Interim Results
Elektron PLC
26 September 2003
Embargoed for release: 7.30 a.m. 26 September 2003
ELEKTRON PLC
Interim results for the period ended 31st July 2003
Elektron PLC ('Elektron'), the AIM and ShareMark quoted components and microwave
electronics company announces results for the half-year ended 31st July 2003.
Key Points:
• Profit before taxation of £201,000 in the six months to 31 July 2003
compared to a loss before taxation of £854,000 in the six months to
31 July 2002 and a loss before taxation of £3,366,000 in the year ended
31 January 2003.
• Turnover on continuing operations experienced a small reduction to £5.7
million (2002: £5.8 million)
• Operating profits on continuing operations, before exceptional items and
goodwill amortisation, increased to £339,000 (2002: £90,000)
• Turnover at Bulgin Components of £4,239,000 produced operating profits of
£423,000 (2002: Turnover £4,403,000 and operating profits £454,000).
• Turnover at Milmega of £1,033,000 produced operating profits of £38,000
(2002: Turnover £1,060,000 and operating losses £74,000).
• Turnover at BP Purchasing of £424,000 producing operating profits of
£13,000 (2002: Turnover £359,000 and operating losses of £51,000).
• Borrowings reduced to £1,449,000 at 31 July 2003 from £1,680,000 at 31
January 2003.
For further information please contact:
Adrian Girling Roland Cornish
Executive Chairman Chairman
Elektron PLC Beaumont Cornish Limited
Tel: 0208 477 9300 Tel: 0207 628 3396
Chairman's Statement
I am pleased to be able to confirm some improvement in the Group's performance.
This comes from the elimination of loss making businesses together with the
turnaround at Milmega and BP Purchasing and reduction in parent company costs.
With careful control of costs and cash we have begun to move forward from the
difficulties of the past and to invest in new product introductions and
development of new markets for the future.
The launch of Ethernet and USB versions of Bulgin Components' popular range of
'Buccaneer' waterproof connectors has been well received by the market and have
contributed to growth of this product range, offset by decline in lower margin
commodity products. Sales volume to UK distributors is down in line with the
market. UK OEM sales have grown, reflecting focus on product 'design in'. We
have seen growth in USA sales, offset by weakness in Europe.
Milmega makes steady progress towards developing new products and markets to
replace the business lost when the telecoms market for microwave amplifiers
collapsed. An innovative pulsed amplifier design for radar training and a
unique implementation of a harmonic radar concept for counter surveillance
applications have been well received by existing and potential customers. Work
continues to develop distribution channels to provide access to Far East
markets.
BP Purchasing has done well to achieve sales and profit growth in a flat market,
providing a service sourcing 'hard to find' components. A loyal customer base
is steadily growing on the strength of good customer service in selected niche
areas of component distribution.
Earnings per share and dividends
Earnings per share for the six months ended 31 July 2003, before goodwill
amortisation, were 0.42p (six months ended 31 July 2002: loss 0.81p). Earnings
per share for the six months ended 31 July 2003, after goodwill amortisation,
were 0.26p (six months ended 31 July 2002: loss 1.20p). The Board is not
proposing an interim dividend.
Annual General Meeting
A separate notice of the Annual General Meeting, which is to be held on 11
December 2003, will be sent to shareholders in accordance with the prescribed
notice period.
Future strategy and outlook
We have not seen, nor do we expect any help from our market place, which tends
to be slightly stronger in the first half. We will continue to invest in
selected new product and new market development, in so far as cash allows.
Adrian Girling
Executive Chairman
Group Profit and Loss Account
Unaudited Interim Results to 31 July 2003
Half year Half year Year
to to to
31 July 31 July 31 January
2003 2002 2003
£'000 £'000 £'000
Turnover - continuing operations 5,696 5,822 11,074
- discontinued operations - 2,161 3,563
--------- --------- ---------
5,696 7,983 14,637
--------- --------- ---------
Operating profit/(loss) - continuing 254 5 (696)
operations
- discontinued - (820) (1,136)
operations
--------- --------- ---------
254 (815) (1,832)
Loss on closure of discontinued operations - - (1,440)
Profit on disposal of freehold property - 61 61
--------- --------- ---------
Profit/(Loss) on ordinary activities before
interest 254 (754) (3,211)
Net interest payable (53) (100) (155)
--------- --------- ---------
Profit/(Loss) on ordinary activities before 201 (854) (3,366)
taxation
Taxation on (profit)/loss on ordinary (66) 195 114
activities
--------- --------- ---------
Profit/(Loss) on ordinary activities after
taxation 135 (659) (3,252)
Minority interests - 37 34
Profit/(Loss) attributable to shareholders 135 (622) (3,218)
Dividends - - -
Transfer to/(from) reserves 135 (622) (3,218)
Earnings/(Loss) per share - standard 0.26p (1.20)p (6.18)p
- before goodwill
amortisation 0.42p (0.81)p (5.45)p
Analysis of Operating Profit/(Loss)
Operating profit/(loss)
on continuing
operations
- operating profit/
(loss) 339 90 (118)
- exceptional items - - (407)
- goodwill
amortisation (85) (85) (171)
254 5 (696)
Operating loss on
discontinued operations
- operating loss - (553) (636)
- exceptional items - (151) (290)
- goodwill - (116) (210)
amortisation - (820) (1,136)
Group Balance Sheet
Unaudited Interim Results at 31 July 2003
31 July 31 July 31 January
2003 2002 2003
£'000 £'000 £'000
Fixed assets
Intangible assets 328 1,423 413
Tangible assets 1,581 2,513 1,809
1,909 3,936 2,222
Current assets
Stocks 1,200 2,131 1,318
Debtors 2,343 3,353 2,445
Cash at bank and in hand 41 1,731 129
3,584 7,215 3,892
Creditors: amounts falling due within one year (3,647) (6,890) (4,086)
Net current (liabilities)/assets (63) 325 (194)
Total assets less current liabilities 1,846 4,261 2,028
Creditors: amounts falling due after more than (429) (713) (619)
one year
Provisions for liabilities and charges (322) - (449)
Net assets 1,095 3,548 960
Capital and reserves
Called - up share capital 2,602 2,602 2,602
Share premium 270 270 270
Profit and loss account (1,777) 679 (1,912)
Shareholder's funds - Equity 1,095 3,551 960
Minority interests - (3) -
Capital employed 1,095 3,548 960
Notes:
1. The financial information in this statement does not constitute
statutory accounts. The financial information in respect of the year ended 31
January 2003 has been extracted from the statutory accounts which have been
filed with the Registrar of Companies. The auditors' report on those accounts
was unqualified and did not contain any statement under Section 237 of the
Companies Act 1985.
2. The interim financial information has been prepared on the basis of
the accounting policies set out in the Group's statutory accounts for the year
ended 31 January 2003. Fixed annual charges are apportioned to the interim
period on the basis of time elapsed. Other expenses are accrued in accordance
with the same principles used in the preparation of the annual accounts.
This information is provided by RNS
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