Half Yearly Report

31 July 2014

LAIRD PLC

RESULTS FOR THE SIX MONTHS TO 30 JUNE 2014

(unaudited)

Laird PLC today announces its interim results for the period from 1 January 2014 to 30 June 2014.

Good first half and on track for the full year, with continued operational and strategic progress across the business.

Financial highlights: robust performance in the first half

· Strong organic(i) year on year revenue growth of 10%, with good sequential growth from Q1 to Q2

· Reported revenue up by 4% to £252.6m (2013: £243.5m), after 8% currency headwind

· Underlying profit before interest and tax up 21% year on year, when expressed in US Dollars

· Increased investment in R&D to 9.6% of revenue, following significant increase in 2013

· Underlying return on sales(ii) of 9.3% (2013: 8.6%)

· Underlying profit before tax(ii) up 14% to £19.8m (2013: £17.3m)

· Statutory profit before tax £16.0m (2013: £10.2m)

· Underlying basic earnings per share(ii) of 6.1p, up 13% (2013: 5.4p)

· Interim dividend of 4.27 pence (2013: 4.10 pence), up 4%, reflecting progressive dividend policy

· Strong cash conversion of 97% (before funding Vietnamese investment)

Good first half, on track for the full year

In the first half, we continued to successfully implement the strategy we set out in 2012. We saw further benefits from cross-business collaboration, diversifying our customer base and our investment in innovation. We achieved growth across all our businesses, delivering a robust revenue increase on an organic basis. This underpins our unchanged expectations for the full year.

Operational highlights: continued operational and strategic progress across the business

· Benefitting from strategic actions to strengthen the business, combined with improvements in our markets

· All businesses delivered revenue growth on an organic basis, helped by stronger markets and customer diversification (revenue from our largest customer was level year on year)

· Successfully opened a new manufacturing facility in Vietnam and expanded our Korean design centre, broadening our geographic presence and customer diversity

· Strength of customer relationships and reliable fulfilment shown by awards such as Ford Motor Company's Recognition of Achievement for corporate responsibility and Platinum Supplier Quality Excellence certification from Caterpillar Inc.

Outlook: no change to expectations for the full year

· As stated in previous announcements, performance will be second-half weighted and we remain on track to achieve our expectations for 2014

· Stronger second half will be driven by new product launches by us and our customers and seasonal demand for consumer products

· Second half of 2014 will follow four quarters of significant year on year growth, providing momentum to the business across all areas of activity.

David Lockwood, Chief Executive, said:

"We are pleased with our first-half performance, which was in line with our expectations. It reflects the benefits of our strategic actions to strengthen the business, combined with improvements in our markets. Performance Materials continued to be the fastest growing part of the Group, with Wireless Systems building momentum as we invest to take advantage of its exciting prospects.

"Deepening customer relationships is a key focus and we made further progress. Collaboration across the business is enabling us to create more value for customers. Our businesses are joining together on new product development, while strengthened account management is increasing the range of products we supply to existing customers. Our new facility in Vietnam and the acquisition of Model Solution will also bring us closer to our customers. The awards we receive, such as those from Ford and Caterpillar, are evidence of the value we provide."

Explanatory notes

i) Organic growth is calculated on a pro-forma basis, restating prior year comparatives as if acquisitions were owned for the equivalent period of the prior year, and in US Dollars.

ii) Laird uses underlying results as key performance indicators. Underlying profit before tax and underlying earnings per share are stated before exceptional items, the amortisation of acquired intangible assets, deferred tax on acquired intangible assets, goodwill and US capitalised development costs, the gain or loss on disposal of businesses, the impact arising from the fair valuing of financial instruments and acquisition transaction costs. The narrative is based on underlying operating profit, profit before tax and earnings per share, as the directors believe that these provide a more consistent measure of operating performance.

iii) The weighted average number of shares used to calculate earnings per share was 265.6m in the first half of 2013 and 266.7m in the first half of 2014.

Notes to editors

Laird is a global technology company focused on providing components and solutions that protect electronic devices from electromagnetic interference and heat, and that enable connectivity through wireless applications and antennae systems.

Enquiries

Live webcast

A live audio webcast for shareholders and analysts will be available at 10.30am (UK time) at: http://www.laird-plc.com/laird/investor-relations/results-centre/

STRATEGIC PROGRESS

We continue to implement the strategy we set out in 2012 which, along with improvements in our markets, has helped us deliver a successful first half and gives us confidence in the full year.

Laird's strategic differentiation is based on innovation, reliable fulfilment and speed. We substantially increased our R&D spend last year and increased it further as a percentage of revenue in the first half of 2014. Our ability to innovate means we work with customers on their development plans. Our businesses are working more closely together to develop new products and we are increasingly creating new platforms to make our businesses more easily scalable, allowing us to bring new products to market more quickly.

For example, three of our business units collaborated to develop software embedded into Laird wireless devices, which companies in many industries can use to track their assets and manage data. Our collaborative approach also helped us deliver the industry's smallest high-performance, low-profile ultra high frequency vertical antenna, to meet critical customer needs in this market.

We continue to demonstrate our commitment to reliable fulfilment and speed. In the automotive market, for example, we achieved fewer than ten defects per million parts and achieved 100% on time to request, showing that we deliver high-quality products exactly when our customers want them. The customer awards we receive, such as those from Ford and Caterpillar, show that the value we offer is recognised by our customers.

Laird continues to penetrate attractive markets. We built a new manufacturing facility in Vietnam in the first half of the year, going from concept to opening in less than six months. In addition, we made progress with the move to larger, state-of-the-art premises for our Telematics business in Shanghai and Wireless Automation and Control Solutions in Warren, Ohio.

Along with the Model Solution acquisition in Korea, our new Vietnamese facility helps us to support major consumer electronics customers and to diversify our customer base in the region. Our growing customer diversity is shown by all businesses delivering revenue growth on an organic basis (revenue from our largest customer was 13% compared to 15% in the same period last year). The percentage of revenues from our "top 5" customers was 31% (2013: 33%).

Our customers are recognising the breadth of our capabilities, as collaborative selling by our businesses makes customers aware of the full range of our offering. As a result, we are playing a larger part in their plans. Notable successes include a contract win with a major North American automotive OEM, which has seen us increase our market share and content per vehicle.

Overall, we are well into the first phase of our strategy, in which we have professionalised our operations by making the right investments and addressing existing markets in the right way. This will continue to deliver growth in the coming years. The next phase of our development will be to build out new markets and new technologies, to further enhance value.

RESULTS

Revenue in the six months to 30 June 2014 in US Dollars grew by 12% to $421.3m (£252.6m) against $376.3m in 2013 (£243.5m). On an organic basis, revenue growth was 10%. Results stated in US Dollars can be found on page 7.

Underlying profit before interest and tax in US Dollars was 21% up at $39.2m (2013: $32.4m). The underlying return on sales margin was 9.3% (2013: 8.6%), as we continued to see the benefit of our investment in research and development.

Our underlying profit before tax in the period was £19.8m, 14% higher than in the first half of last year (2013: £17.3m). Statutory profit after tax in the first half was £9.4m (2013: £5.5m).

There was an exceptional net credit of £4.5m in the period.

Underlying basic earnings per share in the period rose 13% to 6.1 pence (2013: 5.4 pence).

Operating cash flow after capital expenditure was £19.8m (2013: £16.7m). This represented operating cash conversion after capital expenditure of 97% (2013: 80%).

Net borrowings at the end of June 2014 were £132.3m (December 2013: £109.5m). We have a strong balance sheet, providing us with the financial resources to continue to invest in both R&D and our capacity, as well as to take advantage of opportunities to make further acquisitions.

DIVIDEND

After substantial increases in the dividend over the last three financial years, the Board is adopting a progressive dividend policy, increasing returns to shareholders and taking into account both the underlying profitability of the business and its cash requirements, allowing dividend cover to be rebuilt over time.

The Board has therefore declared an interim dividend of 4.27 pence per share, up 4% on 2013. This is payable on 5 December 2014 to shareholders registered on 7 November 2014.

PERFORMANCE MATERIALS DIVISION

Our Performance Materials Division has the ambition to 'own the electronic environment'. Its products provide critical protection for a wide range of electronic devices, at the chip, printed circuit board and system levels, allowing these devices to function and connect effectively.

Performance Materials has market leading positions in electromagnetic interference shielding ("EMI") and in active and passive thermal management and solutions. It designs and supplies a range of EMI shielding materials, thermal management solutions and signal integrity products.

Expressed in US Dollars, revenue in the half year increased by 15% compared with 2013. On an organic basis, revenue was 12% higher. The division benefited from strong markets, more frequent product launches by us and our customers, and market share gains.

EMI provided 64% (2013: 64%) of divisional revenues in the period, Thermal 27% (2013: 25%) and Signal Integrity Products 9% (2013: 11%).

EMI

Revenue from our EMI business was 12% higher (in US Dollars) than in the first half of 2013.

The telecoms industry is investing significantly in new infrastructure as it rolls out LTE (4G), particularly in China. This was a driver of EMI growth in the first half.

Rising demand for vehicles meant a strong automotive market and we gained share in this area. We are also benefiting from the ongoing increase in vehicles' electronic content.

Demand for smartphones from our major customers was strong. Further progress has been made with our second largest customer in this sector, with the successful opening of our Vietnam facility - which went from concept to qualification in just six months - and the expansion of our Korean business design centre.

Demand in the gaming market continued to be strong, although we expect revenue in gaming to decline in the second half.

Growth in these markets has more than offset ongoing weakness in the tablet market, where a lack of innovation by customers has seen the market grow more slowly and become more competitive. However, we have also seen some benefit from a rebound in sales of notebook computers.

Thermal

The key market segments for our Thermal business include telecoms, IT and medical. Revenue in this business was 18% higher (in US Dollars) than in the first half of 2013.

Revenue growth in Thermal was largely driven by the investment in telecoms infrastructure noted above. The rise in demand for notebooks and the strength of the automotive market were also beneficial.

Technical issues have held back the commercialisation of the Thin Film (Nextreme) product line. It is taking longer than originally expected to achieve a meaningful revenue stream, which in all likelihood will not occur within the earn-out period agreed when our Thermal business acquired this development project in February 2013.

Signal Integrity Products

Signal Integrity Products serves customers in the IT, automotive, telecoms and consumer markets. Revenue from this business was marginally up in US Dollars, compared with the first half of 2013.

As with our other Performance Materials businesses, Signal Integrity Products benefited from the demand caused by the telecoms infrastructure investment, as well as continued demand for gaming products.

Model Solution

In April 2014, we announced the acquisition of 51% of Model Solution which gives us a new design prototyping capability and strengthens our position in the key market of Korea. Model Solution has contributed revenue of $6.4m in the period and is starting to collaborate well with our other businesses. For example, it is helping a customer to develop a range of wearable technologies, for which we may ultimately provide both design and components.

WIRELESS SYSTEMS DIVISION

Our Wireless Systems Division enables wireless communication, for customers requiring high performance and reliability in challenging environments. It holds leading positions in its markets, designing and supplying a range of telematics and infrastructure antennae products, machine-to-machine ("M2M") wireless modules and software enabled control systems.

The division showed good momentum in the first half, with revenues increasing by 8% in US Dollars.

We continued to invest in R&D and expand our capacity, which positions us to take advantage of the exciting potential we see in this business.

Telematics/M2M provided 61% (2013: 61%) of the division's revenue, while Wireless Automation and Control Solutions contributed 20% (2013: 21%) and Infrastructure Antennae Systems contributed 19% (2013: 18%).

Telematics/M2M

Revenue from this business was 7% higher (in US Dollars) than in the first half of 2013.

Telematics' revenue increase was driven by underlying growth of existing programmes for customers and the business was also successful in winning new work. For example, it secured a contract to supply M2M GPS technology for tracking solutions in North and South America, which will start towards the end of this year. It has also won significant new global programmes with major customers, with increasing Laird content and market share, as well as new programmes with automotive OEMs in China.

The first half also benefited from the refresh of our Bluetooth product line in 2013. We saw a notable increase in sales across a number of sectors, reflecting the widespread use of Bluetooth applications.

We added new programmes with medical OEMs, as we leveraged our application expertise and demonstrated our thought leadership in the medical space.

Wireless Automation and Control Solutions

Revenues for WACS were 3% higher (in US Dollars) than in the first half of 2013.

Growth in this business was driven by the underlying health of its markets and through our launch of new products in the industrial and rail sectors. We have introduced a new operator control product for the rail industry, which should generate revenues later in 2014. The business also secured a significant contract win in Europe.

Infrastructure Antennae Systems

Infrastructure Antennae Systems generated revenue growth of 14% (in US Dollars), compared with the first half of 2013.

This growth was underpinned by strong markets in telecoms, with demand for antennae installation to support the LTE/4G roll-out, and in industrial M2M markets. We also continued to win new business with a major provider of wireless LAN technology, as well as with tier 2 manufacturers in this market.

BOARD CHANGES

As first announced in November 2013, Dr Martin Read CBE succeeded Nigel Keen as Chairman of Laird PLC following the conclusion of the Annual General Meeting on 2 May 2014. The Board is extremely grateful to Nigel for his considerable service to Laird, over many years.

OUTLOOK

The good start to 2014 means we are on track to meet our expectations for the full year. As in 2013, we expect performance will again be significantly second-half weighted, with further revenue growth in the remainder of the year from product launches by us and our customers, the start of new contracts and seasonal demand for consumer products all contributing. Operational gearing will have a material beneficial impact in the second half, as it did in the same period last year.

The successful execution of our strategy is the key to delivering sustainable growth and our strategic progress underpins our confidence in the year as a whole.

FINANCE REVIEW

Revenue

Revenue was £252.6m in the first half of 2014, against £243.5m in 2013. As much of our revenue and costs is transacted in US Dollars, the result in Dollars is a better guide to performance. In US Dollars, revenue was 12% higher year on year, with Performance Materials revenues up 15% and Wireless Systems revenues rising by 8%. The table below summarises revenue in US Dollars for each division.

Revenue on an organic basis was 10% higher in the first six months of 2014. For acquisitions, this is calculated on a pro-forma basis, based on prior-year comparatives as if we had owned the acquired businesses for the equivalent period of the prior year. Revenue on an organic basis for the "base" businesses (excluding the acquisitions) was also 10% higher. Growth with our two largest customers in smart phones, growth in gaming consoles, as well as, growth in automotive and telecoms markets (in particular for 4G/LTE mobile infrastructure) in both divisions, were the principal drivers of that top line growth, offset in part by sluggish revenues in the tablet market.

Underlying Profit

The table below shows underlying operating profit in US Dollars for the business segments. Margins were 9.3% in the first half of 2014 (2013: 8.6%). Return on sales margins increased year on year in both divisions.

The table below provides further analysis in US Dollars of our underlying operating profit. The gross profit percentage has increased marginally year on year. SG&A has increased year on year but is lower relative to revenue, falling to 21.6% of revenue from 22.8% a year earlier as we benefit from economies of scale brought by the increase in revenue. There has been an increase in R&D in the first half to $40.6m (9.6% of revenue) up from $34.2m in 2013, (9.1% of revenue) as we continue to drive innovation and invest for growth going forward.

Underlying profit before interest and tax in US dollars grew by 21%. Underlying profit before tax in the half year increased by 14% to £19.8m (2013: £17.3m). Underlying profit is defined as profit before tax, exceptional items, amortisation of acquired intangible assets, the gain or loss on sale of businesses, the impact arising from the fair valuing of financial instruments, and acquisition transaction costs.

Exceptional Items

There was an exceptional net credit of £4.5m in the period. As part of this, the exceptional credit of £5.5m was due to the release of the contingent consideration of £6.8m arising from the acquisition of the Nextreme development project in 2013 offset in part by £1.3m of Nextreme asset write downs. Ongoing technical issues have delayed the commercialisation of Nextreme and it is therefore unlikely that a meaningful level of revenue will be achieved in the period subject to the earnout.

There was a £1m exceptional cost in respect of acquisition transaction costs for Model Solution which was acquired in April of this year.

Profit after tax

The profit for the period was £9.4m (2013: £5.5m).

Finance Costs

Finance costs, before fair value adjustments, were £3.7m (2013: £3.7m). Interest cover was 10.7 times. Fair value adjustments on financial instruments were £(2.1)m (2013: £0.9m) due to foreign exchange fluctuations.

Taxation

The underlying tax charge on underlying profit before tax is equivalent to an average tax rate of 18.5% (2013: 17.5%), which is our best estimate of the outcome for the 2014 full year.

Underlying Earnings

Underlying earnings per share were up by 13% to 6.1p (2013: 5.4p). Underlying earnings are based on underlying profit less underlying tax attributable to the parent company. The average number of shares in issue in the first half of 2014 was 266.7m, compared with 265.6m in the first half of 2013.

Cash Flow

In the first half of 2014, Laird produced an operating cash flow surplus of £19.8m (2013: £16.7m), a cash conversion of 97% of operating profit if we exclude £3.0m for the investment in the new business in Vietnam and supporting business design centre.

There was a working capital inflow of £2.1m, as would be expected, given that revenues in the second quarter of 2014 were lower than in the fourth quarter of last year. Our revenues are seasonally weighted to the second half of the year and in particular to the fourth quarter. We expect the working capital inflow to more than reverse in the second half of the year.

Capital expenditure, including the investment in Vietnam in Performance Materials, was 1.4 times depreciation in the first six months of this year. This year, capital investment will be higher than our long term average of 3% of revenue. In addition to the investment in Vietnam, in Wireless Systems, the Telematics business is moving to a larger plant in Shanghai and the WACS business is moving to a larger plant in Warren, Ohio.

Net Borrowings and Debt Facilities

Overall, net borrowings increased during the half year by £22.8m, to £132.3m. Most of our borrowings and cash deposits are in US Dollars. As at 30 June 2014, £27.7m of borrowings were in Euros.

A cornerstone of Laird's financial planning is to ensure that it maintains committed loan finance which provides sufficient headroom above expected borrowing requirements and has a significant proportion with terms that exceed one year. Laird has in place £250m of committed bilateral revolving credit facilities. As at the end of June 2014, £225m expires at the end of March 2019. Since the year end, the remaining £25m has been extended and will not expire until July 2019. In addition, Laird has in issue $140m (£82.4m) of US Dollar Private Placement loan notes, which have remaining terms of four months (2014, $97m) and two years (2016, $43m). On 30 July 2014, Laird entered into another Private Placement note agreement which will be drawn down in September of this year. This is comprised of $13m of six year notes and $92m and €15m of seven year notes.

Covenants

A key consideration for financial planning is to maintain sufficient headroom between borrowings and the ceiling set by the associated covenants. Laird's bank facilities and US Private Placement loan notes contain two principal financial covenants: net debt / EBITDA (earnings before exceptional items, interest, tax, depreciation and amortisation), and interest cover.

For the six months ended 30 June 2014, net borrowings were 1.5 times EBITDA, against the maximum permitted of 3.5 times. Interest cover was 10.7 times, against the minimum requirement of 3.0 times.

We routinely estimate our expected headroom against our covenants and test their sensitivity to a number of scenarios, to assess our ongoing compliance. We do not anticipate approaching our covenant limits in the foreseeable future.

Currencies in 2014

The average and period-end exchange rates are set out in note 4.

We aim to balance local currency exposures but the business operates globally, which can create currency imbalances where operating costs do not match revenues in the same currency. In the first half of 2014, 75% of revenues were invoiced in US Dollars, 11% in Renminbi and 11% in Euros. We had a substantial US Dollar surplus in the first half, as just under 48% of costs are in US Dollars and a relatively small Euro surplus, with 8% of our costs being in Euros. In most other currencies, costs exceeded revenues, the most significant being the Renminbi which accounted for 32% of costs. We aim to cover forward at least 75% of the unmatched cash flows one quarter ahead.

In addition, there is a translation impact in converting profits into our reporting currency (Pound Sterling). Each US $0.01 appreciation against Sterling approximates to an annual increase in operating profit of £0.4m.

The majority of our assets are held overseas and these are hedged in part by foreign currency loans.

Principal Risks

Laird operates globally in varied markets. The principal risks and uncertainties that are or may be faced are disclosed in the 2013 Annual Report and we expect them to continue to be relevant for the remaining six months of the year.

The risks set out in the 2013 Annual Report include the competitive markets in which we operate, macroeconomic and political factors, exposure to increases in labour costs in China and world commodity prices, the requirement to meet increasingly stringent environmental laws and regulations, and risks related to brand management, our products and operational continuity.

Total Equity

Total equity at 30 June 2014 was £383.8m (30 June 2013: £453.6m). The reconciliation of total equity is set out in the Group statement of changes in equity.

Statement of directors' responsibilities

The directors confirm that to the best of their knowledge this condensed set of financial statements has been prepared in accordance with IAS 34 as adopted by the European Union, and that the interim management report set out on pages 1-10 herein includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R of the Disclosure and Transparency Rules. The Board of directors of Laird PLC that served during the six months to 30 June 2014 and their respective responsibilities are set out in the Laird PLC 2013 Annual Report. Details of the changes since the year end are set out on page 6 of this Report.

By Order of the Board:

D C Lockwood, Chief Executive

J C Silver, Chief Financial Officer

30 July 2014

INDEPENDENT INTERIM REVIEW REPORT TO LAIRD PLC

Introduction

We have been engaged by the Company to review the condensed set of financial statements in the interim report for the six months ended 30 June 2014 which comprises the Group income statement, Group statement of comprehensive income, Group statement of changes in equity, Group statement of financial position, Group cash flow statement and the related notes 1 to 15. We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with guidance contained in International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.

Directors' responsibilities

The interim report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

As disclosed in note 2, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this interim report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the interim report based on our review.

Scope of review

We conducted our review in accordance with ISRE (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim report for the six months ended 30 June 2014 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Ernst & Young LLP

London

30 July 2014

Group income statement

(unaudited)

* attributable to equity shareholders of the parent company

** before amortisation of acquired intangible assets, exceptional items, deferred tax on acquired intangible assets, goodwill and US capitalised development costs, the gain or loss on disposal of businesses, the impact arising from the fair valuing of financial instruments and acquisition transaction costs.

Group statement of comprehensive income

(unaudited)

Group statement of changes in equity

(unaudited)

Group statement of financial position

(unaudited)

Group cash flow statement

(unaudited)

Notes to the Interim Report

(unaudited)

1 Authorisation of interim financial statements

The Group's interim financial statements for the period ended 30 June 2014 were authorised for issue by the Board of Directors on 30 July 2014. Laird PLC is a public limited company incorporated and domiciled in England and Wales and its ordinary shares are traded on the London Stock Exchange.

The comparative financial information for the period to 30 June 2013 and the year ended 31 December 2013 has been extracted from the published financial statements of Laird PLC. The consolidated interim financial information does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. These interim results are unaudited but have been reviewed by the Group's auditor. The statutory accounts for the year ended 31 December 2013 have been reported on by the Group's auditor and delivered to the registrar of companies. The report of the auditor was unqualified and did not contain the statements under section 498(2) or (3) of the Companies Act 2006.

Further copies of the Interim announcement may be obtained from Laird PLC's registered office at 100 Pall Mall, London SW1Y 5NQ.

2 Basis of preparation

Laird PLC prepares its Annual Report and Accounts on the basis of IFRS as adopted for use by the EU. The financial information presented in this Interim Report has been prepared in accordance with the accounting policies expected to be used in preparing the 2014 Annual Report and Accounts which do not differ significantly from those used in the preparation of the 2013 Annual Report and Accounts. 

The Group has applied, for the first time, IFRS 10 Consolidated financial statements. Several other new standards and amendments apply for the first time in 2014, however, they do not impact the interim condensed consolidated financial statements of the Group.

The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and for this reason, they continue to adopt the going concern basis in preparing the financial statements of the Group.

The condensed set of financial statements included in this Interim Report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the EU.

Notes to the Interim Report

(unaudited)

3 Segmental analysis

The reportable segments for continuing operations (as defined by IFRS 5) are as follows:

Performance Materials - designs and supplies a range of EMI shielding materials, thermal management solutions and signal integrity products to a wide variety of electronic devices; and

Wireless Systems - designs and supplies a range of high specification wireless antennae, and machine-to-machine ("M2M") wireless modules for a number of markets including infrastructure and automotive markets.

Unallocated costs are central costs related to managing the parent company.

Notes to the Interim Report

(unaudited)

3 Segmental analysis (continued)

Unallocated assets in the above table include cash and cash equivalents, retirement benefits and other debtors.

Notes to the Interim Report

(unaudited)

4 Exchange rates  

The results and cash flows of overseas subsidiaries are translated into sterling using weighted average rates of exchange for the period. The principal rates used were as follows:

5 Exceptional items

Notes

(a) The asset write downs of £1.3m in 2014 to their recoverable amount is as a result of a

reduction in future expected revenues from the Nextreme development project which was acquired in 2013.

(b) The total cash outlay for exceptional costs in 2014 was £6.7m (June 2013, £1.5m).

£5.9m was in respect of prior year exceptional costs, of which £4.3m related to the

buyout of a Manufacturing Representative agreement.

(c) The tax effect on exceptional items in 2014 is a £0.8m charge (June 2013, £Nil).

(d) Restructuring costs include redundancy and site rationalisation and closure costs.

(e) Discontinued operations in 2013 comprise the Handset Antennae business.

Notes to the Interim Report

(unaudited)

6 Discontinued operations