The popularity of mobile devices, surging data consumption and rising usage of electronics in cars and hospitals have buoyed business for Laird (LRD). The wireless connectivity specialist - which also makes protective casings for electronics - posted a 12 per cent increase in group operating profit.
Laird's performance materials segment saw earnings climb 11 per cent to $89m (£58m). That reflected a raft of smartphone launches last year - led by Apple's iPhone 6 - and telecom companies' hefty investments in high-speed '4G' broadband. Meanwhile, rising demand for automotive and machine-to-machine applications sent operating profit up 14 per cent at the smaller wireless systems division.
Laird launched 24 new products and applications, helping it land design wins in wireless charging and 'contactless' medical and automotive technology. That trend should continue: it ramped up research spending by a tenth to $82m last year, and capital spending climbed more than three-quarters as it invested in new factories in China, Vietnam and the US. It also opened a new design centre in South Korea - home to potential customers such as Samsung, LG and Kia - and acquired a majority stake in Model Solution, a rapid prototyping and design specialist in the country.
Broker Liberum expects pre-tax profit of £72.3m, giving EPS of 21.9p, up from £63.2m and 19.1p in 2014.
| LAIRD (LRD) | ||||
|---|---|---|---|---|
| ORD PRICE: | 353p | MARKET VALUE: | £944m | |
| TOUCH: | 352-353p | 12-MONTH HIGH: | 355p | LOW: 260p |
| DIVIDEND YIELD: | 3.5% | PE RATIO: | 19 | |
| NET ASSET VALUE: | 165p* | NET DEBT: | 35% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 414 | -8.6 | -6.0 | 6.3 |
| 2011 | 491 | 29.3 | -44.8 | 8.0 |
| 2012 | 520 | 45.1 | 12.7 | 10.0 |
| 2013 | 537 | 43.2 | 11.5 | 12.0 |
| 2014 | 565 | 48.1 | 18.8 | 12.5 |
| % change | +5 | +11 | +63 | +4 |
Ex-div: 4 Jun Payment: 3 Jul *Includes intangible assets of £556m, or 208p a share | ||||
