Business
Trading Update & Acquisition
Trading Update & Acquisition.
About this update from Discoverie Group Plc
[{"type":"text","content":"\n \nRNS Number : 8550O Acal PLC 12 February 2016 \n\nFor Release\n7.00am, 12 February 2016 \n \nAcal plc\nTrading Update and North American Acquisition\n \nAcal plc (LSE: ACL, \"Acal\" or \"the Group\"), a leading international supplier of customised electronics to industry, today issues a trading update for the year ending 31 March 2016, covering the 4 months period from 1 October 2015 to 31 January 2016, and announces the acquisition of Plitron Manufacturing Inc (\"Plitron\").\n \nTrading update\n \nDuring the 4 months ended 31 January 2016, the Group performed in line with our expectations. \n \nIn the Design & Manufacturing division, sales increased by 26% CER. Like-for-like2 growth continued at levels similar to the first half of the current financial year.\n \nIn the Custom Distribution division, ongoing sales3 were flat, with Continental Europe growing at levels similar to organic rates in the D&M division while the UK remained in decline. As indicated at the time of our first half results announcement, overall sales growth in Custom Distribution was impacted by the strong prior year comparator arising primarily from a few large one-off customer orders.\n \nGross margin remains firm and ahead of last year.\n \nFlux A/S, which was acquired on 5 November 2015 for an initial consideration of £3.7m, and Contour Electronics, which was acquired on 8 January 2016 for an initial consideration of £17.0m, are performing as expected. \nWhilst mindful of the current uncertain economic and market conditions, we maintain our earnings forecast for the full year.\nAcquisition of Plitron Manufacturing Inc\n \nPlitron, based in Toronto, Canada, is a designer and manufacturer of custom toroidal transformers for transportation, medical and industrial applications. \n \nWith a well established track record of supplying high quality, custom-engineered magnetic products in North America, the business will further develop the Group's international capabilities and is expected to generate new cross-selling opportunities. Plitron will operate within Acal's Design & Manufacturing division (\"D&M\") whilst retaining its distinct brand identity. \n \nPlitron has been acquired for a consideration of C$4.0m (£2.0m) on a debt free, cash free basis. It reported sale...