Last checked at 26 Jul 2016 07:00
For Release
7.00am, 26 July 2016
Acal plc
First Quarter Trading Update
Acal plc (LSE: ACL, "Acal" or the "Group"), a leading international supplier of customised electronics to industry, today issues a trading update for the first quarter of the financial year ending 31 March 2017, covering the period from 1 April 2016 to 30 June 2016.
First quarter Group profits were in line with our expectations and our outlook for the year is unchanged.
As noted at the time of the results in June, sales were slower, with gross margins higher than last financial year. Since the end of the quarter, orders to date in July have been ahead of last year with a positive book to bill ratio.
We continue to keep a tight control on costs and are taking further actions to improve efficiency across the Group by closing three Nordic manufacturing facilities and transferring production into existing lower cost facilities elsewhere in the Group, and by reducing operating costs.
With 80% of Group revenue derived outside the UK, we expect to benefit from the translation impact of Sterling's recent depreciation1 more than offsetting the impact of foreign exchange movements on UK imports, assuming current rates persist.
We design, manufacture and supply essential technologies to growth markets which have excellent potential. Whilst it is too early to know the impact of the Brexit vote, with our differentiated market position, we expect to make further progress during the year.
For further information, please contact:
Acal plc 01483 544 500
Nick Jefferies - Group Chief Executive
Simon Gibbins - Group Finance Director
Instinctif Partners 0207 457 2020
Helen Tarbet
James Gray
Notes
1. Sterling weakened 7% against the Euro for the 3 months ended 30 June 2016 (Q1 17 average £/€ rate: 1.274) compared with the average rate for last year (FY16 average £/€ rate: 1.367) and weakened 6% against Nordic currencies on average. Using month end rates for June 2016 (£/€ rate:1.210), Sterling had weakened 11% compared with the average rate for last year and 10% against Nordic currencies on average.
2. The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.
Notes to Editors:
About Acal plc
Acal is a leading international supplier of customised electronics to industry. It designs, manufactures and distributes customer-specific electronic products and solutions to 25,000 industrial manufacturers and is listed on the London Stock Exchange (LSE: ACL).
Acal has two divisions: Design & Manufacturing and Custom Distribution. The majority of its sales comes from products and solutions which are created specifically for a customer. Acal works across a range of technologies, namely Communications & Sensors, Power & Magnetics, Electromechanical & Shielding, Embedded Systems, and Photonics & Imaging.
Acal operates through the following wholly-owned businesses: Acal BFi, Contour, Flux, Foss, Hectronic, MTC, Myrra, Noratel, Plitron, RSG, Stortech and Vertec. It has operating companies and manufacturing facilities in a number of markets, including the UK, Germany, France, the Nordic region, Benelux, Italy, Poland, Slovakia and Spain, as well as in Asia (China, India, South Korea, Sri Lanka and Thailand), North America (the US and Canada), and South Africa.