Elektron Technology : Derivative Claim - Further Update

28 January 2015

Elektron Technology plc

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

Derivative Claim - Further Update

In its 2014 Annual Report the Company disclosed derivative litigation brought by a shareholder, Mr Bridge, who holds at the date of this announcement 1.83 % of the Company's ordinary shares.

As reported by the Company in its update on 2 October 2014, at the last hearing on 1 October 2014 the Court made an Order ("the Order") giving directions for the management of the claim and for a further directions hearing ("the hearing") to take place. That hearing was held on 26 January 2015 in the High Court in London.

Mr Bridge did not attend the hearing.  Legal representatives of the Company and of the directors did attend the hearing. 

At the hearing the Court recorded that:

i.    Mr Bridge had not sought to engage in discussions to enable the parties to consider alternative dispute resolution, as provided in the Order;

ii.    Mr Bridge had not chosen to serve any amended Particulars of Claim within the time period prescribed by the Order;

iii.   Mr Bridge had not sought to agree directions, as required by the Order, to enable the proceedings to get swiftly to a hearing at which the Court could determine whether the claim against the directors should be allowed to continue; and

iv.   Mr Bridge had not produced any sufficient reason for not attending the hearing of 26 January 2015, at least by telephone (as the Company had indicated to him was a possibility).

The Judge noted that Mr Bridge's conduct in the run-up to the hearing bore all the hallmarks of the opportunistic and tactical approach that he had found permeated Mr Bridge's conduct before the 1 October 2014 hearing.

The resulting Order from the hearing was:

1.   The Defendants be given permission to file and serve updating evidence limited to the performance of the Company and the attitude of the Company's non-party Directors to Mr Bridge's derivative claim;

2.   No further evidence be permitted without the prior permission of the Court;

3.   The hearing of the adjourned application for permission to continue the claim to take place on 16 and 17 June 2015 in the High Court in Liverpool; and 

4.   The Court made clear that it would consider whether Mr Bridge should be entitled to an indemnity for his costs of the proceedings from the Company (an order that he is seeking) after, and if, the Court gives permission for the action to continue.

Further updates will be provided in due course.

Enquiries:

Notes to Editors 

Elektron conceives designs and markets innovative engineered products and services for businesses at its technology hub in Cambridge. It has a multi skilled team of engineers and product line specialists focused on the opportunities created by disruptive global trends in the following areas: 

·      Demand for ubiquitous power and data: Connectivity Solutions

·      Growth in high precision manufacture: Nano-positioning

·      Healthcare for the ageing population: Ophthalmology

·      Connected customer experiences and service delivery: E-Commerce and E-Service  

In addition it owns a portfolio of well-established products and brands which provide customer access and feedback. 

Elektron Technology is headquartered in Cambridge and its shares are admitted to trading on the AIM market of the London Stock Exchange.