Andor posts 22 percent rise in profits

20-05-2008

by Bryan Collins

Belfast-based Andor Technology posted an impressive interim result for the six-month period ending 31 March 2008, with a 22.2 increase in pre-tax profit to STG0.8 million.

The company, which manufactures ultra-high-end digital cameras for the industrial sector, saw turnover for that period rise 10 percent year-on-year to a record STG11.5 million, while EBITDA increased 11.5 percent to STG1.2 million. Its operating profit was up 14.8 percent to STG0.81 million while Andor's earnings per share increased by 9 percent to STG0.0257.

"We are encouraged by these results, but more importantly, the building blocks for sustainable and profitable growth have been put in place. The company's road map will deliver products that create further competitive advantage through technology innovation and superior cost advantage. We recognise that this will take time but remain confident about the long term prospects for the business," said Conor Walsh, chief executive of Andor Technology, in a statement.

During the six-month period the company capitalised on investments made in the Asia Pacific region with a 34 percent growth in regional sales. It also reported a 23 percent divisional sales growth in the US. The period also saw Andor Technology successfully launch the Shamrock 500 and 750 spectograph products, and its products were added to Nikon's distribution range.

Andor Technology's research spending increased during the six-month period covered by its latest results; it reported a 3 percent increase from 8 percent in the year-ago period to 11 percent of overall revenue. The company said this growth was due to the planned increase in engineering capabilities and acceleration of projects to enhance organic growth.

The company warned that US research budgets are under pressure and has re-directed its efforts in that region into bolstering OEM sales. The company is also planning to produce some new units in its fourth quarter -- the prototypes of which are currently with its key US customers.

Andor Technology, nearly a 20-year-old company, is listed on the London Stock Exchange's AIM market and commenced dealings in its ordinary shares in December 2004. It has offices in Europe, the US, Japan and China.