The ongoing rollout of superfast ‘4G’ wireless technology in the US and China has both required telcos to make significant infrastructure investments and unleashed a new wave of next-generation mobile devices. Those trends helped wireless connectivity and device protection specialist Laird (LRD) grow pre-tax profit - adjusted for one-off items - by 14 per cent to just under £20m.
Laird also benefited from launching new products and the car industry's thirst for electronics. This helps explain sales growth of 6 and 8 per cent respectively at its performance materials and wireless systems segments. It also opened a new manufacturing facility in Vietnam, and expanded its South Korean design centre, boosting its access to current and potential customers such as Samsung, LG and Kia.
Over the past two years, Laird has ramped up its research and development spending by about a half to $41m (£24m) - roughly 10 per cent of total revenues. That has enabled it to lead the market rather than chase it, says chief executive David Lockwood. He is "really chuffed" with Laird’s top-line growth and sees "no reason why it can’t continue". The seasonal flurry of demand for consumer electronics in the second half may help.
Broker Numis expects pre-tax profits of £64.7m, giving EPS of 19.3p, rising to £78.4m and 23.1p.
| LAIRD (LRD) | ||||
|---|---|---|---|---|
| ORD PRICE: | 285p | MARKET VALUE: | £763m | |
| TOUCH: | 284-285p | 12-MONTH HIGH: | 335p | LOW: 188p |
| DIVIDEND YIELD: | 4.3% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 142p* | NET DEBT: | 35% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 244 | 10.2 | 2.1 | 4.10 |
| 2014 | 253 | 16.0 | 3.5 | 4.27 |
| % change | +4 | +57 | +67 | +4 |
Ex-div: 5 Nov Payment: 5 Dec *Includes intangible assets of £517m, or 193p a share | ||||
