Checkit Regulatory News (CKT)

Elektron Technology plc

AGM statement

Elektron Technology plc (AIM: EKT, "Elektron" or the "Group"), the global technology group, announces that at its AGM later today, Chairman Keith Daley will make the following statement.

Orders and Sales in the four months ended 31 May 2013

"Demand for the Group's products remains encouraging, with order intake for continuing operations in the first four months of the financial year above management expectations and in line with the comparable period in the prior year.

However, sales are lagging behind orders due to production delays following two factory relocations, with year-to-date sales from continuing operations c11% lower than in the comparable period in the prior year. As a consequence, half year revenue and cashflow will be below expectations. The Group has also incurred unplanned exceptional costs in order to support production.

Recovery of the lag between orders received and sales shipped is expected in the second half of the current financial year, as manufacturing returns to historic levels of efficiency. The Board is focussed on ensuring that that this critical recovery is achieved, together with building on the improvements already made in the control of administrative overheads and working capital."

Strategic developments

"In addition to the disposal of Total Carbide Ltd for £2.4 million (including £1.23 million in cash) completed on 12 June 2013, the Group has discontinued sales under the Tinsley brand, with ophthalmic products now part of the Elektron Technology brand. Further non-core asset disposals are possible as the Group seeks to focus its resources on the products with the highest return on capital employed and growth potential.

Progress with new product development continues, with further launches scheduled for the second half of the year. The streamlining of operations has continued with the closure of small sites in China and the USA, as well as the Redhill factory in the UK. The Group also intends to exit its remaining manufacturing operations in China and to relocate activity from its factory in Yorkshire to its centre for high tech manufacturing in Torquay." 

The Group expects to announce its results for the half year to 31 July 2013 on 12 September 2013.

Enquiries:

Notes to Editors 

Elektron Technology is a global designer and manufacturer of precision engineered products which enable two of the most important technology areas of the always-on, networked economy: Connectivity and Instrumentation, Monitoring and Control ('IMC').

The Group has a broad portfolio of brands which are recognised leaders in their markets, playing a critical role in many industries from underwater construction to food preparation, semiconductor manufacture to emergency vehicle systems. The Group's products are sold worldwide to over 7,000 customers, around 100,000 end-users, and used in all seven continents and in space.

Elektron Technology is headquartered in Cambridge and traded on the AIM market of the London Stock Exchange.