Acal’s (ACL) drive to strengthen its higher margin design and manufacturing operations shows little sign of slowing down. The latest acquisition Contour, a UK-based maker of cabling assemblies and connectors for industrial and medical clients, will more than double the electronic component specialist’s revenues in this niche technology area, with return on sales in the region of 16.8 per cent.
Management, which expects the deal to be immediately earnings enhancing, will fund the £17m acquisition from debt facilities and the issuance of shares worth £3m. In response, brokerage firm finnCap plans to upgrade its EPS figures for the 2017 financial year by 4 per cent to 19.3 per cent.
We recently visited Acal's Guildford office to hear from management about its strategy for the business.
