Highlights
2013 was the year in which we made a step change in the way we invest in our company. Research and development spend was 28% higher, yielding new products and technologies and demonstrating to our customers that we are a thought leader in our field, as well as a strong partner. We have become an increasingly unified force under a 'One Laird' banner enabling collaborative development, marketing and selling. Finally we have developed our CSR efforts which have enhanced our reputation internally and externally making us more attractive to customers and existing and future employees.
Financial highlights:
Revenue of £537 million, up 3% on 2012
Strong second half organic revenue growth of 8% (first half organic revenue was 7% lower), up 1% for the full year
Underlying PBIT more than doubled in second half, over the first half of 2013
Underlying profit before tax for the full year of £60.1 million, down 1%
Statutory profit before tax £43.2 million (2012, £45.1 million)
Operating margin of 12.5% (2012, 13.1%)
Exceptional items recognised in 2013 of £4.6 million (2012, £2.1 million)
Full year underlying earnings per share of 18.6 pence, down 3%
Final dividend per share declared of 7.9 pence (2012, 6.6 pence). Total 2013 dividend of 12.0 pence
Operational highlights:
A stronger second half, as anticipated, with capacity utilised which realised a more than 20% increase in revenue and a more than doubling of profits in the second half of 2013 compared to the first half of the year
Strong positions on new products launched delivered revenue growth in the second half of the year
Increased investment in R&D (up 28%) is expected to provide a strong platform for growth
Innovation and collaboration driving tangible results with new contract wins
David Lockwood, Chief Executive, commented:
"2013 ended with a strong second half. 2014 has commenced with year on year growth consistent with our constant currency expectations for the full year.
The good progress we have made has been grounded in the investments executing our strategy and delivering strategic differentiation. This has deepened our relationships with existing customers and allowed us to win new customers and develop new markets. It is this strategic progress that underpins our confidence for 2014 and beyond.
2014 will see more benefits from innovation, particularly in Wireless Systems, delivered in the second half. This includes the commencement of already secured contracts for next generation M2M products. Our investment in manufacturing capacity in new territories such as Vietnam supports Performance Materials growth in the second half. As a result, as in 2013, we expect 2014 to be second half weighted."
