Dowlais shares surge following trading update

Specialist engineering group Dowlais said on Wednesday that year-to-date trading was in line with expectations and that its full-year outlook remained unchanged.

Dowlais said it had continued to "execute well" on its strategic priorities, with a continued focus on delivering operational efficiencies and commercial recoveries.

The FTSE 250-listed group delivered £4.2bn of adjusted revenue in the period, reflecting a 6.1% year-on-year decline, principally driven by continued weakness in its ePowertrain product line.

Translational foreign exchange headwinds were £173.0m, resulting in a year-on-year reported adjusted revenue decline of 10%, while adjusted operating margins for the period came to 6.1%, down 30 basis points year-on-year.

As of 0930 GMT, Dowlais shares were up 13.56% at 54.60p.

Reporting by Iain Gilbert at Sharecast.com