Laird Regulatory News (LRD)

22 October 2014

Laird PLC

Interim Management Statement

Laird PLC today announces its Interim Management Statement for the third quarter, from 1 July to 21 October 2014. Unless otherwise stated, trends and figures highlighted below refer to the three months ended 30 September 2014, the third quarter of the company's financial year, and the corresponding period for last year.

Financial Performance

Trading was in line with management expectations, with almost all businesses experiencing growth across their markets. Third quarter revenue in US dollars increased 15% overall, and 11% on an organic1 basis, over the comparable period in 2013.

Revenue for the third quarter totalled US$251 million (2013: US$218 million). In sterling, revenue totalled £150 million (2013: £141 million), a growth rate of 6%, after accounting for currency translation.

For the nine months to 30 September, revenue on an organic1 basis in USD grew 11%. In sterling, total revenue increased by 5% to £402 million (2013: £384 million).

Operational Highlights

Performance Materials Division

Revenue on an organic1 basis in the third quarter grew 10% to US$169 million (2013: US$144 million. In sterling, total revenue increased by 8% to £101 million (2013: £384 million).

The Performance Materials business performed well across most segments, driven by customer new product launches, strength in smart phones sales and the continued investment in 4G/LTE infrastructure. Revenue for the Signal Integrity business was lower in the third quarter, largely due to new product launches in the prior year, particularly gaming consoles, which had contributed to strong revenue growth in the comparable period in 2013. Model Solution2 continued to perform well, in line with management expectations.

Our R&D investment over the past two years continues to underpin customer demand for our products. As a result, and as previously announced, our new plant in Vietnam successfully came on stream, increasing our Asian production capacity.

Wireless Systems Division

Revenue on an organic1 basis grew 12% in the third quarter to US$82 million (2013: US$74 million). In sterling, total revenue increased by 3% to £49 million (2013: £48 million).

Our Telematics/M2M business continued to experience robust demand from automotive companies, particularly in North America. Infrastructure antennae systems (IAS) performed strongly due to the continued investment in 4G/LTE infrastructure. Industrial and medical products performed well, although rail and public safety were slightly weaker due to contract timing differences.

Our recently expanded telematics plant in Shanghai opened in mid-October, two weeks ahead of schedule, and will provide valuable production capacity and local design expertise to our global automotive customers.

We are also investing in a new telematics plant in Brazil to serve the needs of OEMs in the important Latin American region. The factory is in the design phase and is progressing on schedule with expected completion in Q1 2015.

Financial Position

Our balance sheet remains strong with good cash flow underpinning continued investment in new product development and additional production capacity. The new $125m US Private Placement was drawn down on 25 September, bringing to a successful conclusion our 2014 refinancing programme with £325m ($550m) of committed loan facilities and notes with terms ranging from five to seven years.

Outlook

David Lockwood, Chief Executive, said: "As expected, Laird performed strongly this quarter, and we have benefited from our strategy of investing in innovation, reliable fulfilment and speed. We will continue to invest in both R&D and capacity to deliver sustainable long term growth. Our expectations for the full year remain unchanged."