LONDON (Alliance News) - Alent PLC shares were given a boost at the open on Wednesday after the company said it is trading in line with expectations despite the impact of the strong sterling on its reported results and said it has appointed a new chief executive from Rolls-Royce Holdings PLC.
The FTSE 250-listed specialty chemicals and materials company said trading in the second half to November 5 has been broadly in line with expectations. It said its net sales value at constant currency increased 5.5% in the third quarter, but said an adverse currency translation of 6.7% meant sales value on a reported basis was down 1.2% to GBP104.3 million from GBP105.6 million a year earlier.
But the group said its net sales value margin in the third quarter increased against the first half, adding pricing remained stable in the majority of its market segments, with its market share largely maintained or increasing on the back of its marketing and selling strategy.
Net sales value in Alent's Assembly Materials business increased 5% on constant currencies but was down 0.4% on a reported basis to GBP51.8 million against GBP52 million. The performance of the division was in line with expectations, Alent said, backed by a modest improvement in the electronics market on the back of new product launches.
For its Surface Chemistries arm, net sales value was up 6% on constant currencies but down 2.1% on a reported basis to GBP52.5 million from GBP53.6 million last year. The group said it made progress in its Performance Coatings arm on the back of healthier automotive and industrial markets.
Alent said its full-year expectations remain unchanged and said it is confident that further improvements in the electronics market will boost its future performance.
In addition, Alent said it has appointed Andrew Heath as its new chief executive. He will join the board of the company on February 21, 2015 and joins from his previous role as the president of Rolls-Royce Energy. Alent said Heath also is a non-executive director of Imagination Technologies Group PLC.
Alent shares were briefly among the best performers in the FTSE 250 in opening trade, before paring back to be up 0.1% to 330.3 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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