Fast growing imaging specialist Andor was forced to release its half-year results early to deliver a shock profit warning that sent the shares crashing 60 per cent. Although the first-half figures were slightly better than expected, problems with orders expected to have landed in the second half means the group won't meet full-year forecasts.
Chief executive Conor Walsh said that specific issues at two of its large OEM customers – which buy Andor's cameras to incorporate into lab equipment – meant that £3m of orders had been lost, and were unlikely to be recouped given the continuing pressure on research funding in the US, which meant America's sales fell 11 per cent to £10.1m in the period.
However, underlying weakness in the US continues to be offset by strength in Europe and Asia Pacific, which grew sales 18 and 35 per cent, respectively. While the US is spending less on research & development, Asian economies in particular are upping investment, and Mr Walsh said that strong demand in markets such as China, India and South Korea could soon be followed by similar growth in the Middle East and Russia.
Housebroker Investec Securities has downgraded its full-year pre-tax profit forecast by 12 per cent to £9.9m, which lowers EPS by 8 per cent to 23.2p (2011: £9.8m/22.4p).
ANDOR TECHNOLOGY (AND) | ||||
|---|---|---|---|---|
| ORD PRICE: | 389p | MARKET VALUE: | £119m | |
| TOUCH: | 389-394p | 12-MONTH HIGH: | 690p | LOW: 320p |
| DIVIDEND YIELD: | nil | PE RATIO: | 17 | |
| NET ASSET VALUE: | 138p* | NET CASH: | £14.8m | |
| Half-year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 28.3 | 3.98 | 10.8 | nil |
| 2012 | 31.2 | 4.96 | 12.4 | nil |
| % change | +10 | +25 | +15 | - |
*Includes intangible assets of £16.4m, or 53p a share | ||||
