Acal says Q1 profits in line, FY outlook unchanged

Bespoke electronics supplier Acal said its first-quarter group profits were in line with its expectations and that its outlook for the year is unchanged.

Acal said it expected to benefit from sterling's decline following the non-binding UK vote to quit the European Union.

As noted 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," the company said in a trading statement.

Acal said it continued to keep a rein on costs.

It was taking further action to improve efficiency by closing three Nordic manufacturing facilities and transferring production into existing lower-cost facilities elsewhere.

"With 80% of group revenue derived outside the UK, we expect to benefit from the translation impact of Sterling's recent depreciation more than offsetting the impact of foreign exchange movements on UK imports, assuming current rates persist," Acal said.

At 13:54 BST, shares in Acal were up 3.8% to 246p.