Interim Results

Elektron PLC
27 September 2004




Embargoed for release: 7.30 a.m. 27 September 2004


                                  ELEKTRON PLC

              Interim results for the period ended 31st July 2004



Elektron PLC ('Elektron'), the AIM quoted components manufacturer announces
results for the half-year ended 31st July 2004.

Key Points:


   • Turnover increased to £13 million (2003: £5.7 million)

   • Operating profits on continuing operations before goodwill release of
     £972,000 (2003: £214,000)

   • Operating profits include exceptional costs of £400,000 for the closure
     of assembly operations at Bulgin which are being transferred to Tunisia

   • Profit before taxation of £1,851,000 (2003: £201,000)

   • Earnings per share before goodwill release and exceptional items of 1.23p
     (2003: 0.42p)

   • Net borrowings reduced to £385,000 from £1,651,000 at 31 January 2004
     giving a net gearing on net tangible assets of 8%



For further information please contact:

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





Chairman's Statement


In the six months to 31 July 2004 the Elektron Group exceeded the profit targets
the Board set itself for the entire year following the Arcolectric acquisition.

The Group profit before taxation of £1,851,000 consists of £887,000 from
operations, £931,000 of negative goodwill release and £33,000 profit on disposal
of BP Purchasing.

The results include a provision of £400,000 for the closure of assembly
operations at the Bulgin Components factory, which are in the process of being
transferred to Arcolectric's factory in Tunisia. A further £125,000 of closure
costs are expected to be incurred by the time the transfer is completed around
the end of this financial year.

Following the disposal of BP Purchasing, Elektron is able to concentrate on its
two key operating businesses.

Bulgin designs and manufactures connectors, switches and other
electro-mechanical components for industrial markets.

Turnover of £4,859,000 returned operating profits of £462,000 before the
restructuring provision of £400,000 referred to above. In the full year to 31
January 2004 operating profits were £376,000 on sales of £7,931,000. The market
in the first half was extremely buoyant with orders up 14% on the comparative
period. Sales in the second half are not expected to match the levels of the
first half.

Arcolectric specialises in the manufacture of appliance switches, indicator
lights and fuseholders for consumer and industrial markets.

Turnover of £7,848,000 returned operating profits of £768,000. As stated in the
last Annual Report, the backlog of orders built up during its receivership prior
to acquisition has resulted in a disproportionate level of sales for the first
half compared to the normal level of ongoing business. Consequently we do not
expect this level of sales to continue in the light of Far East competition and
decreasing prices.

The market has been strong in the first half, particularly in the US where
industrial production has continued to increase but some customers are now
experiencing softness in some of their markets.

At both businesses we continue to focus on the significant cost reduction
opportunities afforded by Elektron's manufacturing facilities in Tunisia and
China whilst maximising the sales potential of the Arcolectric and Bulgin brands
in North America and elsewhere.

Gearing and Balance Sheet

At 31 July 2004, net gearing on net tangible assets was 8% compared with 36% at
the last year-end. Net borrowings reduced to £385,000 from £1,651,000 at the
start of the period.

Net tangible assets at the half-year increased 9% to £5,001,000 which equates to
6.6p per share.

The Group now has a strong balance sheet which will allow it to consider
selectively further acquisitions.



Earnings per share and dividends

Earnings per share before negative goodwill write backs and exceptional items
were 1.23p. Basic earnings per share after negative goodwill write backs and
exceptional items were 1.67p. The parent company, Elektron Plc, now has positive
reserves and a final dividend will be considered at the time of the final
results announcement in the light of trading at that time.



Outlook

The Board expects sales and profits in the second half of the financial year
will be lower than the first half as a result of the usual seasonal factors, but
the effect will be exaggerated this year by the additional sales arising from
the Arcolectric backlog at the start of the year. By how much is difficult to
indicate at this time, but it should be assumed that the exceptional results of
Arcolectric in the first half of the current year will not be repeated.

Against this background the Board will be relentless in the drive to reduce
costs, to seek new higher margin products and to increase market share.

Adrian Girling
Executive Chairman




                        Group Profit and Loss Account

Unaudited Interim Results to 31 July 2004

                                      Half year to   Half year to      Year to
                                           31 July        31 July   31 January
                                              2004           2003         2004
                                             £'000          £'000        £'000

Turnover - continuing operations            12,707          4,239        9,334
         - discontinued operations             333          1,457        2,649
                                           ---------      ---------    ---------
                                            13,040          5,696       11,983
                                           ---------      ---------    ---------

Operating profit/(loss) 
   - continuing operations                     972            214          812
   - discontinued operations                   (68)            40         (201)
   - negative goodwill release                 931              -        1,135
                                           ---------      ---------    ---------
                                             1,835            254        1,746

Profit/(loss) on disposal of
discontinued operations                         33              -          (47)
                                           ---------      ---------    ---------
Profit on ordinary activities before
interest                                     1,868            254        1,699

Net interest payable                           (17)           (53)         (94)
                                           ---------      ---------    ---------
Profit on ordinary activities before
taxation                                     1,851            201        1,605

Taxation on profit on ordinary
activities                                    (577)           (66)        (299)
                                           ---------      ---------    ---------
Profit on ordinary activities after
taxation                                     1,274            135        1,306

Dividends                                        -              -            -
                                           ---------      ---------    ---------
Transfer to reserves                         1,274            135        1,306
                                           ---------      ---------    ---------

Earnings per share - basic                    1.67p          0.26p        2.42p
                   - before exceptional 
                     items/negative
                     goodwill release         1.23p          0.42p        1.26p





                              Group Balance Sheet

Unaudited Interim Results at 31 July 2004

                                                31 July   31 July   31 January
                                                   2004      2003         2004
                                                  £'000     £'000        £'000
Fixed assets
Goodwill                                              -       328            -
Negative goodwill                                  (278)        -       (1,257)
Tangible assets                                   2,879     1,581        3,149
Investment in own shares                             20         -           20
                                                 --------  --------     --------
                                                  2,621     1,909        1,912
                                                 --------  --------     --------

Current assets
Stocks                                            2,618     1,200        2,605
Debtors                                           5,386     2,343        4,384
Cash at bank and in hand                          1,491        41        1,123
                                                 --------  --------     --------

                                                  9,495     3,584        8,112

Creditors: amounts falling due within
one year                                         (4,959)   (3,647)      (4,659)
                                                 --------  --------     --------

Net current assets/(liabilities)                  4,536       (63)       3,453
                                                 --------  --------     --------

Total assets less current liabilities             7,157     1,846        5,365

Creditors: amounts falling due after
more than one year                               (1,395)     (429)      (1,318)

Provisions for liabilities and charges           (1,039)     (322)        (708)
                                                 --------  --------     --------
Net assets                                        4,723     1,095        3,339
                                                 --------  --------     --------

Capital and reserves
Called - up share capital                         3,821     2,602        3,730
Share premium                                       244       270          235
Profit and loss account                             658    (1,777)        (626)
                                                 --------  --------     --------
Shareholder's funds                               4,723     1,095        3,339
                                                 --------  --------     --------


Notes:

1.       The financial information in this statement does not constitute
statutory accounts. The financial information in respect of the year ended 31
January 2004 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 2004. 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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