Trading Update

RNS Number : 8714T

Elektron Technology PLC

23 July 2015

 

23 July 2015

Elektron Technology plc

(AIM: EKT, "Elektron" or "the Company" or the "Group")

Trading Update

Ahead of its Annual General Meeting on Thursday 30 July 2015, Elektron Technology plc, the global technology group, provides an update on recent trading.

Revenues in the six months ending 31 July 2015 are expected to be marginally lower than those for the same period last year.  As announced at the time of the full year results, the Group continues to experience declines in markets for some of its legacy products. Elektron remains committed to its twin strategies of delivering efficiency and productivity improvements in its established businesses and investing in new product development to generate future growth. 

First half trading performance of the established businesses (excluding Checkit) is expected to show a significant improvement over the same period last year, benefiting from continued successful implementation of this strategy.

As previously stated, in the current financial year, investment in new product development as well as scale up costs associated with Checkit are expected to absorb much of the cash flow from the established businesses. The Checkit development programme remains on course with two major new product launches expected during the second half of the financial year.

The Group's overall performance including the scale up costs associated with Checkit is expected to be in line with management's expectations for the first half of the year, benefitting from the absence of any cash exceptional costs in the period (H1 2014: £0.8m).

Group net debt is expected to be around £2m at 31 July (31 January 2015: £2.7m, 31 July 2014:  £4.7m).

The Group expects to announce its results for the half year to 31 July 2015 on 10 September 2015.

John Wilson, Chief Executive of Elektron, said:

"These results further demonstrate the progress we have made during the last 18 months with strong cash generation in the first half of the year enabling us to invest in next generation Checkit product development and associated scale up costs."

For further information:

Elektron Technology  www.elektron-technology.com	[phone]
John Wilson - Chief Executive Officer Andy Weatherstone - Chief Financial Officer
finnCap (Nominated Adviser, Financial Adviser and Broker)	[phone]
Ed Frisby/Scott Mathieson (Corporate Finance)
Malar Velaigam (Corporate Broking)

Notes to Editors

Elektron conceives, designs and markets innovative engineered products and services for businesses 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 trends in the following areas:

   --      New waves of "aware" business applications: Checkit

   --      Demand for ubiquitous power and data: Bulgin

   --      Growth in high precision manufacture: Queensgate

In addition, Elektron owns a portfolio of well-established products and brands that provide cash flow as well as customer access and feedback. 

Forward looking statements

Statements contained in this trading statement are based on the knowledge and information available to the Company's directors at the date it was prepared and therefore the facts stated and views expressed may change after that date. By their nature, the statements concerning the risks and uncertainties facing the Company in this Statement involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. To the extent that this Statement contains any statement dealing with any time after the date of its preparation such statement is merely predictive and speculative as it relates to events and circumstances which are yet to occur. The Company undertakes no obligation to update these forward looking statements.

 

END

 

 

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