Checkit Regulatory News (CKT)

28 July 2016

Elektron Technology plc

(AIM: EKT, "Elektron" or "the Company" or the "Group")

Trading Update

Ahead of its Annual General Meeting on Thursday 28th July 2016, Elektron Technology plc, the global technology group, provides an update on recent trading.

As already announced at the time of the full year results revenues in the six months ending 31 July 2016 are expected to be lower than those for the same period last year. The Group continues to experience declines in markets for some of its legacy products. Elektron remains committed to its twin strategies of delivering efficiency and productivity improvements in its established businesses and investing in new product development to generate future growth.

Also as previously stated, in the current financial year investment in new product development as well as scale up costs associated with Checkit are expected to absorb much of the cash flow from the established businesses. The Checkit development programme remains on track. The new generation Automated Monitoring module was fully launched towards the end of the first half of the year and a further Checkit solution for SMEs will be launched in the second half.

Group order intake has, until recently, been in line with expectations with the Group's book to bill ratio being 1.04:1 for the current year to date. The Group experienced a drop in orders both immediately before and after the Brexit vote. As a response to the effect on input prices as a result of the drop in sterling, Elektron took action to increase the vast majority of sterling based output prices. In addition the Group is implementing further cost saving initiatives. The Board remains cautious due to the current high level of uncertainty.

Following the previously announced sale of Agar Scientific for initial proceeds of £2.0 million, the Group net cash position is expected to be around £0.3m at 31 July 2016 compared to a net debt position of £1.6m as at 31 January 2016.

The Group expects to announce its results for the half year to 31 July 2016 on 22 September 2016.

John Wilson, Chief Executive of Elektron, said:

"Despite the current economic uncertainty, the Group continues to make progress in the delivery of new product development programmes in our growth brands, which the Board believes will significantly enhance shareholder value in the medium term."

For further information:

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

Notes to Editors

Elektron conceives, designs and markets innovative engineered products and services for businesses that connect, monitor and control

We have a multi skilled team of engineers, software and product line specialists based in Cambridge focused on the opportunities created by global trends in the following areas:

-- New waves of "aware" business applications: Checkit

-- Demand for ubiquitous power and data: Bulgin

-- Growth in high precision manufacture: Queensgate

In addition, Elektron owns a portfolio of well-established products and brands that provide cash flow as well as customer access and feedback. 

Forward looking statements

Statements contained in this trading statement are based on the knowledge and information available to the Company's directors at the date it was prepared and therefore the facts stated and views expressed may change after that date. By their nature, the statements concerning the risks and uncertainties facing the Company in this Statement involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. To the extent that this Statement contains any statement dealing with any time after the date of its preparation such statement is merely predictive and speculative as it relates to events and circumstances which are yet to occur. The Company undertakes no obligation to update these forward looking statements.