TIDMLRD
RNS Number : 8971U
Laird PLC
24 January 2017
24 January 2017
LAIRD PLC (the "Company")
FULL YEAR UPDATE ON TRADING AND FINANCIAL POSITION
Laird plc, the global technology company, today announces a
trading update and notice of results for its financial year ended
31 December 2016.
Overview
Overall trading for the year has been consistent with the
statements issued on 19 October and 2 December 2016. We continue to
expect full year underlying profit before tax to be around GBP50
million and the year-end net debt to EBITDA to be within the
Group's pre-existing covenant of 3.5x.
We are on track to announce a proposed rights issue with our
full year results to raise up to GBP185 million, underwritten on a
standby basis by JP Morgan Cazenove (as announced on 2 December
2016).
Debt facilities and covenants
Discussions with our debt providers were successfully completed
in December 2016. Whilst we expect year end net debt to EBITDA to
be within our pre-existing covenant limit of 3.5x, we agreed a
one-time extension of the covenant to 4.0x net debt to EBITDA for
the period ended December 2016 as a precaution.
Group Performance
Revenue for the year grew 27% to GBP802m (2015: GBP630m). On an
organic basis at constant currency(1) , revenue was down by
0.4%.
Revenue in sterling for the fourth quarter grew by 38% to
GBP227m (Q4 2015: GBP164m). On an organic basis at constant
currency(1) , revenue was up 9%.
Revenue growth in the fourth quarter was underpinned by
continued growth in Wireless Systems and improved performance from
Performance Materials, as the ramp up in production normally seen
earlier in the second half came through later in the year.
The operational improvement programme remains on track. As
previously stated, the programme will deliver annualised savings of
at least $20m from 2018, with $15m expected in 2017. The total
P&L cash cost of the project remains at c.$60m, much of which
was provided for in 2015, with c.$30m paid by the end of 2016 and
the balance of c.$30m to be invested in 2017.
Divisional Performance
Wireless Systems
Wireless Systems revenue for the year grew 59% to GBP373m (2015:
GBP235m). On an organic basis at constant currency(1) , revenue
grew 4%.
Revenue in the fourth quarter grew 67% to GBP105m (Q4 2015:
GBP63m). On an organic basis at constant currency(1) , revenue grew
by 8%.
Revenue growth for the full year and the quarter was driven by
continued good performance in both Connected Vehicle Solutions
(CVS) and Connectivity Solutions (CS), partially offset by the
trading challenges in our Wireless Automation and Controls business
(WACS). Actions taken in Novero, the business acquired in January
2016 and which forms part of CVS, have now stabilised the business
and we continue to expect to deliver modest profitability at Novero
in 2017.
Performance Materials
Performance Materials revenue for the year grew 9% to GBP429m
(2015: GBP395m). On an organic basis at constant currency(1) ,
revenue was lower by 3%.
Revenue in the final quarter was 21% higher, year on year, at
GBP122m (Q4 2015: GBP101m). On an organic basis at constant
currency(1) , revenue was 10% higher.
The Division performed in line with expectations in the quarter
having had a weaker Q3, with slightly improved margins in Precision
Metals. Actions have been taken to improve performance in Precision
Metals and with our new Divisional President Carmen Chua joining in
February 2017 the review of this business will continue.
Commenting on today's announcement Tony Quinlan, Chief
Executive, said:
"We are pleased to confirm that trading for 2016 was in line
with our revised expectations, albeit substantially reduced. We
have taken decisive actions to address the issues affecting
profitability in 2016 and the proposed rights issue to strengthen
the balance sheet remains on track.
Laird remains well positioned to take advantage of strong market
trends for many of its products and is investing to benefit from
these in the future. At the same time, we will maintain a resolute
focus on improving the financial performance of the business and
the operational improvement programme will help drive efficiencies
and more closely align Laird with customers."
Notice of Full Year Results
The Group's full year results for 2016 will be announced on
Tuesday, 28(th) February 2017.
(1) Organic constant currency growth is calculated by
eliminating the revenue from acquisitions made for a period of
twelve months from the acquisition date, and applying prior year
exchange rates to convert current year revenues to GBP. The
Directors believe that this measure provides investors with
information regarding the underlying revenue performance of the
Group as it eliminates the effect of acquisitions and the
translation effect of currency exchange movements from period to
period. Reconciliations to IFRS measures will be provided with the
full year results.
This announcement contains inside information
About Laird:
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
Tony Quinlan, Chief Executive Reg Hoare Jamie Ricketts
Officer Tim Rowntree Ollie Hoare
Kevin Dangerfield, Chief
Financial Officer
Lucie Harwood, Head of Treasury
&
Investor 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
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