Interim Management Statement

6 May 2011

LAIRD PLC

Interim Management Statement

Laird PLC ("Laird") today issues its Interim Management Statement for the period from 1 January 2011 to 6 May 2011.

Overview

Overall, performance in the year to date has been consistent with our expectations and as set out in our Full Year Results Announcement in March, and we have seen a continuation of the trends experienced in the second half of 2010. Following a satisfactory first quarter we have seen a further pick up in orders and sales in April and we are benefitting from the diversification of our customer base and the actions we have taken.

Strategy

Our strategy remains one of offering a unique capability and adding value to our customers, through the provision of a broad range of performance critical electronics products, systems and solutions, operating in a number of highly specialised "niche" electronics applications. While increasingly not being dependent on a single customer or market segment, we focus on specialist, high growth markets, exploiting innovation, technology and product convergence, increasingly developing and providing systems and controls that combine hardware and software. We continue to develop a broadly based product offering, combining specialised materials science and component products; personal, fixed and mobile antennae, and wireless / radio frequency systems and controls.

Trading Performance

Total revenue in the first quarter of 2011 was £145.3 million, up 12% (up 15% in US$) compared with £129.4 million in the first quarter of 2010. The operating margin also improved compared with the same period in 2010, leading to a 46% growth in underlying pre tax profits. The majority of our businesses performed well, delivering good growth in revenues and underlying operating profits.

In our Performance Materials Division, revenue in the first quarter was £73.5 million, up 14% on the same quarter in 2010 (in US$: up 16%). Chinese New Year in 2011 caused some softening in demand during February, but during March and April orders and sales in the Division recovered, boding well for the Division's progress during the second quarter. Klüver, acquired in March 2011, looks set to perform in line with our expectations at the time of the acquisition and initial feedback from major customers has been very positive.

In our Wireless Systems Division, excluding Handset Antennae Systems, revenue in the first quarter was £46.7 million, up 74% on the same quarter in 2010 (in US$: up 79%), organic revenue growth in the quarter was 39%, reflecting the benefits of the Cattron acquisition and a particularly strong performance from our Telematics and Wireless Machine to Machine product lines. Cattron itself performed ahead of expectations; revenue in the first quarter was up over 40% on its own revenues in the same period of 2010, with operating margins remaining strong.

In our Handset Antennae product line, antennae unit volumes were 5% higher in the quarter, compared with the same period in 2010, although shipments to our largest customer fell by some 10%. Average selling prices for antennae fell by 30% as a result of continuing changes in product mix and price reductions. Consequently, revenue from this product line fell to £23.5 million ($37.6 million) in the quarter, compared with £31.8 million ($49.7 million) in the same period of 2010. Despite the restructuring actions taken (of which some of the benefits are still to be realised) the product line was at break-even in the quarter. The competitive environment for handset antennae has intensified, and we are continuing to take actions to improve the business as well as actively reviewing the strategic options for this product line.

Revenue from our Mechanisms product line, which is progressively being closed down, fell as expected to £1.7 million ($2.8 million), compared with £6.2 million ($9.7 million) in the first quarter of 2010. We expect to have completed the currently running programmes, as these go end of life, during the third quarter, with remaining revenues of some £1 million to come. The Mechanisms product line produced a small operating profit in the period.

Revenue from our largest customer was 11% of our total revenue in the quarter, compared with 23% in the first quarter of 2010, further reducing our dependence on a single customer or market segment.

The majority of our businesses performed strongly. Total revenue in the first quarter, excluding Mechanisms and Handset Antennae Systems, was £120.1 million, up 31% (in US$: up 35%) compared with £91.4 million in the same period of 2010. Organic revenue growth in the quarter on the same basis was 24%. Operating margin, again excluding Mechanisms and Handset Antennae Systems, was 9.0% in what is generally our weakest quarter.

We continue to monitor closely the events in Japan and the possible effects on our business. Our own sales into Japan itself (as opposed to sales to our Japanese customers) remain relatively small, and we have taken actions to mitigate any supply chain issues arising from our Japanese sourced components. Our current estimates are that our 2011 revenues may be affected by some $5 million, largely in the second half of 2011. This relatively small effect on our prospective performance is largely as a result of our customers' own supply chain issues, offset by some opportunities to take market share from other competitors.

Financial Position

Net borrowings at 31 March 2011 were, as expected, higher than at 31 December 2010 largely due to expenditure on the Klüver acquisition. Capital expenditure in the first quarter was below depreciation. Our financial position remains strong.

We have successfully refinanced our revolving banking facilities. In April 2011 we put in place £205 million of committed 5 year facilities, replacing facilities of the same amount (with broadly similar covenants) due to expire in August 2012.

Directorship Change

As part of Laird's ongoing development we have been reviewing the senior management structure. In order to shorten reporting lines, Marty Rapp, who has held the position of Managing Director of Laird PLC since January 2005, will be leaving the Company on 31 August 2011. Marty has headed Laird Technologies since its creation 15 years ago, and has been part of the team that has driven the successful development of that business into what Laird is today. We wish him every success in the future.

Outlook

We continue to develop those of our businesses which have strong revenue and margin growth prospects, while addressing the increasingly small minority which no longer show the same potential. Our business has good momentum, and we believe that we are well placed to deliver further strong progress during the remainder of the year.

For enquiries:

Further Announcements:

Laird PLC will announce its Interim Results for the Half Year to 30 June 2011, on 28 July 2011.