AGM Statement

RNS Number : 7960N

Elektron Technology PLC

31 July 2014

 



31 July 2014

Elektron Technology plc

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

AGM Statement

Chairman Keith Daley will make the following statement at Elektron's AGM later today.

"The  recent successful fundraise of £3.3m (before expenses) will allow us to focus better on further improving trading performance, on delivering the necessary returns from investment in new products and on optimising those from existing products.  This will create the conditions for organic growth which has eluded the business for several years.

"Revenues in the six months ending 31 July 2014 excluding the effect of disposals are expected to be at slightly lower than the same period last year, mainly due to the strategic decision to rationalise the Group's low margin factored products sold to the NHS. 

"As previously announced, there has been some destocking by Connectivity customers, following substantial improvements during the last nine months to the Group's on time delivery performance.  However, sales from new products are increasingly offsetting the decline in the legacy portfolio and are expected to be significantly ahead of the corresponding period last year.

"The Group's trading performance has improved as a result of both selective price increases and reductions in Selling, General & Administrative overheads implemented in the second half of last financial year.  Operational exceptional costs have now been eliminated, although the Interim Results will include exceptional costs of approximately £0.8m to cover the fund raise, renegotiation of bank facilities including debt advisory and the Strategic Alternatives process  - all of which we successfully completed in the first half.

"The Group saw a significant cash inflow as a result of the fund raise, improved working capital control and operating performance.   Net Debt on 31 July 2014 is expected to be below £5.0m compared with £8.0m at 31 January 2014." 

The Group expects to announce its results for the half year to 31 July 2014 on 11 September 2014.

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/Ben Thompson (Corporate Finance)
Malar Velaigam (Corporate Broking)
Instinctif Partners	[phone]
Adrian Duffield/Kay Larsen

Notes to Editors

Elektron conceives designs and markets innovative engineered products and services for businesses at its technology hub in Cambridge. It has a multi skilled team of engineers and product line specialists focused on the opportunities created by disruptive global trends in the following areas:

·      New waves of "aware" business applications: Internet of Things

·      Demand for ubiquitous power and data: Connectivity Solutions

·      Growth in high precision manufacture: Nano-positioning

·      Healthcare for the ageing population: Ophthalmology

·      Connected customer experiences and service delivery: E-Commerce and E-Service

In addition it owns a portfolio of well-established products and brands which provide customer access and feedback.

Elektron Technology is headquartered in Cambridge and its shares are admitted to trading on the AIM market of the London Stock Exchange.

Forward looking statements

Statements contained in this AGM 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 AGM Statement involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. To the extent that this AGM 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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