Acal PLC Trading Update (6233T)
October 16 2017 - 2:00AM
UK Regulatory
TIDMACL
RNS Number : 6233T
Acal PLC
16 October 2017
For Release
7.00am, 16 October 2017
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
2017 ahead of publishing its half-year results on 28 November
2017.
Trading in the second quarter was strong, generating good levels
of organic growth, continuing the momentum reported in previous
quarters. This growth was driven by new project wins, mostly in our
target markets, and product cross selling, supported by favourable
market conditions, particularly in Continental Europe. As a result,
full year earnings are now anticipated to be slightly ahead of our
expectations.
First half revenue for the Group increased by 21% (GBP33m) to
GBP190m compared with last year (H1 2016/17: GBP157m), an increase
of 15% (GBP24m) at constant exchange rates(1) ("CER"), comprising
organic revenue growth of 9% (GBP16m) and 6% (GBP8m) from
acquisitions(2) .
Organic sales in our Design & Manufacturing ("D&M")
division, which accounted for 57% of total revenue (FY 2016/17:
52%), grew by 11% and by 7% in our Custom Distribution division.
Group orders increased by 15% CER, of which 10% was organic growth
lifting the Group's forward order book to another record period end
high.
Gross margin stabilised during the first half and as expected
was in line with the final quarter of last year.
The Board is confident of making good progress through the rest
of the year, continuing its established strategy of seeking high
quality revenue opportunities in our target markets, along with
value enhancing acquisitions.
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
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.
1. Growth rates at constant exchange rates ("CER"). The average
sterling rate of exchange weakened 7% against the Euro compared
with the average rate for the first half last year, weakened 6%
against the US Dollar and weakened 7% against Nordic currencies on
average.
2. Organic growth for the Group is calculated at CER, including
the equivalent pre-acquisition period of Variohm which was acquired
last financial year (on 20 January 2017) and excluding the sales
from Acal BFi Spain which was closed in December 2016.
3. Growth rates refer to the comparable prior year period unless stated.
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. Acal is listed on the London Stock
Exchange (LSE: ACL).
Acal has two divisions: Design & Manufacturing and Custom
Distribution. The majority of its sales come from products and
solutions which are created specifically for customers. Acal works
across a range of technologies, namely Communications &
Sensors, Power & Magnetics, Electromechanical & Cabling,
Microsystems, and Imaging & Photonics.
Acal operates through the following wholly-owned businesses:
Acal BFi, Contour, Flux, Foss, Hectronic, MTC, Myrra, Noratel,
Plitron, RSG, Stortech, Variohm 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 and Slovakia as well as in Asia (China, India, South
Korea, Sri Lanka and Thailand), North America (the US and Canada)
and South Africa.
This information is provided by RNS
The company news service from the London Stock Exchange
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October 16, 2017 02:00 ET (06:00 GMT)