While Laird continues to search for a new chief executive, chairman Nigel Keen described 2011 as a "very strong year". The period saw continued change, with streamlined operations now focused on two growth markets - performance materials that protect electronic devices from electromagnetic interference, and heat and wireless systems.
In building that focus, Laird announced the £18.8m acquisition of Microwave Materials Group (MMG) and of Summit Technologies for £13.8m. MMG adds a range of commercial absorber products to complement the existing absorber portfolio for the defence industry. Summit Technologies, meanwhile, brings wireless capability in harsh radio frequency environments such as as factories and hospitals. Mr Keen expects both acquisitions to be immediately earnings-enhancing.
The sale of the handset antennae business is eventually expected to be cash-positive as overheads are scaled back significantly, working capital withdrawn and fixed assets sold. Nevertheless, the sale hit the results with a £115.7m non-cash asset impairment charge and £16.3m restructuring charge - adjust for that and group pre-tax profit rose 31 per cent in 2011 to £52.7m. Organic group revenue growth of 12 per cent delivered on management's 10 per cent target, too.
Numis Securities expects underlying EPS of 17.6p for 2012.
| LAIRD (LRD) | ||||
|---|---|---|---|---|
| ORD PRICE: | 179p | MARKET VALUE: | £475m | |
| TOUCH: | 178-179p | 12-MONTH HIGH: | 208p | LOW: 121p |
| DIVIDEND YIELD: | 4.5% | PE RATIO: | na | |
| NET ASSET VALUE: | 166p* | NET DEBT: | 27% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 564 | 51.5 | 21.4 | 11.5 |
| 2008 | 635 | 26.5 | 7.0 | 10.3 |
| 2009 | 529 | 4.6 | -0.8 | 6.0 |
| 2010† | 414 | -8.6 | -6.0 | 6.3 |
| 2011 | 491 | -102 | -44.8 | 8.0 |
| % change | +19 | - | - | +27 |
Ex-div: 2 May Payment: 1 Jun *Includes intangible assets of £515m, or 194p a share †Restated for business sales | ||||
