30th Nov 2015 08:01
LONDON (Alliance News) - Electronics supplier Acal PLC on Monday said its pretax profit rose in the first half thanks to better margins in the business, prompting it to edge up its interim dividend.
Acal said its pretax profit for the six months to the end of September was GBP4.8 million, up from GBP100,000 a year earlier, as revenue rose to GBP142.2 million from GBP120.9 million, outpacing the corresponding rise in its costs from the rise in sales. In constant currencies, revenue rose 30% and was up 2.0% on a like-for-like basis.
The company said it would pay an interim dividend of 2.33 pence per share, up from 2.2p.
The group said it made good progress in the half, with a shift towards design and manufacturing sales making up more of its overall revenue, growth in international sales and strong cross-selling activity. Growth was also driven by the acquisition Noratel and Foss, both of which are performing well.
"We are encouraged by European macro indicators although remain cautious over the international economic environment and the continuing impact of foreign exchange translation headwinds. Accordingly, our earnings forecast for the full year remains unchanged and in line with our expectations," said Chief Executive Nick Jefferies.
"With several value-enhancing acquisition opportunities in the pipeline with the resources to fund them, and further scope to drive organic growth from our differentiated offering we are confident of making further progress in line with our strategy," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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