Final Results

Elektron PLC
09 June 2004



For immediate release

                                        ELEKTRON PLC

            Preliminary results for the year ended 31st January 2004

Elektron PLC ('Elektron'), the AIM quoted electromechanical components
manufacturer announces its preliminary results for the year ended 31st January
2004.

Key Points:

Operating profits on continuing operations and acquisitions before exceptional
items and goodwill release of £796,000 (2003: operating loss: £2,000)

Profit before taxation of £1,605,000 (2003: loss before taxation £3,366,000)

Earnings per share before goodwill 0.63p (2003: loss 5.45p). Earnings per share
after goodwill 2.42p (2003: loss 6.18p)

Net gearing on tangible net assets 36% (2003: 284%)

Negative balance on profit and loss account substantially reduced. Dividend
under consideration in current year

Group refocused following acquisition of Arcolectric and disposal of Milmega

Current year has started well

For further information please contact:

Adrian Girling                     Roland Cornish
Executive Chairman                 Chairman
Elektron PLC                       Beaumont Cornish Limited
Tel: [phone]                 Tel: [phone]


Chairman's Statement

I am pleased to be able to report an improvement in the Group's fortunes. During
the year the Group was refocused on its core business of manufacturing
electromechanical components with the acquisition in December 2003 of
Arcolectric and the sale of Milmega at the end of the financial year.

The figures reported show just over one month of trading at Arcolectric together
with negative goodwill releases following the assessment of fair value of assets
acquired compared with purchase consideration.

From a difficult financial position eighteen months ago the Group has undergone
a remarkable transformation. This could not have been achieved without the
support of an excellent team of managers both at Bulgin and Arcolectric. In
addition we were fortunate to have the support of a number of Shareholders
(including certain Arcolectric staff members) who believed in our vision and
provided finance at short notice when the opportunity to acquire Arcolectric
arose.

Bulgin Components designs and manufactures connectors, switches and other
electromechanical components for industrial markets.

Turnover was down on the previous year to £7,931,000 (2003: £8,349,000)
returning operating profits of £376,000 compared to £489,000 in the previous
year. Gross margins remained steady at 41%.

The market has picked up in the first four months of the new financial year with
incoming orders of £3,463,000 and outgoing shipments of £3,195,000 up 16% and
14% respectively compared with the first four months of the prior year.

Arcolectric specialises in the manufacture of appliance switches, indicator
lights and fuseholders for the consumer and industrial markets.

Arcolectric manufactures from three locations. Automated assembly is housed in
an 80,000 square foot facility in Surrey employing 188 staff. Hand assembly
takes place in Tunisia at a leasehold premises of 30,000 square feet employing
270 staff and in China from a 42,000 square foot leasehold premises employing
165 staff.

Worldwide Sales and Administration are based in Surrey except for US Sales which
is based in California. Arcolectric exports 75 per cent. of its products to over
sixty countries including the US, China and Turkey.

Arcolectric was acquired by Elektron on 23 December 2003 for a consideration of
£352,000 cash and the assumption of £1,441,000 of lease finance debt. Under
current accounting conventions this transaction has resulted in a negative
goodwill balance of £2,430,000. That amount is released to the profit and loss
account in line with estimated asset utilisation. £1,173,000 has been released
to profit in the year just ended. The remaining £1,257,000 will be released
mainly in the year ending 31 January 2005.

Turnover for the period from 23 December 2003 to 31 January 2004 was £1,403,000
returning operating profits of £160,000.

In the first four months of the new financial year incoming orders were
£5,178,000 and outgoing shipments of £5,436,000. During the receivership a
backlog of orders built up which resulted in an exceptional level of sales in
the first few months of ownership. Going forward we expect that monthly sales at
Arcolectric will settle at a lower level.

BP Purchasing distributes hard to find electronic and electromechanical
components. Turnover was up on the previous year to £799,000 (2003: £730,000)
returning operating losses of £16,000 compared to £91,000 in the previous year.
Gross margins improved from 25% to 30%.

Milmega, which manufactures microwave amplifiers, was sold on 3 February 2004 to
the local management for a final consideration of £953,000. The operating loss
of £38,000 has been included in the consolidated accounts but the net assets at
31 January 2004 have been excluded.

Gearing and balance sheet

At 31 January 2004, net gearing on tangible net assets was 36% compared with
284% the previous year.

Tangible net assets at the year-end had increased 740% to £4,596,000, which
equates to a tangible net asset value per share of 6.2p per share compared to
1.1p per share at 31 January 2003.


Earnings per share and dividends

Earnings per share for the year ended 31 January 2004, before goodwill release/
amortisation were 0.63p (year ended 31 January 2003: loss 5.45p). Earnings per
share for the year ended 31 January 2004, after goodwill release/amortisation
were 2.42p (year ended 31 January 2003: loss 6.18p).


The Board cannot propose a dividend until the parent company, Elektron Plc, has
positive revenue reserves. At 31 January 2004, the reserves stood at £568,000
negative. The goodwill releases referred to above together with expected current
year profits will create positive reserves, which will allow the Board to
consider a dividend payment in the current year.

Future strategy

Our strategy has three major elements:

   • To continue to reduce costs to offset margin pressure by making use of
    low cost manufacturing facilities overseas
   • To maximise the sales potential of the Bulgin and Arcolectric brands
   • To acquire complementary businesses where suitable opportunities arise


Outlook

Bulgin Components is trading well above the level of the previous year and
Arcolectric is returning reasonable operating profits, especially when
considered against the background of its receivership. It now operates with a
significantly lower overhead base and its daily output is higher than under
previous ownership with an increased contribution from the overseas
manufacturing facilities.

We expect to report continued progress in the current financial year.

Adrian Girling

Executive Chairman


                                Group Profit and Loss Account

Preliminary Results for year ended 31 January 2004

                                                   
                                                   2004                   2003
                                                  £'000                  £'000

Turnover - continuing operations                  8,730                  9,079
- discontinued operations                         1,850                  5,558
- acquisitions                                    1,403                      -
                                                ---------             ---------
                                                 11,983                 14,637
                                                ---------             ---------

Cost of sales                                    (7,371)                (9,550)

Gross profit                                      4,612                  5,087

Net operating expenses - normal                  (2,866)                (6,222)
- exceptional                                         -                   (697)
                                                ---------              ---------
Operating profit/(loss) - continuing              1,771                   (409)
operations
- discontinued operations                          (185)                (1,423)
- acquisitions                                      160                      -
                                                ---------              ---------
                                                ---------              ---------
                                                  1,746                 (1,832)

Loss on closure/disposal of discontinued
operations                                          (47)                (1,440)

Profit on disposal of freehold property               -                     61
                                                ---------             ---------
Profit/(loss) on ordinary activities before
interest                                          1,699                 (3,211)

Net interest payable                                (94)                  (155)
                                                ---------             ---------
Profit/(loss) on ordinary activities before
taxation                                          1,605                 (3,366)

Taxation on (profit)/loss on ordinary              (299)                   114
activities
                                                ---------             ---------
Profit/(loss) on ordinary activities after
taxation                                          1,306                 (3,252)

Minority interests                                    -                     34
                                                ---------              ---------
Profit/(loss) attributable to shareholders        1,306                 (3,218)

Dividends                                             -                      -
                                                ---------              ---------
Transfer to/(from) reserves                       1,306                 (3,218)
                                                ---------              ---------

Earnings/(loss) per ordinary share - basic         2.42p                 (6.18p)

Earnings/(loss) per ordinary share before
goodwill release/ amortisation - basic             0.63p                 (5.45p)
Average number of shares in issue            54,015,031             52,034,443


Analysis of Operating Profit/(Loss)

Operating
profit/(loss)
on continuing
operations/
acquisitions  - operating profit/(loss)            796                       (2)
              - exceptional items                    -                     (407)
              - negative goodwill                1,135                        -
                 release/goodwill
                 amortisation                 ---------                ---------
                                                 1,931                     (409)
                                             ---------                 ---------

Operating
loss on
discontinued 
operations    - operating loss                    (14)                    (752)
              - exceptional items                   -                     (290)
              - goodwill amortisation            (171)                    (381)
                                                --------              ---------
                                                 (185)                   (1,423)
                                                ---------             ---------



                                            Group Balance Sheet

Preliminary Results for year ended 31 January 2004

                                                31 January          31 January
                                                      2004                2003
                                                     £'000               £'000
Fixed assets
Negative goodwill                                   (1,257)                413
Tangible assets                                      3,149               1,809
Own shares                                              20                   -
                                                    --------            --------
                                                     1,912               2,222
                                                    --------            --------

Current assets
Stocks                                               2,605               1,318
Debtors                                              4,384               2,445
Cash at bank and in hand                             1,123                 129
                                                    --------           --------

                                                     8,112               3,892

Creditors: amounts falling due within one
year                                                (4,659)             (4,086)
                                                    --------           --------

Net current assets/(liabilities)                     3,453                (194)
                                                    --------           --------

Total assets less current liabilities                5,365               2,028

Creditors: amounts falling due after more
than one year                                       (1,318)               (619)

Provisions for liabilities and charges                (708)               (449)
                                                    --------           --------
Net assets                                           3,339                 960
                                                    --------            --------

Capital and reserves
Called - up share capital                            3,730               2,602
Share premium                                          235                 270
Profit and loss account                               (626)             (1,912)
                                                    --------            --------
Capital employed                                     3,339                 960
                                                    --------            --------

Notes:

1.       Audited financial statements will be sent to shareholders towards the
end of June 2004. Copies of this announcement are available free of charge from
the Company's registered office at Alfreds Way, Barking, Essex IG11 0AZ for a
period of one month from the date hereof and copies of the audited financial
statements will be so available for at least 14 days from date of publication.

2.       The Company's financial statements for 2004, from which the figures
contained in this statement have been extracted, have not yet been reported on
by the Company's auditors or filed with the Registrar of Companies. The
financial statements for 2003, from which the figures contained in this
preliminary statement have been extracted, have been filed and contain an
unqualified audit report with no reference to section 237 of the Companies Act
1985.




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