Interim Results

Elektron PLC
26 September 2003






Embargoed for release: 7.30 a.m. 26 September 2003



                                ELEKTRON PLC


              Interim results for the period ended 31st July 2003


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


Key Points:


  • Profit before taxation of £201,000 in the six months to 31 July 2003
    compared to a loss before taxation of £854,000 in the six months to 
    31 July 2002 and a loss before taxation of £3,366,000 in the year ended 
    31 January 2003.


  • Turnover on continuing operations experienced a small reduction to £5.7
    million (2002: £5.8 million)


  • Operating profits on continuing operations, before exceptional items and
    goodwill amortisation, increased to £339,000 (2002: £90,000)


  • Turnover at Bulgin Components of £4,239,000 produced operating profits of
    £423,000 (2002: Turnover £4,403,000 and operating profits £454,000).


  • Turnover at Milmega of £1,033,000 produced operating profits of £38,000
    (2002: Turnover £1,060,000 and operating losses £74,000).


  • Turnover at BP Purchasing of £424,000 producing operating profits of
    £13,000 (2002: Turnover £359,000 and operating losses of £51,000).


  • Borrowings reduced to £1,449,000 at 31 July 2003 from £1,680,000 at 31
    January 2003.


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 confirm some improvement in the Group's performance.
This comes from the elimination of loss making businesses together with the
turnaround at Milmega and BP Purchasing and reduction in parent company costs.


With careful control of costs and cash we have begun to move forward from the
difficulties of the past and to invest in new product introductions and
development of new markets for the future.


The launch of Ethernet and USB versions of Bulgin Components' popular range of
'Buccaneer' waterproof connectors has been well received by the market and have
contributed to growth of this product range, offset by decline in lower margin
commodity products.  Sales volume to UK distributors is down in line with the
market.  UK OEM sales have grown, reflecting focus on product 'design in'.   We
have seen growth in USA sales, offset by weakness in Europe.


Milmega makes steady progress towards developing new products and markets to
replace the business lost when the telecoms market for microwave amplifiers
collapsed.  An innovative pulsed amplifier design for radar training and a
unique implementation of a harmonic radar concept for counter surveillance
applications have been well received by existing and potential customers.  Work
continues to develop distribution channels to provide access to Far East
markets.


BP Purchasing has done well to achieve sales and profit growth in a flat market,
providing a service sourcing 'hard to find' components.  A loyal customer base
is steadily growing on the strength of good customer service in selected niche
areas of component distribution.



Earnings per share and dividends


Earnings per share for the six months ended 31 July 2003, before goodwill
amortisation, were 0.42p (six months ended 31 July 2002: loss 0.81p).  Earnings
per share for the six months ended 31 July 2003, after goodwill amortisation,
were 0.26p (six months ended 31 July 2002: loss 1.20p). The Board is not
proposing an interim dividend.



Annual General Meeting


A separate notice of the Annual General Meeting, which is to be held on 11
December 2003, will be sent to shareholders in accordance with the prescribed
notice period.



Future strategy and outlook


We have not seen, nor do we expect any help from our market place, which tends
to be slightly stronger in the first half.  We will continue to invest in
selected new product and new market development, in so far as cash allows.




Adrian Girling
Executive Chairman




                      Group Profit and Loss Account

Unaudited Interim Results to 31 July 2003

                                               Half year    Half year         Year 
                                                      to           to           to
                                                 31 July      31 July   31 January
                                                    2003         2002         2003
                                                   £'000        £'000        £'000

Turnover - continuing operations                   5,696        5,822       11,074
         - discontinued operations                     -        2,161        3,563
                                                 ---------    ---------    ---------
                                                   5,696        7,983       14,637
                                                 ---------    ---------    ---------

Operating profit/(loss) - continuing                 254            5        (696)
                          operations
                        - discontinued                 -        (820)      (1,136)
                          operations 
                                                 ---------    ---------    ---------
                                                     254        (815)      (1,832)

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

Profit on disposal of freehold property                -           61           61
                                                 ---------    ---------    ---------
Profit/(Loss) on ordinary activities before         
interest                                             254        (754)      (3,211)

Net interest payable                                (53)        (100)        (155)
                                                 ---------    ---------    ---------
Profit/(Loss) on ordinary activities before          201        (854)      (3,366)
taxation

Taxation on (profit)/loss on ordinary               (66)          195          114
activities
                                                 ---------    ---------    ---------
Profit/(Loss) on ordinary activities after        
taxation                                             135        (659)      (3,252)

Minority interests                                     -           37           34

Profit/(Loss) attributable to shareholders           135        (622)      (3,218)

Dividends                                               -           -            -

Transfer to/(from) reserves                           135       (622)      (3,218)


Earnings/(Loss) per share - standard                 0.26p     (1.20)p      (6.18)p
                          - before goodwill 
                            amortisation             0.42p     (0.81)p      (5.45)p



Analysis of Operating Profit/(Loss)

Operating profit/(loss)
on continuing
operations
                        - operating profit/        
                          (loss)                       339         90        (118)
                        - exceptional items              -          -        (407)
                        - goodwill               
                          amortisation                (85)       (85)        (171)
                                                       254          5        (696)

Operating loss on
discontinued operations
                        - operating loss                 -      (553)        (636)
                        - exceptional items              -      (151)        (290)
                        - goodwill                       -      (116)        (210)
                          amortisation                   -      (820)      (1,136)
                                                      


                                      Group Balance Sheet                                                           

 Unaudited Interim Results at 31 July 2003     

                                                   31 July    31 July 31 January
                                                      2003       2002       2003
                                                     £'000      £'000      £'000

 Fixed assets                                  
 Intangible assets                                     328      1,423        413
 Tangible assets                                     1,581      2,513      1,809
                                                     1,909      3,936      2,222

 Current assets                                   
 Stocks                                              1,200      2,131      1,318
 Debtors                                             2,343      3,353      2,445
 Cash at bank and in hand                               41      1,731        129
                                                     3,584      7,215      3,892

 Creditors: amounts falling due within one year    (3,647)    (6,890)    (4,086)
                                                                         
 Net current (liabilities)/assets                     (63)        325      (194)

 Total assets less current liabilities               1,846      4,261      2,028

 Creditors: amounts falling due after more than      (429)      (713)      (619)
 one year                                                                       

 Provisions for liabilities and charges              (322)          -      (449)
                                                                                 
 Net assets                                          1,095      3,548        960
                                                                                

 Capital and reserves                                                           
 Called - up share capital                           2,602      2,602      2,602
 Share premium                                         270        270        270
 Profit and loss account                           (1,777)        679    (1,912)
 
 Shareholder's funds - Equity                        1,095      3,551        960

 Minority interests                                      -        (3)          -

 Capital employed                                    1,095      3,548        960


Notes:


1.        The financial information in this statement does not constitute
statutory accounts. The financial information in respect of the year ended 31
January 2003 has been extracted from the statutory accounts which have been
filed with the Registrar of Companies.  The auditors' report on those accounts
was unqualified and did not contain any statement under Section 237 of the
Companies Act 1985.


2.        The interim financial information has been prepared on the basis of
the accounting policies set out in the Group's statutory accounts for the year
ended 31 January 2003.  Fixed annual charges are apportioned to the interim
period on the basis of time elapsed.  Other expenses are accrued in accordance
with the same principles used in the preparation of the annual accounts.



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