Trading Statement

RNS Number : 9494F

Elektron Technology PLC

01 November 2018

 

Elektron Technology plc

("Elektron", the "Group" or the "Company")

Trading Update

Elektron Technology plc (AIM: EKT), the global technology group, is pleased to provide an update on trading for the third quarter ended 31 October 2018.

Group trading was strong in Q3 with sales increasing 16.5% compared to the same period last year to £9.9m (2018: £8.5m).  Year to date sales have increased by 17% to £25.8m (2017: £22.1m).

Sales £m	Unaudited		Unaudited
	Q3 2019	Q3 2018	YTD 2019	YTD 2018
Bulgin	8.8	7.8	23.0	20.3
Checkit	0.3	0.1	0.8	0.3
Elektron Eye Technology	0.8	0.6	2.0	1.5
Total	9.9	8.5	25.8	22.1

Bulgin achieved record quarterly sales of £8.8m in Q3, 13% higher than the same period last year (2017: £7.8m) following successful manufacturing scale-up to convert the continued, unprecedented order demand seen in the first half into sales.  Bulgin sales for the full year are now expected to be significantly ahead of management's previously upgraded expectations.  Further, given the continued successful implementation of Bulgin's high margin product growth strategy, aided by operational gearing and in-house capacity improvements, the Board anticipates that Bulgin's net margin will be in the region of 30% for the full year; substantially ahead of both previous expectations and last year (26.4% net margin).

Checkit's sales grew strongly in the period, 200% higher than prior year.  In addition, Checkit has now completed the development of its next generation Work Management capability and is commencing roll out to customers.  This release can be deployed on any Android device (phone, tablet etc.) and adds location based work management which has significant benefits to customers and extends the target market outside of the food industry.  This opportunity in other sectors is evidenced by the recent adoption of Checkit by the Blood Sciences Department of Leeds Teaching Hospitals NHS Trust. One of the largest in the UK, they now rely on Checkit to ensure that samples, reagents and equipment are kept under the correct conditions even while they are in transit. The initial roll out to almost fifty locations is nearing completion and there is potential to expand this to further departments and activities.  Checkit launched ahead of schedule in the US and the sales team are working to establish this sales channel having already identified regional and national opportunities.

Elektron Eye Technology's (EET) performance is also well ahead of management expectations, following a strong quarter of sales which saw revenue 33% higher than the prior year.  Full year sales for EET are now expected to be significantly ahead of previous management expectations, which would result in the business being profitable.

Group net cash was approximately £8.5m at 31 October 2018 (31 July 2018:  £6.8m; 31 January 2018: £5.2m) despite being impacted by a modest working capital investment due to the very strong trading performance in the quarter.  Net cash at the full year is now expected to be significantly ahead of market expectations.

John Wilson, Chief Executive Officer of Elektron, said:

"The Group's Q3 performance has been exceptional.  The Board now expects full year performance to be significantly ahead of market expectations."

Elektron Technology plc		[phone]
www.elektron-technology.com
John Wilson (Chief Executive Officer)
Andrew Weatherstone (Chief Financial Officer & Company Secretary)
N+1 Singer (Nominated Adviser & Broker)
Shaun Dobson / Jen Boorer (Corporate Finance)		[phone]

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

Notes to Editors:

Elektron conceives, designs and markets innovative products and services for business that connect, monitor and control. We have a multi skilled team of engineers, software and product line specialists based in Cambridge focused on the opportunities created by global growth in the following areas:

- Demand for ubiquitous power and data: Bulgin

- Real-time operations management using Internet of Things (IoT) technology: Checkit

- Screening for the effects of ageing on sight: Elektron Eye Technology

 

END

 

 

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