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RNS Number : 3617U

Acal PLC

29 July 2015

For Release

7.00am, 29 July 2015

Acal plc

First Quarter Trading Update

Acal plc (LSE: ACL, "Acal" or the "Group"), one of the leading international suppliers of customised electronics to industry, today issues a trading update for the first quarter of the year ending 31 March 2016, covering the period from 1 April 2015 to 30 June 2015.

Group reported sales for the period increased by 39% and by 51% at constant exchange rates ("CER")(1) ; the difference being the translational impact of a stronger Sterling during the period(2) . On a like-for-like basis(3) , sales growth rates in Custom Distribution and in Design & Manufacturing ("D&M") are similar to growth rates in the second half of last year. For the period, D&M sales comprised 45% of the Group total (FY 2014/15: 37%), with sales beyond Europe increasing to 15% of the Group total (FY 2014/15: 12%).

Gross margin continues to be strong, and is higher than last year.

Our two most recent acquisitions, Noratel and Foss, have both started the new financial year well, with continued growth over their comparable pre-acquisition periods last year.

Cross-selling activities continue to develop positively, with further growth in both the cross-selling of D&M products through the Custom Distribution division, and the cross-selling of technologies to existing Custom Distribution customers.

Nick Jefferies, Group Chief Executive commented:

"Trading has started well, and as expected, although we remain mindful of strengthening foreign exchange translation headwinds. Additionally, each of our growth initiatives have made good progress during the quarter and we expect this to continue throughout the year. The order book remains strong and we have a healthy pipeline of acquisition opportunities, with debt funding resources available."

For further information, please contact:

   Acal plc                                                             01483 544 500 
   Nick Jefferies          - Group Chief Executive 
   Simon Gibbins        - Group Finance Director 
   Instinctif Partners                                               0207 457 2020

Mark Garraway

Helen Tarbet

James Gray

Notes

1. Growth rates at constant exchange rates ("CER"). Unless stated, growth rates refer to the comparable prior year period.

2. The average sterling rate of exchange strengthened 9% against the Euro for the 3 months ended 30 June 2015 compared with the average rate for last year (rising from EUR1.275 to EUR1.385) and strengthened 13% against Nordic currencies on average, negatively affecting reported sales for this period by around 10% and underlying operating profit by 14%.

3. Like-for-like growth for the Group is calculated at CER, including the pre-acquisition periods of the Noratel Group and Foss Group which were acquired last year (on 17 July 2014 and 7 January 2015 respectively).

Notes to Editors:

About Acal plc

Acal is a leading supplier of customised electronics to industry. It designs, manufactures and distributes customer-specific electronic products and solutions to 25,000 industrial manufacturers and is listed on the London Stock Exchange (LSE: ACL).

Acal has two divisions: Custom Distribution and Design & Manufacturing. The majority of its sales comes from products and solutions which are either created uniquely for a customer or sourced exclusively. Acal works across a range of technologies, namely Communications & Sensors, Electromechanical, Imaging & Photonics, Embedded Computers & Displays, and Power & Magnetics.

Acal operates through the following wholly-owned businesses: Acal BFi, Foss, Hectronic, MTC, Myrra, Noratel, RSG, Stortech and Vertec. It has operating companies and manufacturing facilities in a number of markets, including the UK, Germany, France, the Nordic region, Benelux, Italy, Poland, Slovakia and Spain, as well as in Asia (China, India, Sri Lanka and South Korea), the US and South Africa.

This information is provided by RNS

The company news service from the London Stock Exchange

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