Positioned for a strong H2, investing in the future and good level of cash conversion
Financial:
Revenue of £243.5 million (2012: £249.6 million) - Q2 consistent with Q1
Gross profit percentage maintained year on year at 39%
Investment in R&D up 28%
Increased capacity maintained to support H2 2013 ramp up
Underlying operating margin of 8.6% (2012: 12.4%)
Cash conversion of 80%
Underlying profit before tax £17.3 million (2012: £27.3m)
Underlying earnings per share of 5.4p (2012: 8.6p)
Interim dividend declared of 4.1 pence (2012: 3.4 pence), up 21% on 2012
Operational:
June order intake 14% higher than previous year
Tablet market more mature driving lower content
Broadening of the supply base by customers for mature product lines
Increasing contract wins based on Laird's differentiation
H1 softness in European industrial and US public safety markets
Outlook:
Full year result will be second half weighted due to product launches and seasonality
Expected growth from both uplift in activity and strategic progress
Increasing investment in R&D
David Lockwood, Chief Executive, said:
"Our confidence in delivering a strong second half comes from product launches from us and our customers, increasing market recognition of the differentiation we provide, and the continuing success of globalising our business model. This will be delivered from our robust operational platform and the benefits we are already seeing from collaborative selling.
In Performance Materials, we have secured design wins on customer product launches for the second half of the year which are expected to result in a significant uplift in revenue compared with the first six months. Long-term contract wins and good market penetration in Wireless Systems gives us confidence for this division's prospects. This, together with the increase in demand from markets such as telecoms infrastructure, underpins our confidence in our ability to grow the business.
We have made good progress against the strategy I laid out at the end of 2012 to penetrate further new markets and diversify our customer base which should reduce revenue volatility. This, together with our consistent good levels of cash generation, allows us to invest in our business for growth whilst also maintaining a progressive dividend policy."
