LONDON (Alliance News) - Laird PLC is one of the biggest gainers in the FTSE 250 Thursday after it reiterated its expectations for the full year and posted a rise in pretax profit for its first half, as revenue was boosted by more favourable exchange rates and a full contribution from its acquisition of South Korean prototype design company Model Solution last year.
Shares in Laird were up 14% at 398.50 pence Thursday afternoon, the third biggest gainer in the FTSE 250.
The technology company proposed an interim dividend of 4.40 pence, up from 4.27p a year before.
Laird posted a pretax profit of GBP21.6 million for the half year to end-June, up from GBP16.0 million a year before, as revenue rose 21% to GBP305.9 million from GBP252.6 million, helped by a more favourable exchange rate for the US dollar relative to sterling.
In dollar terms, revenue rose 11% to USD466.5 million from USD421.3 million.
In Laird's Performance Materials segment, revenue rose to GBP193.3 million from GBP157.3 million. Revenue for shielding products in smartphones rose 39%, whilst shielding services for automotives continued to grow. The overall performance for its thermal product range was marginally lower, hampered by lower revenue from telecoms mobile infrastructure in the second quarter.
In Wireless Systems, revenue growth to GBP112.6 million from GBP95.3 million was boosted by a strong performance from Laird's telematics and machine-to-machine business, and by a good performance from its Bluetooth, Bluetooth Low Energy and Wi-Fi connectivity control products.
The company said it developed new products for the wearables and notebook segments during the half year, which both "show early promise". It is continuing to diversify its target markets, winning new customers in the medical and food and beverage sectors.
Laird is opening a new telematics facility in Brazil, which is on track for the second half of 2015. It expects to begin product for several customers before the end of the year.
"Our business performed well in the first half of the year. We continue to drive our strategy of diversifying revenue between sectors and, within those sectors, across market-leading customers. As such, we are increasingly well positioned to benefit from the growth in the 'Enterprise Internet of Things'," said Chief Executive David Lockwood in a statement.
"The investment we have made in our people, technology, systems and facilities is delivering operational improvements. This has helped us win new business and contributed to a strong first half. As a result of this progress, our expectations for the full year remain unchanged," Lockwood added.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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