Preliminary Results

Elektron PLC
27 May 2005



Embargoed for release: 7:00 a.m. 27 May 2005

                                  ELEKTRON PLC

            Preliminary results for the year ended 31st January 2005

Elektron PLC ('Elektron'), the AIM quoted components manufacturer announces its
preliminary results for the year ended 31st January 2005.

Key Points:

Operating profits on continuing operations before goodwill release of £1,653,000
(2004: £796,000)

Profit before taxation of £2,602,000 (2004: £1,605,000)

Earnings per share before goodwill of 1.50p (2004: earnings 1.26p). Earnings per
share after goodwill 2.67p (2004: earnings 2.42p)

Net cash of £250,000 (2004: Net borrowings of £1,651,000)

Proposed final dividend of 0.3p per share (2004: nil)

Current year has started satisfactorily

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 continued improvement in the Group's results.

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

Turnover was up on the previous year to £8,735,000 (2004: £7,931,000) returning
operating profits of £778,000 (before exceptional charges of £453,000) compared
to £376,000 in the previous year. Gross margins remained stable at 41% despite
the transfer of assembly to Tunisia incurring additional short term labour costs
whilst recruitment and training took place. With the large majority of assembly
now in Tunisia margins are expected to improve in the current year.

In the first three months of the new financial year incoming orders were
£2,447,000 (2004: £2,588,000) and outgoing shipments £2,380,000 (2004:
£2,489,000).

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

Turnover was £13,948,000 returning operating profits of £1,286,000 with gross
margins of 34%. As mentioned previously, sales were boosted by the backlog of
orders arising prior to the acquisition of Arcolectric in December 2003.

In the first three months of the new financial year incoming orders were
£3,169,000 and outgoing shipments of £3,218,000 which is considered to be more
representative of ongoing sales.


Gearing and balance sheet

At 31 January 2005, net cash inflows of £1,901,000 had turned net borrowings at
the previous year-end of £1,651,000 into net cash of £250,000.
Tangible net assets at the year-end had increased 14% to £5,242,000, which
equates to a tangible net asset value per share of 6.9p per share compared to
6.2p per share at 31 January 2004.


Earnings per share and dividends

Earnings per share for the year ended 31 January 2005, before goodwill were
1.50p (year ended 31 January 2004: 1.26p). Earnings per share for the year ended
31 January 2005, after goodwill were 2.67p (year ended 31 January 2004: 2.42p).

The Board is proposing a final dividend of 0.3p per share (2004: nil) payable on
5 August 2005.

Future strategy

The need to reduce costs continuously to offset margin pressure by making use of
low cost manufacturing has become part of the culture. Our customers are under
pressure to reduce their costs. To meet their price expectations we must reduce
our costs too. We are well placed, with our own manufacturing facilities in
Tunisia and China, to continue this process, also to serve the growing market in
China. Transfer is taking place at a measured pace to make sure we maintain high
levels of customer service, protecting and re-enforcing the Arcolectric and
Bulgin brand reputations.

During the year we explored a number of potential acquisitions. We have not been
in agreement with the high value some owners place on businesses complementary
to ours. Our conclusion is that whilst opportunities may arise from time to
time, we cannot rely on acquisitions to grow our business.

In 2004 our priority was to get Arcolectric back into shape following the
acquisition from the Receiver, and to transfer most of the Bulgin assembly
operations to Tunisia.

With the businesses now on even keel, we are putting greater emphasis on the
development of innovative new products. The Ethernet and USB versions of the
Bulgin waterproof connectors have been successful beyond our expectations, with
immediate sales growth through catalogue distributors both in Europe and the
USA. The launch of a Firewire (1EEE 1394) version is imminent. This is the
beginning of our determined effort to transition from 'Connectors to
Connectivity'.

Taking this beyond our traditional expertise in electromechanical products, we
intend to explore the opportunities for wireless connectivity, in relation to
the markets we serve.
For instance, in December 2004, release of the ZigBee 1.0 specification
confirmed a global standard for reliable, cost effective, low power wireless
connectivity, targeted at industrial, building management, home appliance
monitoring and control markets. The Board believes that there will be
substantial growth in the applications that employ this technology.

We do not believe in breaking new ground with high technology developments. We
will develop robust solutions to customer problems based on proven technologies
for the customers and markets we currently target. By providing component
subsystems in selected growth markets to customers looking to reduce their fixed
costs we plan to achieve strong organic growth. We have already started to incur
costs towards the development of innovative electronic products. We will adopt a
conservative approach to the cost and speed of development based on
opportunities as they arise.

There are companies who do not have the channels to market enjoyed by Bulgin and
Arcolectric, who lose money, yet are valued at multiples of sales because they
claim to have a unique technological business proposition. In contrast, Elektron
is profitable, has established brands and experienced management. We are
optimistic that experienced investors will recognise that these strengths,
combined with a determined and measured approach to the development of
innovative products in growth markets will underpin the value of their
investment in Elektron.



Outlook

We anticipate that weakness in some of our markets will be offset by the cost
savings in having moved the majority of assembly to Tunisia. The current year
has started satisfactorily



Adrian Girling

Executive Chairman


Group Profit and Loss Account

Preliminary Results for year ended 31 January 2005

                                                      2005                2004
                                                      2004                2003
                                                     £'000               £'000

Turnover - continuing operations                    22,683              10,133
- discontinued operations                              333               1,850
                                                   -----------------------------
                                                    23,016              11,983
                                                   -----------------------------

Cost of sales                                      (14,635)             (7,371)

Gross profit                                         8,381               4,612

Net operating expenses                              (5,711)             (2,866)
                                                   ---------           ---------
Operating profit/(loss) - continuing operations      1,653                 796
- discontinued operations                              (63)               (185)
- negative goodwill release                          1,080               1,135
                                                   ---------           ---------
                                                   -----------------------------
Operating profit                                     2,670               1,746

Profit/(loss) on closure/disposal of discontinued
operations                                              33                 (47)
                                                   -----------------------------

Profit on ordinary activities before interest        2,703               1,699

Net interest payable                                  (101)                (94)
                                                   -----------------------------
Profit on ordinary activities before taxation        2,602               1,605

Taxation on profit on ordinary activities             (574)               (299)
                                                   -----------------------------
Profit on ordinary activities after taxation         2,028               1,306

Dividends                                             (229)                  -
                                                   -----------------------------
Transfer to reserves                                 1,799               1,306
                                                   -----------------------------

Earnings per ordinary share - basic                   2.67p               2.42p

Earnings per ordinary share before goodwill
release/                                              1.50p               1.26p
amortisation - basic








Group Balance Sheet

Preliminary Results for year ended 31
January 2005

                                                 31 January         31 January   
                                                      2005                2004
                                                     £'000               £'000
Fixed assets
Negative goodwill                                        0              (1,257)
Tangible assets                                      2,528               3,149
Investment in own shares                                20                  20
                                                    ----------------------------
                                                     2,548               1,912
                                                    ----------------------------

Current assets
Stocks                                               3,000               2,605
Debtors                                              3,946               4,384
Cash at bank and in hand                             1,581               1,123
                                                    ----------------------------

                                                     8,527               8,112

Creditors: amounts falling due within one
year                                                (4,592)             (4,659)
                                                    ----------------------------

Net current assets                                   3,935               3,453
                                                    ----------------------------

Total assets less current liabilities                6,483               5,365

Creditors: amounts falling due after more
than one year                                         (512)             (1,318)

Provisions for liabilities and charges                (729)               (708)
                                                    ----------------------------
Net assets                                           5,242               3,339
                                                    ----------------------------

Capital and reserves
Called - up share capital                            3,821               3,730
Share premium                                          244                 235
Other reserves                                          20                   -
Profit and loss account                              1,157                (626)
                                                    ----------------------------
Capital employed                                     5,242               3,339
                                                    ----------------------------

Notes:

1.   Audited financial statements will be sent to shareholders towards the
end of June 2005. 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 2005, 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 2004, 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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