Laird off to solid start, but second half remains key

Electronic component maker Laird reported strong sales growth in the first quarter of 2017 after a difficult year.

Revenue of £197m was up 15% on the same time last year, which represents 8% organic growth at constant currencies.

Full year expectations are based on 4% underlying revenue growth with some small margin improvement.

Performance Materials revenue for the quarter was up 10% to £92m, or 4% at CC; Connected Vehicle Solutions revenue grew 35% to £70m, or 24% at CC; while Wireless and Thermal Systems revenue was flat at £35m, down 6% at CC.

Chief executive Tony Quinlan said he was encouraged by overall trading performance in the quarter.

Following the recent £185m right issue, showed "strong shareholder support", with the proceeds providing "the balance sheet strength needed to continue our work in building a more robust and stable revenue and earnings performance".

"While it is still early in the year, our performance in the first quarter gives us confidence that the measures taken to improve our performance in 2017 are on track."

House broker Numis said, given the H2 bias in the key PM division, it was leaving its estimates unchanged at this point.