TIDMACL
RNS Number : 2789V
Acal PLC
15 April 2016
For Release
7.00am, 15 April 2016
Acal plc
Full Year Trading Update
Acal plc (LSE: ACL, "Acal", the "Company" or the "Group"), a
leading international supplier of customised electronics to
industry, today issues its trading update for the year ended 31
March 2016, ahead of the announcement of its full year results on 1
June 2016.
Trading Update
Trading since our last update on 12 February 2016 has been
better than our forecasts. Underlying earnings for the full year
are therefore expected to be slightly ahead of our
expectations.
Group sales for the year increased by 6% and by 14% at constant
exchange rates ("CER"). The Design & Manufacturing division,
which accounted for 48% of Group revenue and more than three
quarters of Group profit contribution(1) for the year, saw sales
grow by 3% on a like-for-like basis(2) and by 50% CER due to recent
acquisitions.
As expected, overall sales in the Custom Distribution division
were down, some 7% CER, as a result of strong prior year
comparators arising from the previously reported three large
non-repeating orders last year and the discontinuation of the final
non-specialist supplier. Trading in the UK has improved following
the operational changes made during the year. Adjusting for these,
ongoing sales(3) in the division grew by 3% year-on-year.
Sales beyond Europe and cross-selling activities both continue
to develop positively. 17% of Group sales were beyond Europe,
compared with 12% last year, and there was a near doubling of the
sales of Design & Manufacturing products sold through the
Custom Distribution division, to around GBP2.8m.
Gross margins continue to be strong and ahead of last year,
demonstrating the value of our differentiated offering.
New business generation was strong in the second half of the
year with a number of new large customer contracts being won. These
are expected to generate revenue towards the end of this new
financial year and into subsequent years, driving the Group's
organic growth rates in line with our expectations.
The three acquisitions made this year, Flux in November 2015,
Contour in January 2016 and Plitron in February 2016, are all
performing well and as expected.
For further information please contact:
Acal plc 01483 544 500
Nick Jefferies - Group Chief Executive
Simon Gibbins - Group Finance Director
Instinctif 020 7457 2020
Mark Garraway
Helen Tarbet
Notes
1. Profit contribution is underlying operating profit excluding unallocated costs.
2. Like-for-like growth for the Group is calculated at constant
exchange rates ("CER"), including the matching pre-acquisition
periods of the Noratel Group and Foss Group, which were acquired
last year, and of Flux A/S, Contour Electronics Limited and Plitron
Inc, which were acquired this year.
3. Ongoing sales exclude large, non-repeating orders from last
year within Custom Distribution and sales of its final major
non-specialist, low margin supplier, which was discontinued last
year.
4. This trading update is based upon unaudited management
accounts and has been prepared solely to provide additional
information on trading to the shareholders of Acal plc. It should
not be relied on by any other party for other purposes. Certain
statements made in this update are forward-looking statements. Such
statements have been made by the Directors in good faith using
information available up until the date that they approved this
update. Forward-looking statements should be regarded with caution
because of the inherent uncertainties in economic trends and
business risks.
5. All growth rates are calculated using provisional, unaudited
FY16 data which is subject to change.
Notes to Editors:
About Acal plc
Acal is a leading international 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: Design & Manufacturing and Custom
Distribution. The majority of its sales comes from products and
solutions which are created uniquely for a customer. Acal works
across a range of technologies, namely Power & Magnetics;
Communications & Sensors; Electromechanical; Imaging &
Photonics; and Embedded Computers & Displays.
Acal operates through the following wholly-owned businesses:
Acal BFi, Contour, Flux, Foss, Hectronic, MTC, Myrra, Noratel,
Plitron, 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,
South Korea and Thailand), the US, Canada and South Africa.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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April 15, 2016 02:00 ET (06:00 GMT)