Laird Q3 revenue rises, sees FY profit at top end of market forecasts

Laird reported a rise in revenue for the third quarter and said it expects full-year profit to be towards the top end of current market forecasts.

In a trading update for 1 July to 30 September, the company said revenue grew 19% to £245m, or 16% on an organic constant currency basis. Meanwhile, year-to-date revenue was up 23% to £686m, or 12% on an organic constant currency basis.

Laird said it saw some benefit from the timing of public holidays in Asia and Europe, which will result in more modest growth in the fourth quarter. However, underlying pre-tax profit for the year is now expected to be towards the top end of the current market forecasts of between £60m and £65.2m.

Chief executive Tony Quinlan said: "I am pleased with the continued improvement in underlying performance across the group in the third quarter, which demonstrates the strengthening foundations within the business.

"In what remain competitive but attractive markets, we continue our relentless focus on driving operational excellence. This has started delivering results and will remain an ongoing priority throughout Laird."

Numis lifted its price target on Laird to 180p from 165p following the update. "We now expect 10% underlying revenue growth in FY17E (previously 7%) and upgrade our profit before tax forecast to £64m, resulting in a 8% upgrade to earnings per share to 9.7p from 9.0p (consensus 9.8p)."

At 0935 BST, the shares were up 2.1% to 155.50p.