28th Feb 2014 10:58
LONDON (Alliance News) - Electronics firm Laird PLC Friday reported a fall in pretax profit for the full year, after a slow first half.
The company, which provides components and solutions that protect electronic devices from electromagnetic interference and heat posted pretax profit of GBP43.2 million for 2013, down from GBP45.1 million in 2012.
Revenue increased to GBP537 million from GBP520.2 million a year earlier, but operating margin fell to 12.5% from 13.1%, reflecting the struggles experienced across a number of business segments.
The company said the first half showed weakness in some of its principal markets both as a result of the timing of new model launches by some of its major customers and the slowdown in capital investment by other customers associated with government sequestration measures in the US.
Revenue for the material business increased 6% to GBP342.8 million from GBP324.7 million boosted by the thermal arm which saw a 11% increase in sales to the IT and telecoms markets.
On the other hand, the wireless division which supplies a range of telematics and infrastructure antennae products saw revenue fall 1%. This was blamed on some "softness" in the industrial markets and the continued deferral of spending on rail replacement programmes.
Revenue from the infrastructure antennae systems business was 13% lower as a result of weaker demand from the industrial and public-safety markets, where sequestration measures by the US federal government had a significant impact on spending.
Despite the company's woes, the firm remained upbeat and said 2014 started with year-on-year growth consistent with its constant-currency expectations for the full year.
"2014 will see more benefits from innovation, particularly in Wireless Systems, delivered in the second half," Chief Executive David Lockwood said in a statement. "Our investment in manufacturing capacity in new territories such as Vietnam supports Performance Materials growth in the second half."
The company expects 2014 to be second-half weighted, as was 2013.
The company declared a final dividend of 7.9 pence per share, up from 6.6 pence, bring a total dividend of 12.0 pence, up from 10.0 pence.
The stock was trading at 316.80 pence Friday morning, down 12.20 pence or 3.7%, making it one of the biggest fallers in the FTSE 250.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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