TIDMACL
RNS Number : 3421C
Acal PLC
15 October 2015
For Release
7.00am, 15 October 2015
Acal plc
First Half 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 six months ended 30 September
2015 ahead of publishing its half-year results on 30 November
2015.
Group reported sales for the period increased by 18% and by 30%
at constant exchange rates ("CER")(1) , the difference reflecting
the significant translational impact of Sterling strength during
the period(2) . Like-for-like sales(3) were up 2%, with gross
margin higher than last financial year, and operating margin now in
excess of 5%.
Following the acquisitions of Noratel and Foss last year, sales
at CER in the Design & Manufacturing division ("D&M") have
nearly doubled and like-for-like sales were up by 4%. D&M sales
comprised 46% of total Group sales in the first half (up from 37%
in the last financial year). Both Noratel and Foss have performed
well, generating good levels of organic sales growth over their
comparable pre-acquisition periods last year.
The Custom Distribution division (54% of total Group sales) saw
sales in line with the same period last year at CER. Sales in
continental Europe grew by 4% CER, with ongoing sales(4) up 11%
CER, whilst in the UK where the market continues to be soft, sales
stabilised through the first half following last year's
restructuring. As announced last year, the division discontinued
sales of its final major non-specialist, low margin supplier, in
line with our strategy. This decision, along with a few large,
non-repeating orders last year, is expected to impact prior year
comparative growth rates in the second half.
Cross-selling activities continue to develop positively, with
further growth seen 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:
"First half sales increased by 30% and with gross margins higher
than last year, we will deliver good growth in first half earnings,
as expected. Our Design & Manufacturing division and our Custom
Distribution businesses in continental Europe generated good levels
of organic growth for the market conditions and last year's
acquisitions of Noratel and Foss are both performing well.
Although encouraged by some positive European macro indicators,
we remain cautious over the effects of any wider economic slowdown
and the continuing impact of foreign exchange translation
headwinds. There are several acquisition opportunities in the
pipeline and we have 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 020 7457 2020
Mark Garraway
Helen Tarbet
James Gray
Notes to First Half Trading Update
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 12%
against the Euro for the 6 months ended 30 September 2015 compared
with the average rate for the first half last year (rising from
EUR1.244 to EUR1.39) and strengthened 16% against Nordic currencies
on average, negatively affecting reported sales for this period by
around 10% and underlying operating profit by around 15%.
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 financial year (on 17 July 2014 and
7 January 2015 respectively).
4. Ongoing sales exclude large, non-repeating orders from last year and sales of its final major non-specialist, low margin supplier, which was discontinued last year.
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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October 15, 2015 02:00 ET (06:00 GMT)