29th Jul 2014 09:00
LONDON (Alliance News) - Acal PLC said Tuesday it has seen a good start to the financial year and expressed confidence in its future, as its sales excluding acquisitions on a like-for-like basis rose 4% in the year to date.
The electronics firm posted total sales of 12% in the period since April 1, excluding its acquisition of Noratel Group and at constant exchange rates. Also excluding this acquisition, the company said its order book remains strong at over GBP60 million.
Orders were slightly behind the previous year on a like-for-like basis due to a large one-off order in the previous year period. Acal said that July has seen growth in orders compared to the previous year.
In the year to date, gross margins rose, whilst underlying operating expenses remained broadly in line with the previous year on a like-for-like basis, it said.
Acal completed the purchase of Trafo Holdings AS, which trades as Noratel, this month. The GBP71.5 million acquisition was funded through a GBP55 million rights issue and a partial draw down of its new GBP70 million debt facilities. The company said Noratel's trading has continued to develop in line with its expectations.
The acquisition strengthens its specialist electronics business and expands its reach in Europe, China, India, Sri Lanka and the US, it said. It said it is currently undertaking activities to realise cross-selling opportunities and operating efficiencies.
"With steadily improving market conditions, we are confident about future opportunities. Our priorities remain to continue delivering organic growth rates well ahead of the market, as well as completing further value-enhancing acquisitions," said Chief Executive Nick Jefferies in a statement.
Shares in Acal were trading down 0.7% at 223.50 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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