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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.