Proactiveinvestors RSS feed en Mon, 22 Jan 2018 11:30:30 +1100 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[RNS press release - Change of Name ]]> Wed, 29 Nov 2017 19:01:01 +1100 <![CDATA[RNS press release - Holding(s) in Company ]]> Tue, 28 Nov 2017 20:06:29 +1100 <![CDATA[RNS press release - Change of Name ]]> Tue, 28 Nov 2017 18:01:01 +1100 <![CDATA[RNS press release - Half-year Report ]]> Tue, 28 Nov 2017 18:00:03 +1100 <![CDATA[RNS press release - Trading Update ]]> Mon, 16 Oct 2017 17:00:04 +1100 <![CDATA[RNS press release - Holding(s) in Company ]]> Thu, 12 Oct 2017 03:25:25 +1100 <![CDATA[RNS press release - Holding(s) in Company ]]> Wed, 20 Sep 2017 02:04:55 +1000 <![CDATA[RNS press release - Sector Reclassification ]]> Thu, 14 Sep 2017 16:00:02 +1000 <![CDATA[RNS press release - Notification of Change of Auditor ]]> Wed, 13 Sep 2017 19:36:12 +1000 <![CDATA[RNS press release - Holding(s) in Company ]]> Thu, 17 Aug 2017 23:33:54 +1000 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Tue, 15 Aug 2017 20:32:13 +1000 <![CDATA[RNS press release - EXERCISE OF SHARE OPTION ]]> Fri, 04 Aug 2017 19:00:01 +1000 <![CDATA[RNS press release - Holding(s) in Company ]]> Fri, 04 Aug 2017 01:30:00 +1000 <![CDATA[RNS press release - Result of AGM ]]> Wed, 26 Jul 2017 00:47:16 +1000 <![CDATA[RNS press release - Trading Update ]]> Tue, 25 Jul 2017 16:00:02 +1000 <![CDATA[RNS press release - Annual Report and Accounts ]]> Mon, 26 Jun 2017 19:38:13 +1000 <![CDATA[RNS press release - Holding(s) in Company ]]> Thu, 22 Jun 2017 01:57:45 +1000 <![CDATA[RNS press release - Holding(s) in Company ]]> Tue, 13 Jun 2017 19:15:29 +1000 <![CDATA[RNS press release - Final Results ]]> Tue, 06 Jun 2017 16:00:03 +1000 <![CDATA[RNS press release - Trading Update ]]> Wed, 19 Apr 2017 16:00:08 +1000 <![CDATA[RNS press release - Holding(s) in Company ]]> Wed, 14 Dec 2016 23:03:01 +1100 <![CDATA[RNS press release - Holding(s) in Company ]]> Mon, 05 Dec 2016 20:36:53 +1100 <![CDATA[RNS press release - Appointment of Chairman Designate ]]> Tue, 29 Nov 2016 18:01:06 +1100 <![CDATA[RNS press release - Half-year Report ]]> Tue, 29 Nov 2016 18:00:09 +1100 <![CDATA[RNS press release - Holding(s) in Company ]]> Tue, 18 Oct 2016 21:52:33 +1100 <![CDATA[RNS press release - Holding(s) in Company ]]> Mon, 17 Oct 2016 21:39:42 +1100 <![CDATA[RNS press release - Trading Update ]]> Thu, 13 Oct 2016 17:00:07 +1100 <![CDATA[RNS press release - Holding(s) in Company ]]> Fri, 12 Aug 2016 22:54:19 +1000 <![CDATA[RNS press release - Holding(s) in Company ]]> Wed, 10 Aug 2016 23:08:28 +1000 <![CDATA[RNS press release - Result of AGM ]]> Tue, 26 Jul 2016 21:13:36 +1000 <![CDATA[RNS press release - Trading Statement ]]> Tue, 26 Jul 2016 16:00:07 +1000 <![CDATA[News - Acal expects to make further progress this year ]]> The recent slump in the value of sterling is likely to prove beneficial to Acal Plc (LON:ACL), the leading supplier of customised industrial electronics.

With around four-fifths of the group’s revenue generated outside of the UK, the group said it expected the translation impact of sterling’s recent depreciation, if it is sustained, would more than offset any increased imports costs.

In a trading update covering the first quarter of the company’s financial year, Acal said profits were in line with expectations during the period and the group’s outlook for the year remains unchanged.

Sales in the April-June period were slower than in the previous year, although margins were higher, but this will not have surprised the market as Acal had flagged this up at the beginning of June when it released its full-year results.

Since the end of June, orders have moved ahead of the corresponding month of last year with a positive book-to-bill ratio.

Management has decided to close three Nordic manufacturing facilities and transfer production to lower cost facilities within the group, thereby reducing operating costs.

Turning to the subject of the impact of Britain’s vote to exit the European Union, Acal said that while it is too early to determine the full impact of “Brexit”, it expects to make further progress during the year.

Watch: Acal keeps growing despite BREXIT-based caution, says chief In-depth: ACAL says headwinds will recede after strong financial performance ]]>
Tue, 26 Jul 2016 07:22:00 +1000
<![CDATA[RNS press release - Holding(s) in Company ]]> Wed, 20 Jul 2016 18:44:16 +1000 <![CDATA[RNS press release - Notice of Trading Update ]]> Thu, 07 Jul 2016 16:00:07 +1000 <![CDATA[RNS press release - EXERCISE OF SHARE OPTION ]]> Fri, 17 Jun 2016 18:00:02 +1000 <![CDATA[RNS press release - Annual Report and Accounts ]]> Fri, 17 Jun 2016 16:00:08 +1000 <![CDATA[RNS press release - Final Results ]]> Wed, 01 Jun 2016 16:00:07 +1000 <![CDATA[News - ACAL says headwinds will recede after strong financial performance ]]> ACAL PLC (LON:ACL) said it expects the “challenging” trading conditions to abate in the second half of the financial year as it gave an optimistic assessment of the prospects.

The supplier of customised electronics also revealed it has around £20mln of funding available for further acquisitions after spending £22mln on three deals in the 12 months to March 31.

The update came alongside full-year results, which revealed the group to be performing well despite the headwinds caused by currency movements.

Revenues for the period ended March were up 6% at £287.7mln, or 14% at constant exchange rates, while underlying operating profit advanced 36% to £13.6mln once adjusted for the weakness of the euro and Nordic currencies.

IN DEPTH: ACAL in a good place, says CEO

ACAL is now generating more than 50% from its value-added design and manufacturing division, which is reflected in the operating margin of 5.7%, which has almost doubled in the last two years.

It is sitting on a record order book of £85mln, while net debt is a tad over £38mln. The latter figure shouldn’t be a worry as the company is converting all its operating profits into cash.

Investors are being rewarded with a dividend of 8.05p, up 6% on a year ago and representing a yield of just over 3% at the current share price.

Chief executive Nick Jefferies said ACAL had delivered a “strong set of results”, adding: “We are building a highly differentiated, international electronics business, supplying essential technologies to growth markets, and are confident of making further progress in the year ahead."

A large and growing customer base 

ACAL designs, manufactures and distributes electronic products to around 20,000 industrial manufacturers around the world.

This includes supplying temperature sensors for coffee machines, customised transformers for healthcare CT scanners and cable assemblies for stair lifts.

Its key markets are in Europe, with increasing presence in the US and Asia.

What the boss says:

On the business...

“The business is performing, it’s very solid, it has relatively stable revenue patterns and we just need to keep on doing what we do, keep pushing it, keep developing it, keep buying good complimentary businesses where we can get sales and operating synergies, and it will keep driving shareholder value”

On growth...

“Growth organically has been reasonable in difficult markets but we’ve managed to maintain operating margins and that has really boosted profitability”

Room for growth 

At 1pm the shares were steady at 261.28p, valuing the business at £167mln.

Reiterating its ‘buy’ recommendation, the City broker finnCap said the shares are worth 339p each.

“We believe double-digit earnings growth can be sustained into the medium term,” said analyst Guy Hewitt.

He sees revenues growing to £297mln this year and then to £326mln and £341mln, giving adjusted operating profits respectively of £19.5mln, £23.5mln and £25.5mln.


Wed, 01 Jun 2016 07:34:00 +1000
<![CDATA[RNS press release - Holding(s) in Company ]]> Tue, 19 Apr 2016 02:35:09 +1000 <![CDATA[RNS press release - Trading Update ]]> Fri, 15 Apr 2016 16:00:06 +1000 <![CDATA[News - Acal earnings set to beat forecasts ]]> Acal Plc (LON:ACL), the specialist electronics group, said its earnings for the year will be “slightly” ahead of expectations.

Trading since it last updated the market in February has been better than forecast.

As a result group sales are set to have increased by 6%, or 14% at constant exchange rates.

The Design & Manufacturing division, which accounted for 48% of revenue and more than three-quarters of profit, saw sales revenues grow by 3% on a like-for-like basis.

Adding in new acquisitions and adjusting for currency movements they were up 50%.

As expected, sales from the Custom Distribution division were down 7%.

Acal said its three recent purchases, Flux last November, Contour in January and Plitron in February, are all performing “well and as expected”.

finnCap analyst Guy Hewitt says Acal’s margins set it apart from competition

“This is all about specialism,” Hewitt said in an interview with Proactive Investors.

“It [Acal] is strong in niches and therefore competition is lower and they’re much more in tune with what the customers need and that means higher value add. 

“They are very much focussed on customised products meaning you can’t necessarily easily buy what they produce elsewhere if at all in fact. 

“So they get involved with the client early on from the design stage ideally all the way through to manufacturing and distribution and that increases level of value add

“So if a customer is looking for a particular set of skills or product then hopefully the strategy is that Acal will be at the top of the list if not a list of one.”

Fri, 15 Apr 2016 07:19:00 +1000
<![CDATA[RNS press release - Holding(s) in Company ]]> Wed, 23 Mar 2016 22:32:51 +1100 <![CDATA[RNS press release - Trading Update & Acquisition ]]> Fri, 12 Feb 2016 18:00:05 +1100 <![CDATA[News - Acal on track to hit earnings target ]]> -- adds broker comment --

Customised electronics supplier Acal (LON:ACL) will hit its earnings forecast this year.

“Whilst mindful of the current uncertain economic and market conditions, we maintain our earnings forecast for the full year,” it said in a trading update.

Acal also announced the acquisition of Canada-based Plitron for £2mln.

Plitron supplies the magnetic cores used in toroidal transformers and generated sales of C$8.2mln (£4mln) in the year to May.

It will slot into the design & manufacturing division, where sales rose by 26% in the four months to 31 January at constant exchange rates.

Like-for-like growth was 4% and in line with the first half of the year.

The custom distribution division saw flat sales as growth in Europe offset by a weak UK performance.

Acal added the comparative period was boosted by a number of large one-off orders and that gross margins had improved.

Recent acquisitions Flux and Contour Electronics are performing as expected.  

Broker finncap said Acal is doing well well against a difficult market backdrop. Plitron will further develop the group’s international capabilities and represents an acceleration from a small base in North America, where longer-term growth potential is very significant.

Acal is making good progress with its strategy of building a differentiated group with rising operating margins.

Shares rose 1% to 252p.

Fri, 12 Feb 2016 07:47:00 +1100
<![CDATA[News - Acal in good place, says chief executive ]]> Acal's (LON:ACL) acquisition last month of cable and connector specialist Contour, immediately earnings enhancing, underlined its progress in building a leading  provider of electronics to industry.

The £17mln purchase means Acal has now made more than 10 acquisitions since it listed in 2009 and, at the end of last year, the group said it had £35mln in the tank for future deals.

Acal designs and makes specific electric parts for thousands of industrial manufacturers. One example -  temparature sensors in coffee machines.

It supplies its technology into industrial and medical applications, aerospace, transport and also now the Internet of Things (IoT).

Demand in such spaces is a "long term trend", which will continue, reckons chief executive Nick Jefferies.

"It's a very good, stable, long term market place to be in," he told Proactive.

Broker FinnCap agreed.

It says the Contour acquisition will lead to higher group operating margins and more  than double Acal’s capability in this technology area, namely cabling and connectors.

Analyst Guy Hewett notes that Contour reported sales of £10.7mln and underlying profits of 1.8mln in the year to June 2015.

Operating margins were 16.8%, compared to Acal’s group operating margin of 5.4% in the first half of  the 2016 year, he said.

Chief executive Jefferies told Proactive that he felt Contour, which the company has known for some time, made a "good fit" with Acal and particularly, gave it more access to medical markets.

The firm  has agreed a business plan with the Contour directors  for the next three years, involving certain targets and he expects Contour pre-tax profit to continue to grow

FinnCap notes: "Acal is paying an initial £14m cash and £3m in shares. There is also £1m deferred consideration and £6m contingent consideration (due after April 2019). The significant contingent consideration suggests to us that there is strong growth potential ahead of our forecasts."

On Acal as a whole, the broker is bullish.  It expects adjusted pre-tax profit of £14.4mln in 2016 rising to $17.6mln in 2017 on sales of £297.2 mln rising to £226.2mln in 2017.

It forecasts 13% average EPS (earnings per share) growth per year over the next three forecast years, meaning it continues to believe the valuation metrics are attractive.

The broker rates the shares a 'buy' targeting 339p - a good distance from the current price of 260p.

Analyst Hewett highlights the Contour purchase shows Acal's strategy of building a differentiated business with higher operating margins.

"This is being achieved both organically and by acquisition and, supported by the proliferation of technology and clients’ increasing need for Acal’s technology-based services, we believe that Acal is set to generate significant value."

Acal makes and distributes customised electronic products to around 25,000 industrial customers and in November last year, releasing first half numbers,  said it remained on track to hit full-year expectations.

It reported revenue for the six months to September 30 of around £142.2mln, with  underlying earnings (EBITDA) of £7.7mln and upped its dividend 6% to 2.33p, meaning since 2010 it has hiked its pay-outs by some 49%.

"As a result of the strategy we have been pursuing since 2009, Acal continues to move up the value chain," the firm said.

“We have now acquired 10 companies since 2009 and are very pleased with all of the acquisitions that we have made.

“We have a pipeline of about half a dozen acquisitions that we are looking at and we hope within the next two years there will be a fairly substantial one as well."

The company made two purchases in 2015, Norway-based Foss, and Danish firm Flux AS.

It added that it had “several value-enhancing acquisition opportunities in the pipeline” and the resources to fund them.

Fri, 05 Feb 2016 10:27:00 +1100
<![CDATA[RNS press release - Director Declaration ]]> Wed, 03 Feb 2016 20:37:57 +1100 <![CDATA[RNS press release - EXERCISE OF SHARE OPTIONS ]]> Mon, 18 Jan 2016 18:00:07 +1100 <![CDATA[RNS press release - Additional Listing ]]> Mon, 11 Jan 2016 18:00:06 +1100 <![CDATA[RNS press release - Acquisition ]]> Fri, 08 Jan 2016 18:00:06 +1100 <![CDATA[News - Acal buys cable specialist Contour for £17mln ]]> --- ADDS BROKER COMMENT AND SHARE PRICE ---

Electronic components supplier Acal (LON:ACL) announced it has bought Contour, a custom cable and connector specialist, for £17mln.

Contour, made up of Contour Holdings and its affiliate Contour Electronics Asia, will more than double the group's revenues in the cable sector, the firm said.

FinnCap said the acquisition is “further evidence of progress in Acal’s strategy of building a differentiated business with higher operating margins.

Acal will pay £14mln in cash, funded from the group's debt facilities, and issue shares for the remaining £3mln.

Contour has grown strongly over recent years, Acal revealed, and the acquisition will be immediately earnings enhancing.

Contour's revenues for the year ended 30 June 2015 were £10.7mln with an underlying pre-tax profit of £1.8mln.

Nick Jefferies, chief executive of Acal, said: “The acquisition of Contour continues our strategy of building a differentiated group with higher operating margins by buying high quality, growing design and manufacturing businesses.”

The firm has now made more than 10 acquisitions since it listed in 2009, and, speaking in November, Jefferies said the firm had £35mln put aside for more deals, with a pipeline of around a dozen opportunities.

Broker finnCap said progress is “being achieved both organically and by acquisition and, supported by the proliferation of technology and clients’ increasing need for Acal’s technology-based services, we believe that Acal is set to generate significant value.”

Shares in Acal climbed 8p to 283p on Friday.

Fri, 08 Jan 2016 07:36:00 +1100