Laird (247p and 3.8% of JIC portfolio); The Company announced a solid set of Results for the year ended 31st December 2012. Pre-tax profits were marginally ahead of consensus up 17% at 60.7m, and earnings per share came in up 18% at 19.1p (consensus 18.8p). Results were driven by an improvement in operating margins from 11.9% in 2011 to 13.1%. Cash generation was strong. The full year dividend was increased to 10p, up 25% on 2011's 8p and in line with the Company's stated aim of delivering dividend payments at a compound annual growth rate averaging 24% from 2010 to 2013.
David Lockwood, Chief executive is confident about the Company's prospects although warns that it will be second half weighted as a result of the timing of its customers' product launches. The first quarter will see revenues flattish year-on-year as the Company continues to see the impact of its withdrawal from lower margin business. He is confident that the Company will make good progress in 2013.
Conclusion: On consensus forecasts the shares are valued at 11.4x 2013 earnings for 13% earnings growth and yield 4% rising to 4.8% in 2013. Shares look good value to me. Happy Holder!
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