LONDON (Alliance News) - Elektron Technology PLC on Thursday said it returned to profitability in its 2018 financial year, helped by "strong" growth in its Bulgin and Checkit divisions.
The connection, monitoring and control products manufacturer posted a pretax profit of GBP2.7 million for the year to the end of January compared with GBP600,000 loss reported the year before, as revenue rose 11% to GBP29.8 million from GBP26.8 million.
Elektron saw the positive impact of GBP500,000 foreign currency, it said. Excluding that, revenue grew 9%, driven by a 11% increase in its connectors and switches firm Bulgin due to the planned significant initiatives with its key distributors.
Revenue from internet of things technology unit Checkit also increased 67% year-on-year to GBP500,000 from GBP300,000.
However, Elektron Eye technology sales fell to GBP2.0 million from GBP2.4 million the prior year, as a result of distributor over stocking.
The company said it noted a recovery in the post period, following changes in management and the termination of a significant exclusive US based distributorship.
During the financial year, Elektron spent GBP2.9 million on product development and sustaining engineering, down from GBP3.2 million it invested the year earlier.
Looking ahead, the company said that it expects Bulgin's performance to remain resilient as the current order book will translate to a strong first half sales performance. However, Elektron said it is cautious around the potential global economic uncertainty in the second half.
"The financial results for 2018 reflect a year of strong organic growth in Bulgin and a growing momentum in Checkit," said Chief Financial Officer Andy Weatherstone.
"The group will continue its investment in growth opportunities, in particular with Checkit," added Chief Executive John Wilson.
Shares in Elektron were trading 1.1% lower at 27.70 pence per share on Thursday.