TIDMLRD
RNS Number : 7869D
Laird PLC
29 October 2015
29 October 2015
Q3 Trading Update, Redesigning our Operating Model and Capital
Markets Day
1. Trading Update
Laird PLC today announces its trading update for the third
quarter from 1 July to 30 September 2015. Unless otherwise stated
the trends and figures highlighted below refer to the three months
ended 30 September 2015, the third quarter of the company's
financial year, and the corresponding period for last year.
Group Performance
Revenue in sterling for the third quarter grew by 7% to GBP160m
(Q3 2014: GBP150m). In US$, third quarter revenue was down 1% at
$248m (Q3 2014:$251m) and on an organic(1) basis in constant
currency, US$ revenue grew 1%.
Progressively, for the nine months to 30 September, revenue grew
16% to GBP466m (Q3 2014: GBP402m). On an organic(1) basis in
constant currency, US$ revenue grew 8%.
Divisional Performance
Performance Materials
Performance Materials revenue in the third quarter was unchanged
year on year, at GBP101m. In US$, revenue was 7% lower at $157m (Q3
2014: $168m) and on an organic(1) basis in constant currency, US$
revenue was 5% lower.
This division delivered strong results in the first half, but
performance in the third quarter was impacted by weaknesses in the
telecoms market and the timing of smartphone product launches.
Wireless Systems
Wireless Systems revenue in the third quarter grew 21% to GBP59m
(Q3 2014: GBP49m). In US$, revenue was $92m (Q3 2014: $82m) and on
an organic(1) basis in constant currency, US$ revenue grew by
14%.
We delivered another good quarter of growth with strong vehicle
antenna sales. This was supported by good performance across a
number of other areas, including equipment sales into the rail
industry and aftermarket revenues in the mining and industrial
sectors.
2. Redesigning our Operating Model
Today, we are outlining our plans for a step-change in our
capabilities to create and capture value from opportunities in the
very exciting growth markets in which we operate.
Laird has made considerable progress over the past three years
in laying strong foundations in leadership development, culture,
strategy and governance, underpinning strong revenue growth over
this period. We now have the clarity of strategy and organisational
capabilities to tackle the last key foundation that underpins our
business and that is the operating model.
Over the next 18 months, we will reshape Laird, simplifying our
manufacturing capabilities in Europe and North America in our
largest facilities to reinforce our ability to deliver reliable
fulfilment and speed, while leveraging our cost base. We will align
and consolidate our regional design, engineering, sales and
distribution activities closer to our customers to drive innovation
and further improve time to market. We will simplify our operating
model to focus on key activities that enable our differentiation
strategy, and we will leverage common process and operational scale
where these can add significantly to our growth.
We do not anticipate a significant overall reduction in
headcount, but a significant reduction in our site footprint, where
we currently operate in 52 sites globally. This is a crucial step
in our continued evolution and we anticipate pre-tax cash costs
(P&L) to be up to $60m, to deliver this change, a significant
investment in the Group. We anticipate that much of this cost will
be treated as an exceptional cost. We will deliver pre-tax cash
savings of at least $20m per annum, once fully implemented. We will
self-fund this investment and there will be no impact on the
dividend or our ability to execute any future acquisitions.
We now begin the process of consultation with our people and
this programme will run through 2016, being completed during 2017.
We will provide fuller guidance at our Results in March, but we
expect the impact to 2016 earnings will be neutral, with material
benefits being delivered progressively through 2017.
3. Capital Markets Day
Today Laird will be hosting a Capital Markets Day, which will
focus on substantial growth potential in our key markets and how
Laird can deliver superior performance in those markets. We will
also cover in more detail the rationale for the step changes we are
making to our operating model.
Commentating on today's news David Lockwood, Chief Executive,
said:
"We have delivered a solid performance this quarter, underpinned
by an increasingly diversified business, exemplified by the
strength and growing importance of our Wireless Systems division.
We are performing particularly well in connected transport, where
we offer excellent solutions in a strong market, with technology
playing an increasingly important role in the customer proposition.
Other important markets, such as telecoms and smartphones, have
become more challenging in recent months, although in the longer
term we remain very well positioned to benefit from the inexorable
trends for increased connectivity and ever smaller and higher
performance smartphone devices.
"In the shorter term, we expect full year earnings to be broadly
in line with consensus, (prior to exceptional costs, detailed
above).
"The changes announced today in redesigning our operating model
mean that Laird will be in an even stronger position to benefit
from developments around the Enterprise Internet of Things, as
technology plays an increasingly central and sophisticated role in
our lives."
(1) Organic constant currency growth is calculated in US$ on a
pro-forma basis, restating prior year comparatives as if
acquisitions were owned for the equivalent period in the preceding
year, and applying prior year exchange rates to convert current
year revenues to US$.
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.
Laird is a global leader in the field of innovative radio frequency
("RF") engineering.
Enquiries:
Laird PLC MHP Communications
Lucie Harwood Reg Hoare Jamie Ricketts
Head of Treasury and Investor Tim Rowntree Ollie Hoare
Relations
Tel: +44 (0)20 7468 4040 Tel: +44 (0)20 3128 8100
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTFEDFUAFISEDS
(END) Dow Jones Newswires
October 29, 2015 03:00 ET (07:00 GMT)
Laird (LSE:LARD)
Historical Stock Chart
From May 2024 to Jun 2024
Laird (LSE:LARD)
Historical Stock Chart
From Jun 2023 to Jun 2024
