LONDON (Alliance News) - Elektron Technology PLC Thursday said whilst it remains cautious, it has seen a reversal in its performance in the first two weeks of September, as the UK's referendum on its membership in the European Union hit its first half.
For the half year to the end of July the company reported a pretax loss of GBP800,000, widened from a pretax loss of GBP200,000 the prior year, as revenue declined to GBP17.9 million from GBP19.5 million.
Elektron said that, as it had previously flagged, it saw a drop in orders both immediately before and after the Brexit vote, particularly in its core Europe, the Middle East and Africa, which accounts for around two-thirds of turnover.
Additionally, it said it had seen lower sales from its Bulgin business due to a "number of atypical stocking orders" from distributors the prior year.
The company is focusing on investing in five of its businesses, whilst it has sold its Agar scientific business in May, and is in the process of divesting its four remaining businesses which it has deemed non-core.
Elektron had cash at the end of the half year of GBP500,000, compared to net debt of GBP2.1 million the prior year, following the sale.
"It is pleasing to report that, following the sale of Agar, the group has returned a net cash position for the first time in many years and that further improvements to the underlying performance of its established businesses has been delivered, in spite of reduced demand, enabling investment in new products to be maintained. The board believes this investment will lead to growth in the medium term," said Chief Executive John Wilson in a statement.
Shares in Elektron were untraded Thursday, having last closed at 6.76 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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