DSN.L Regulatory News (DSN)

20 May 2005 16:50

Densitron Technologies PLC20 May 2005 The directors of Densitron Technologies Plc have noted the significant fall inthe price of the company's shares following yesterday's announcement regardingthe postponement of the AGM of the company. With reference to this announcement the board wishes to make the followingclarifications: 1. The company continues to enjoy a good level of support from its banks, based on their longstanding relationship with the company. Our principal lenders have confirmed their support for the company over the long term. 2. As at May 19th, the unaudited financial net debt of the group is approximately £2.2m. Densitron has readily available cash of well in excess of £1m. Banking facilities are today approx. £6.2m. With NAV estimated at £7.5m the group's gearing is today approx. 30% and this would obviously decrease if the company were to choose to dispose of some or all of its non core assets, see below. 3. Densitron has significant assets in its shares in VBest and freehold land in Blackheath, London. These assets are carried in the balance sheet at approximately £6.4m and £0.3m respectively. 4. Although actual sales in the 1st Quarter have been below our internal budget, order intake has been positive and the outlook for the near future and beyond looks positive. The group has an excellent product line operating in growing markets supported by a highly focused and competent team. The board believes that this combination should provide an excellent opportunity to deliver satisfactory returns to shareholders in the medium to long term. 5. As and when the company chooses to release cash from its assets, it is Densitron's intention to pursue an opportunistic acquisition program adding volume to the existing infrastructure of the group and also to consider the return of cash to shareholders. 6. With immediate effect Mr Ben Merrett has resigned as Chairman and director of the company. The directors have invited Mr Ralph Baber to join the board as interim non-executive chairman. The search process has already been launched for a long-term chairman and or a CEO of the company. For further details please contact the following Chris Roberts/Andrew Tan Hansard Communications Ltd 020 7245 1100 Rob Smith Densitron Technologies plc 01959 542000 This information is provided by RNS The company news service from the London Stock Exchange