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8 Aug 2008 16:05
DENSITRON TECHNOLOGIES PLC
("Densitron" or the "Company")
AGM Statement
At the AGM held today at 3pm Ralph Baber, Interim Chairman, made the following statement.
This is my last trading update for the Company and I am delighted with the progress that has been made during my tenure as Chairman.
We have covered in the Annual Report the actions that have been taken over the last three years to rationalize the business into a focused trading division and two investments and I would like in this update to give a summary of the last 6 months.
Operations
The displays business has performed very well in the first half of the year and it is expected that trading for the 6 months to 30 June 2008 will be ahead of the Company's internal budgets and will show orders of ‚£10.1m, representing an increase of 33% over the second half of 2007 and 16% on the first half of 2007. Sales are expected to be ‚£8.3m representing an increase of 18.5% on both the first and second halves of 2007.
The order book has grown in the 6 months to 30 June 2008 by ‚£1.6m to approximately ‚£9.0m, an increase of 22% over December 2007 and the pipeline continues to grow.
During the six months there have been notable order wins and two which particularly stand out are:
> A contract from an existing long standing customer of ‚£1.03m for the provision of a complete product solution comprising LCD, motor and PCB, housed in a range of different colour plastics. The Company supplies a range of products to this customer including air freshening, sanitizing and feminine hygiene products.
> A multi-million euro contract with a leading manufacturer of industrial telecommunications equipment in Germany. The product is a low power, ultra thin, high contrast, extra wide viewing angle display, using Densitron's new range of OLED displays. The contract is valued at ¢â€š¬600k per annum with the first two years already scheduled for delivery. The typical life span of this type of product is 7/8 years.
Further details on these order wins are discussed in a separate press release and on the Company's web-site.
Despite the current economic conditions the markets in which the Company operates remain robust. The parts of the business that have caused issues over the last few years are now showing significant progress and with the range of products that the Company now has and the quality of the personnel in place, the outlook for the second half of the year remains positive.
Land at Blackheath
Following the disposal of part of the land the Company owned at Blackheath, work has commenced on putting an application for planning together. We are looking to submit these plans in the second half of the year. Shareholders should be aware that it is unlikely that planning will be granted immediately since the land is currently designated as Metropolitan Open Land. The expectation is that gaining the necessary permissions for development will take 2-3 years.
Evervision Electronics Limited
Evervision, the Company's investment in a Taiwanese display manufacturer, is performing well against its operating budget for the first 6 months of 2008. It remains significantly cash rich despite major investment in production lines in the first half of the year. We continue to work with the management to improve the position further in order to provide a return on the Company's investment.
Outlook
Your Company has a committed and able executive team that will continue to deliver results. It has been my privilege to work with them and for Densitron. We have a strategy that is working which is demonstrated by the level of orders being booked and the sales being made. The Board believes that the market capitalisation of Densitron does not reflect the underlying asset value and is continuing to work to improve the return from both the operating activities and investments.
All resolutions were passed at the meeting.
For further enquiries:
Tim Pearson, Group Finance Director Densitron Technologies plc Tel: 0207 648 4200 John Wakefield / Simon Moynagh Blue Oar Securities Plc Tel: 0117 933 0020
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