Andor (AIM:AND) – great business but don’t disappoint in the current market
Despite trading ahead for the first half Andor’s warning that second half trading would not prove as promising sent the shares down over 30%.With growth prospects, in the short term at least, reigned back, the shares might struggle in the current demanding environment - although tha applies to virtually everything!
Two major OEM customers in the Americas did not achieve forecast sales which resulted in a £3.0m shortfall in orders for Andor in the period. In the absence of a significant improvement in economic conditions, it looks unlikely that this deficit will be absorbed in the short term and as a result they now expect the second half performance will be less than originally projected. The business as a whole looks in decent shape with 1st half revenues up 10% to £31.2m, operating margins up from 15.7% to 17.3%, adjusted PBT up 22% to £5.5m. Net cash was up 17%…