009. Trading environment remained challenging throughout the first half of this year, compared with the strong growth in revenue and profits reported for the first half of 2008.
• Actions taken to reposition Laird to operate successfully in the current economic and market environment:
  • operating costs reduced; further manufacturing and support functions being migrated to low cost locations
  • direct labour costs reduced by 37% in line with revenues
  • overheads reduced by $42 million (£28 million) in the period compared with the first half of 2008, while still maintaining engineering and R&D spend.
• Underlying profit before tax from continuing operations down 78% at £7.6 million (2008, £34.5 million), largely as a result of lower volumes in 2009 offset partially by cost reductions.
• Tight control of cash: operating cash flow after capital expenditure from continuing operations of £22.8 million (2008, £28.1 million). Operating cash conversion after capital expenditure from continuing operations of 200% (2008, 74%).
• Operated well within covenants at the half year:
  • debt facilities in place with maturities from 2012 to 2016.
• Interim dividend of 4.0 pence per share (2008, 4.0 pence).

Explanatory note:

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 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.

Back to press releases for 2009

Back to top