Digital boom strikes chord for Wolfson

Published on Sunday 21 December 2003 00:00

STOCK market newcomer Wolfson Microelectronics is set to cap its debut year as a listed company by benefiting from a boom in hi-tech consumer goods in the run up to Christmas.

The Edinburgh company designs and manufactures a range of chips used in digital audio and video products, including Apple’s 400 iPod music player - the ‘must have’ gadget this year.

Despite its hefty price tag, many retailers - including Amazon - have either sold out of the device or have a very limited supply.

Wolfson also supplies chips to other consumer giants including Canon, Hewlett-Packard, Microsoft and Samsung, which are all benefiting from a fall in the price of digital products and the British love affair with state-of-the-art gadgets.

A spokesman confirmed Wolfson had enjoyed an "especially marked" rise in orders in the lead-up to Christmas.

Wolfson has chips in most digital products. Analysts believe that with digital technology becoming more affordable for consumers, Wolfson will continue to enjoy buoyant sales. One said: "A DVD player with a Wolfson chip in it costs perhaps 50 now compared with 100 a year ago.

"That means Wolfson will be shipping a lot more of its products as electronics manufacturers up their sales to meet demand." Shares in Wolfson closed up 10p at a record 298p on Friday as traders took note of spending patterns on the UK high street.

Wolfson became the first technology company to float since the tech bubble burst in 2000 when it listed at 210p per share.

The company, spun out of Edinburgh University in 1985, more than doubled its sales from 9.3m to 19.4m in 2002, and sales are on course to double again this year.