27 October 2017

Laird PLC

Q3 Trading Update

Improved performance continues

Laird PLC today announces its trading update for the third quarter from 1 July to 30 September 2017.  Unless otherwise stated the trends and figures highlighted below refer to the three months ended 30 September 2017, the third quarter of the company's financial year, and the corresponding period for last year.

Group Performance

Revenue for the third quarter continued the much improved performance seen in the first half of 2017.  Revenue in sterling for the third quarter grew by 19% to £245m (Q3 2016: £207m).  On an organic constant currency¹ basis, revenue was up 16%.

Year to date, for the nine month period to 30 September, revenue increased 23% to £686m (Year to date Sept 2016: £560m). On an organic constant currency¹ basis, revenue was up 12%.

Full Year Guidance

Within the improved organic constant currency growth rate reported in Q3, there was some benefit from the timing of public holidays in Asia and Europe, which resulted in revenue being generated earlier than usual. This timing impact, along with the stronger comparative in Q4, will result in more modest growth in the final quarter.

As a result of the revenue performance, we anticipate reporting full year underlying profit before tax towards the top end of current market forecasts for 2017*.

The Group's financial position is robust and there remains significant headroom under existing debt facilities.

*The current company compiled market consensus for underlying profit before tax is £63.3m, with a range from £60.0m to £65.2m.

Commenting on today's announcement Tony Quinlan, Chief Executive, said:

"I am pleased with the continued improvement in underlying performance across the Group in the third quarter, which demonstrates the strengthening foundations within the business.

"In what remain competitive but attractive markets, we continue our relentless focus on driving operational excellence. This has started delivering results and will remain an ongoing priority throughout Laird."

Divisional Performance

Performance Materials

Performance Materials revenue for the quarter was up 15% to £121m (2016: £105m) and on an organic constant currency¹ basis, revenue was 13% higher. The actions taken to stabilise and improve commercial and operational performance are delivering results, with growth in all parts of the division, but particularly Precision Metals and Thermal Materials.

Connected Vehicle Solutions

Connected Vehicle Solutions revenue for the quarter grew 24% to £82m (2016: £66m) and on an organic constant currency¹ basis, revenue was 20% higher. CVS continues to see strong demand for vehicle antenna and smart device integration products in what remains a buoyant but competitive market.

Wireless and Thermal Systems

Wireless and Thermal Systems revenue for the quarter was up 17% at £42m (2016: £36m) and on an organic constant currency¹ basis, revenue was 17% higher. Whilst this division benefitted from a relatively weak comparative last year, there was double digit growth across Connectivity, Controls and Thermal.

Notice of Full Year Results

The Group will next report at its Full Year results for 2017 on Thursday 1 March 2018.

Enquiries:

Forward Looking Statements

This announcement contains forward-looking statements, including with respect to financial information, that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe", "will", "may", "should", "would", "could", "is confident", or other words of similar meaning. Undue reliance should not be placed on any such statements because they speak only as at the date of this announcement and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and Laird's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements.

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. 

¹Organic 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. The Directors believe that this measure provides investors with information regarding the underlying revenue performance of the Group as it eliminates the effect of acquisitions and the translation effect of currency exchange movements from period to period.