Laird posts increase in third quarter revenue as it announce restructuring plans

Technology group Laird unveiled plans to restructure its operating model, while its sterling-denominated revenue rose in the third quarter.

In the three months to 30 September, the FTSE 250 group said revenue in sterling grew 7% year-on-year to £160m, while revenue in dollars declined 1% to $248m, although on an organic basis in constant currency, dollar-denominated revenue rose 1% year-on-year.

In the three quarters to the end of September, revenue rose 16% to £466m and revenue in dollar climbed 8% year-on-year at constant currency rate.

Revenue in the group’s performance materials division was flat at £101m, while dollar-denominated revenue for the segment declined 7% year-on-year to $157m and fell 5% on a constant currency basis.

The group attributed the decline in revenue to ongoing weakness in the telecoms market in the third quarter and the timing of smartphone launches.

The wireless systems division fared better, with third quarter revenue growing 21% year-on-year to £59m, while dollar-denominated revenue grew 14% on a constant currency basis.

Meanwhile, Laird outlined plans to redesign its operating model, as it aims to simplify its manufacturing capabilities in North America and Europe over the next 18 months.

“We will align and consolidate our regional design, engineering, sales and distribution activities closer to our customers to drive innovation and further improve time to market,” the company said, adding it does not expect the change to translate into a significant staff reduction.

In a separate statement, the London-listed confirmed it had appointed Nathalie Rachou as non-executive director from 1 January next year.

Rachou, who holds the same position at Société Générale, will become a member of the audit committee.

"Nathalie's appointment further strengthens the diversity of thought and business experience on the board,” said group chairman Martin Read.

Laird shares were down 1.11% to 346.10p at 0906 GMT on Thursday.