DSN.L Regulatory News (DSN)

8 Aug 2005 17:12

Immediate Release: Monday 8th August 2005 Densitron Technologies Plc (`Densitron') AGM Statement and Update on Trading Densitron Technologies Plc is pleased to announce that all resolutions proposedat today's Annual General Meeting were duly passed.At the meeting the following update on trading was provided.The first six months of trading have been challenging across all areas of thebusiness and in particular for the public information display business. On ageographical basis our operations in Europe and Asia are marginally loss makingand in he USA are profitable on an operating level. Following the sale of theHitech Electronics Corporation (`Hitech') we will report a profit for the firstsix months of the year.The Group's profitability last year was in large underpinned by Hitech andfollowing the sale of the business we believe it will take some time before theGroup returns to profitability.Within the ongoing operations of the Group the Gaming computer businesscontinues to show potential and we have accordingly made further investment inthe business making appointments in technical, sales and operations. Inconjunction with this expansion of the business we have changed our developmentphilosophy and now seek to outsource a greater proportion of the board layout,procurement and assembly functions. We expect this to accelerate the rate ofproduct development reducing our lead times from 24months to 6months.The main thrust on growing sales will come from new computer board products,from exploiting existing display capabilities and from re-entering the railsector with Ferrograph ‚® product. Year to date orders are 10% ahead of salesand significant new development contracts for Bosch and a major gaming machinemanufacturer will underpin 2006 sales growth.The UK operations are now focused on Newcastle with group and certain sales andmarketing functions moving to London. The lease at Biggin Hill comes to an endshortly and no longer suits the requirements of the business. The London officewill be more accessible to customers and staff and will be more cost effective.Our relationship with our banks is good and we continue to enjoy their support.The VBest business has continued to see strong top line growth through the yearbut has been hindered with ongoing problems with quality and delivery. As suchit has been necessary to replace the CEO and CFO of the company andconsequently Robert Yeh, the Chairman has taken on a more executive role in thebusiness. Robert has subsequently appointed a new GM and CFO to the company andinitial feedback on their performance has been positive. To lend furtherassistance to the business of VBest and represent the interests of Densitronthe board have recommended the appointment of Henry Chui to the board of VBest.Henry has a long relationship with Densitron stretching over 25 years and iswell know by our former Chairman, Cliff Hardcastle, who has expressed hissupport for Henry's appointment.The land at Blackheath continues to be a game of patience as we wait for theindependent inspectors report to Greenwich Borough Council which affects thewhole redevelopment of the area.My assessment is that it will take some time before the group can return tooperating profit from its existing business. However, I am positive that profitcan be achieved as the Group is underpinned by a strong assets base and groupof very talented people and dedicated people.As a procedural note Ralph Baber resigned at the end of the AGM and wasre-appointed as Director and Chairman by the board. -Ends- For Further Information please contact:Ralph BaberDensitron Technologies PlcTel: 020 7256 3957Rob SmithDensitron Technologies PlcTel: 0195954200Andrew TanHansard CommunicationsTel: 020 7245 1100ENDDENSITRON TECHNOLOGIES PLC