Laird - Rocketing along nicely

It's worth remembering that it is not all doom and gloom out there, a number of companies are actually doing quite well.  I like to look out for reports which despite all the general bad news about show a company in a positive light.  It suggests they are doing something right.  So, this morning Laird was spotted on my radar in part due to the positive spin of the news report around its half yearly report.

Cash is pouring in at technology group Laird as revenues pick up, as the company saw strong demand in the second quarter from the information technology and automotive markets.

The company makes components that protect devices from electromagnetic interference and heat. It also has a wireless and antennae systems business, but got shot of its handset antennae business last month. 

http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=20255398

Quite a few highlights in the half yearly report.

• Revenue of £249.6 million (2011: £243.1 million)
• Pick-up in revenue in the second quarter, over the first quarter
• Underlying profit before tax up by 7% to £27.3 million
• Underlying operating margin of 12.4% (2011: 11.7%)
• Earnings per share of 8.6p, up 9% on prior year 
• Interim dividend declared of 3.4 pence (2011: 2.7 pence), up 26% on 2011
• Strong cash conversion
• Expansion of capacity proceeding to plan 
• New product launches on track for the second half of the year
• Integration of recent acquisitions, Emerson & Cuming and Summit, progressing according to plan

http://www.digitallook.com/news/rns/20254250-10225/LRD-Half_Yearly_Report_html

The market has reacted accordingly, the share price is up 12% as of writing and the biggest mover in the FTSE350.  On a P/E of 11.2 and Div Yield of 4.3%, set to rise to 5.2% next year, the shares don't look a stretch.

However, despite the good looking result the Investors Chronicle offers a hint of scepticism, recognising the potential but seeing the second half as key.

Laird must maintain momentum

Certainly one to keep an eye on.