Laird said to consider sale of precision metals division

Laird is said to be considering the sale of one of its major divisions as it struggles to turn its business around.

According to The Telegraph, the FTSE 250 electronics component maker, whose shares have fallen sharply since its profit warning in October and rights issue in December, is looking to sell its precision metals division.

The unit makes high-specification parts for electronic equipment such as smartphones and has annual revenues of about $250m, which makes up about a quarter of Laird’s total.

The Telegraph cited sources as saying that a sale of the unit was an option but not a certainty. Sources also said Laird has received informal approaches about selling the precision metals business but these have only been at a very early stage.

Precision metals was a big contributor to the company's profit warning last year, with operational and commercial issues meaning profit was £20m below consensus forecasts at £50m.

At 0808 GMT, the shares were down 0.6% to 166.50p.