LONDON (Alliance News) - Elektron Technology PLC said Thursday that revenue in its first half is expected to be marginally lower than in the previous year, as it continues to see declines in markets for some of its legacy products.
However, for the half year to end-July trading for the company's established business is expected to show a "significant improvement" over the previous year.
In a statement ahead of its annual general meeting, the company said its overall performance, including scale up costs associated with the development of its food safety monitoring system Checkit, will meet its expectations for the first half. It is investing in and scaling up Checkit, and said the costs associated with this is expected to absorb "much of the cash flow from the established businesses."
"These results further demonstrate the progress we have made during the last 18 months with strong cash generation in the first half of the year enabling us to invest in next generation Checkit product development and associated scale up costs," said Chief Executive Officer John Wilson in a statement.
Shares in Elektron are trading down 5.5% at 6.50 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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