Preliminary Results

Elektron PLC
27 June 2003






Embargoed for release: 7.00 a.m. 27 June 2003



ELEKTRON PLC


          Preliminary results for the year ended 31st of January 2003


Elektron PLC ('Elektron'), the AIM and ShareMark quoted components and microwave
electronics company announces results for the year ended 31st January 2003.



Key Points:


   •Turnover on continuing operations experienced a 12% decline to £11.1
    million (2002: £12.6 million)



   •Operating losses on continuing operations, before exceptional items and
    goodwill amortisation, of £118,000 (2002: £328,000)



   •Exceptional expenses totalling £697,000 (2002: £1,501,000)



   •Solid performance at Bulgin Components (which remains the core business)
    with operating profits of £489,000 (2002: £271,000 loss) on stable turnover.



• Operating losses on discontinued operations, before exceptional items
and goodwill amortisation, of £636,000 plus £1,440,000 of closure costs



   •Continuing subsidiaries operating profitably in the current year






For further information please contact:

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





Chairman's Statement


The unfavourable market conditions in the last two years together with
consequent business closures has seriously affected the Group's financial
performance and stability. Loss making operations have been closed or sold,
major cost cutting plans have been implemented and a new Board structure is in
place operating from a lower overhead base.


Whilst the trading subsidiaries are profitable at the operational level, the
Group is still managing the cashflow problems created by two years of
significant losses.  The Group is funded principally by invoice discounting
facilities which fluctuate with the level of sales.



The Group is considering ways to raise long term finance to improve financial
stability and allow the existing businesses to develop organically in market
places which, whilst remaining uncertain, appear to have stopped declining.



Discontinued operations


During the year under review three of the Group's six operating companies were
discontinued.


Bulgin Power Source (BPS) designed and manufactured power supplies and power
management products for applications in information technology, security and
access, automation, process control and communications. It entered voluntary
liquidation on 2 December 2002 following a decline in its incoming orders,
manufacturing problems and mounting losses.


Consequently, sub-contract manufacturing for its fellow subsidiary Powertron
also ceased. The losses that BPS was incurring were jeopardising the stability
of the Group to such an extent that the Board had little alternative but to
appoint liquidators in order to protect other businesses within the Group.


Negotiations for the assignment of the leasehold premises are ongoing.


Powertron Limited, which designed and sold power supplies principally for the
rail industry, was sold on 7 January 2003.  Following the closure of BPS,
Powertron had to find new sub-contractors to manufacture its products. The costs
of setting up the new arrangements were prohibitive and the Board was not
prepared to make further investment in the power supply market where further
cash consumption could have jeopardised other parts of the Group.


The business and certain assets of Powertron were sold to a management buy-out
team for £100,000 in cash on 7 January 2003.  Retained book debts totalling
£444,000 have now almost entirely been collected and retained liabilities of
£259,000 have been settled in the majority. The management buy-out team agreed
to deal with any customer warranty claims arising pre-completion at a cost
payable by Powertron Limited of £25,000.



Amplifier for Industry LLC, (AFI) which distributed radio frequency products
from its base in Long Island, New York, ceased operations on 5 December 2002
following a decline in the markets it served.



Loss on disposal/closure of operations totalled £1,440,000.  Included within
this was £922,000 in respect of Powertron, £383,000 in respect of Bulgin Power
Source and £135,000 in respect of AFI.







Continuing Operations



Bulgin Components designs and manufactures connectors, switches and other
electromechanical components for industrial markets. Products are sold through
distribution channels worldwide and directly to Original Equipment
Manufacturers.


Turnover was up very slightly on the previous year to £8,349,000 (2002:
£8,292,000) but the cost savings arising from the restructuring actions taken in
2001 together with improvements in the product mix saw gross margins increase
from 34.4% to 40.2% which, taken with the sales increase, added £509,000 of
profits.  Overheads decreased from £3,123,000 to £2,871,000 so at the operating
level, before exceptional items and after parent cost allocations, profits of
£489,000 were earned against a loss last year of £271,000.



Milmega Limited, which manufactures microwave amplifiers, suffered a 43%
reduction in its sales to £1,995,000 (2002: £3,510,000) following the collapse
of the telecoms market.  Its gross margin consequently suffered dropping from
42.0% to 33.7% the result of which was a gross profit of £673,000 against
£1,478,000 the previous year.  Overheads declined from £834,000 to £789,000 with
further restructuring since the year-end.   In the year under review operating
losses, after parent cost allocations, of £116,000 were incurred compared with
an operating profit of £644,000 the previous year.



BP Purchasing (Electronics) Limited, sources electronic and electromechanical
components on behalf of client companies.   Turnover fell by 2% to £730,000 from
£748,000 with margins remaining stable at 28%.  Overheads fell to £295,000 from
£346,000 resulting in operating losses, after parent cost allocations, of
£91,000 compared to £139,000 in the previous period.



Board structure


The Board structure and its overhead cost has reduced by £410,000 on an
annualised basis.  There are now two executive directors being Adrian Girling, a
Chartered Engineer with 20 years experience in general management who was
appointed Executive Chairman in January 2003 and Christopher Leigh who continues
as Finance Director. There is one non-executive director, Ronald Bulgin.


The head office unit has been closed with staff working there made redundant.
Negotiations for the assignment of the lease are on-going.  Head office
functions are now effected from the premises of Bulgin Components.



Group Results


In the year to 31 January 2003 the Group experienced a 12% fall in total
turnover on continuing operations to £11.1 million (2002: £12.6 million).
Operating losses on continuing businesses, before exceptional items and goodwill
amortisation were £118,000 (2002: £328,000).   Details of continuing subsidiary
performance are provided above.


Exceptional items totalling £697,000 consist of £313,000 at Elektron, £154,000
at Bulgin Power Source Plc, £136,000 at Powertron and £94,000 at Bulgin
Components. The Elektron costs relate principally to compensation for alteration
and termination of employment contracts and provision for ongoing leasehold
obligations.  Bulgin Power Source costs relate to obligations and provisions
arising through guarantees given by Elektron.  Powertron costs relate to
re-organisation and redundancy costs arising through factory integration at the
start of the year.  Bulgin Components costs relate to pension provisions arising
from the actuarial calculation of the deficit on the final salary scheme at the
commencement of scheme wind up.



Loss per share and dividends

Loss per share before goodwill amortisation was 5.45p (2002: 3.87p) and the loss
per share after goodwill amortisation was 6.18p (2002: 4.49p). The Board is not
proposing that a dividend be paid in respect of the year.



Future strategy and outlook


The Group and its shareholders have sustained a significant loss in value
following the collapse of the markets served by Elektron. Despite significant
restructuring the drop in sales was so rapid that losses could not be stemmed in
some areas.


Losses and write-offs before taxation for the last two years have totalled £6.0
million and the Group has had to adopt defensive measures to protect itself and
provide some base for moving forwards.  This has included the sale and leaseback
of freehold properties, raising finance through invoice discounting, redundancy
programmes, business closure and fire sales.


It would appear that we are now through the worst with operating subsidiaries
and Group trading profitably to date in the current financial year.  Our aim is
to continue to manage the surviving businesses profitably and to grow through
new product introductions and development of new markets.






Adrian Girling

Executive Chairman




Group Profit and Loss Account

Year ended 31 January 2003
                                                                           (As
                                                                      restated)
                                                        Unaudited      Audited
                                                             2003         2002
                                                            £'000        £'000

Turnover                           - continuing            11,074       12,550
                                   operations
                                   - discontinued           3,563        4,361
                                   operations             ---------    ---------
                                                           14,637       16,911
Cost of sales                                              (9,550)     (11,115)
                                                          ---------    ---------
Gross profit                                                5,087        5,796

Net operating expenses             - normal                (6,222)      (6,828)
                                   - exceptional             (697)      (1,501)


                                                          ---------    ---------
Operating loss                     - continuing              (696)      (2,000)
                                   operations             ---------    ---------
                                   - discontinued          (1,136)        (533)
                                   operations
                                                          ---------    ---------
Operating loss                                             (1,832)      (2,533)

- Loss on closure of discontinued                          (1,440)           -
operations

Profit on disposal of freehold property                        61          122
                                                          ---------    ---------
Loss on ordinary activities before interest                (3,211)      (2,411)

Net interest payable                                         (155)        (241)
                                                          ---------    ---------
Loss on ordinary activities before taxation                (3,366)      (2,652)

Taxation on loss on ordinary activities                       114          525
                                                          ---------    ---------
Loss on ordinary activities after taxation                 (3,252)      (2,127)

Minority interests                                             34           35

Dividends                                                       -            -
                                                          ---------    ---------
Transfer from reserves                                     (3,218)      (2,092)
                                                          =========    =========





Note - analysis of operating loss

Operating loss on continuing
operations
                                     - operating loss          (118)      (328)
                                     - exceptional items       (407)    (1,501)
                                     - goodwill                (171)      (171)
                                     amortisation           ---------  ---------
                                                               (696)    (2,000)
                                                            ---------  ---------

Operating loss on discontinued
operations
                                     - operating loss          (636)      (417)
                                     - exceptional items       (290)         -
                                     - goodwill                (210)      (116)
                                     amortisation           ---------  ---------
                                                             (1,136)      (533)
                                                            ---------  ---------



Statement of Total Recognised Gains and Losses

Year ended 31 January 2003

                                                          Unaudited   Audited
                                                               2003       2002
                                                              £'000      £'000

Loss attributable to shareholders                            (3,218)    (2,092)

Unrealised surplus on revaluation of properties                   -          -
                                                            ---------  ---------
Total recognised gains and losses for the financial
year                                                         (3,218)    (2,092)
                                                            =========  =========








Note of Historical Cost Profits and Losses

Year ended 31 January 2003

                                                          Unaudited   Audited
                                                               2003       2002
                                                              £'000      £'000

Reported loss on ordinary activities before taxation         (3,366)    (2,652)

Realisation of property revaluations of previous                985        (84)
years

Difference between a historical cost depreciation
charge and the actual depreciation charge for the year
calculated on the revalued amount

                                                                  -          5
                                                            ---------  ---------
Historical cost loss on ordinary
activities before taxation                                   (2,381)    (2,731)

Taxation on loss on ordinary activities                         114        525

Minority interests                                               34         35

Dividends                                                         -          -
                                                            ---------  ---------
Historical cost loss for the year after taxation and
dividends                                                    (2,233)    (2,171)
                                                            =========  =========










Notes


1.        No final dividend is being proposed.


2.        Loss per share


The calculation of the basic loss per share is based on the losses attributable
to ordinary shareholders divided by the weighted average number of shares in
issue during the year.


The calculation of the diluted loss per share is based on the basic loss per
share, adjusted to allow for the issue of shares on the assumed conversion of
dilutive options.


The adjusted loss per share has been provided in order that the effects of
goodwill amortisation on reported losses can be fully appreciated.


The calculation of losses is based on the Group loss after taxation and is set
out below:

                           Unaudited                  Audited
                                               2003                       2002
                                     Per-share                  Per-share
                                     amount                     amount
                           Losses                     Losses
                             £'000   Pence              £'000   Pence

Loss after taxation         (3,218)           (6.18)   (2,092)           (4.49)
Amortisation of goodwill       381             0.73       287             0.62
                            --------         --------  --------         --------
Adjusted loss after         (2,837)           (5.45)   (1,805)           (3.87)
taxation                    ========         ========  ========         ========



The weighted average number of shares used in the calculations is set out below:

                      Unaudited                      Audited
                                           2003                           2002
                      Basic         Diluted          Basic         Diluted
Weighted average
number of shares in
issue
- Ordinary shares      52,034,443    52,034,443       46,575,083    46,575,083

- share options                 -             -                -        50,547
                           --------      --------         --------      --------
                       52,034,443    52,034,443       46,575,083    46,625,630
                           ========      ========         ========      ========

Loss per share
- standard                  (6.18)        (6.18)           (4.49p)       (4.48p)
- adjusted earnings         (5.45)        (5.45)           (3.87p)       (3.87p)
per share




Group Balance Sheet

Year ended 31 January 2003

                                                          Unaudited   Audited
                                                               2003       2002
                                                              £'000      £'000
Fixed assets
Intangible assets                                               413      1,624
Tangible assets                                               1,809      4,433
                                                            ---------  ---------
                                                              2,222      6,057
                                                            ---------  ---------

Current assets
Stocks                                                        1,318      2,335
Debtors                                                       2,445      3,951
Cash at bank and in hand                                        129      1,535
                                                            ---------  ---------

                                                              3,892      7,821

Creditors: amounts falling due within one year               (4,086)    (7,854)
                                                            ---------  ---------

Net current (liabilities)/assets                               (194)       (33)
                                                            ---------  ---------

Total assets less current liabilities                         2,028      6,024

Creditors: amounts falling due after more than one             (619)    (1,792)
year

Provisions for liabilities and charges                         (449)       (19)
                                                            ---------  ---------
Net assets                                                      960      4,213
                                                            =========  =========

Capital and reserves
Called - up share capital                                     2,602      2,602
Share premium                                                   270        270
Revaluation reserve                                               -        985
Profit and loss account                                      (1,912)       320
                                                            ---------  ---------
Shareholder's funds - Equity                                    960      4,177

Minority interests                                                -         36
                                                            ---------  ---------
Capital employed                                                960      4,213
                                                            =========  =========



Notes:


1.        Audited financial statements will be sent to shareholders towards the
middle of July 2003.  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 that date.


2.        The Company's financial statements for 2003, 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 2002, 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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