Full Year Trading Update and Notice of Results

21 January 2016

Laird PLC

Full Year Trading Update and Notice of Results

Laird PLC, the global technology company, today announces a trading update and notice of results for its financial year ended 31 December 2015.

Trading Update

Group Performance

Overall, we expect earnings for 2015 to be in line with expectations and consistent with the position noted in our Q3 trading update.

Revenue for the year grew 12% to £630m (2015: £565m). On an organic1 basis in constant currency, US$ revenue grew 5%.

Revenue in sterling for the fourth quarter grew by 1% to £164m (Q4 2014: £163m). In US$, fourth quarter revenue was down 4% at $249m (Q4 2014: $260m) and on an organic1 basis in constant currency, US$ revenue was down 2%.

The group's diversification strategy continues to deliver positive results with growth in Wireless Systems and in all other Performance Materials markets outside telecoms and smartphones, off-setting the more current softness and cycles in those markets. Our recent acquisitions further advance this strategy. The changes to our operating model announced in October 2015 are progressing to plan with estimated costs and benefits remaining in line with the guidance previously given in Q3.

Divisional Performance

Performance Materials

Performance Materials revenue for the year grew 8% to £395m (2015: £366m). On an organic1 basis in constant currency, US$ revenue grew 1%.

Revenue in the final quarter was 7% lower, year on year, at £101m. In US$, revenue was 12% lower at $153m (Q4 2014: $173m) and on an organic1 basis in constant currency, US$ revenue was 10% lower. 

Revenue in the fourth quarter was impacted by the ongoing weaknesses in the telecoms and smartphone markets. This weakness was highlighted in our Q3 trading update and margins managed tightly, to adjust for these more challenging conditions.

Wireless Systems

Wireless Systems revenue for the year grew 18% to £235m (2015: £199m). On an organic1 basis in constant currency, US$ revenue grew 12%.

Revenue in the fourth quarter grew 17% to £63m (Q4 2014: £54m). In US$, revenue was up 11% at $97m (Q4 2014: $87m) and on an organic1 basis in constant currency, US$ revenue grew by 12%. 

A strong final quarter performance underpinned a very strong year of growth driven by ongoing demand in connected transport and in particular vehicle antenna sales. The integration of LSR, acquired in November 2015, is proceeding well. 

Completion of the acquisition of Novero

Laird also announces today that it has completed the acquisition of German based Novero, for a consideration of €65m (£50m). This acquisition brings together complementary skills and outstanding technologies and further enhances Laird's market strategy of providing complete vehicle connectivity solutions, creating a unique position in this market.

Commenting on today's announcement David Lockwood, Chief Executive, said:

"We have delivered another year of good growth, underpinned by an increasingly diversified business which helped mitigate a challenging final quarter in our Performance Materials business. Our Wireless Systems business continues to go from strength to strength, performing particularly well in connected transport where we offer excellent solutions in a strong market, further enhanced by our acquisitions.

Performance Materials remains well positioned to exploit the substantial potential for increased connectivity and consumer demand for higher performance and complex devices.

Strong momentum in Wireless Systems underpins confidence in another year of growth for the group in 2016. Performance will be more second half weighted than in 2015, if softer conditions in the smartphones market continue into the first half of the year.

Three years ago we set out to create a business that could achieve year on year growth independent of trends in particular markets and these results show that we have made great strides in delivering this."

Notice of Results

Full year results for 2015 will be announced on Wednesday 2nd March 2016.

1Organic 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.

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