Elektron Technology : Trading update

24 November 2014

Elektron Technology plc

Third quarter trading update

Elektron Technology plc (AIM: EKT, "Elektron" or the "Group"), the global technology group, provides an update on recent trading.

The Group is continuing to perform in line with the Board's expectations. Group sales for the third quarter from continuing operations amounted to £11.5m (2013: £11.8m) taking year to date sales to £33.6m (2013: £34.4m) with sales demand tracking the trend of the first half of the year. As expected the Group has seen some weakening in demand from its EMEA Connectivity distributor base due to difficult economic conditions and high stock levels. Conversely Instrumentation Monitoring and Control ("IMC") demand strengthened during the third quarter. The overdue sales backlog at 31 October had been lowered to £0.7 million (31 July 2014: £1.0 million; 31 January 2014: £2.1 million). There were no operating or financing related exceptional charges in the third quarter.

Net debt at 31 October was £2.7 million (31 July 2014: £4.7 million; 31 January 2014: £8.0 million).

The Group has begun to accelerate investment in key new product development programmes, in particular relating to its Checkit brand, with a number of strategic technical appointments complemented by outsourced development. Consequently the Group expects debt to rise in the final quarter but still be substantially below the half year position.

The Group continues to focus on maximising the performance of its existing portfolio of brands in the short term whilst developing and launching innovative new products to enable growth in the medium and longer term.

As announced at the half year results in September, the Board remains of the view that the Group's trading performance in the second half of the year will be similar to the first half.  

John Wilson,Chief Executive Officer of Elektron said:

"The Group's delivery of a satisfactory performance in the third quarter is confirmation that our strategy remains on track. The Group is cash generative and we are placing considerable focus on using the funds raised earlier in the year to invest and execute our longer term strategy of building a high growth portfolio of brands through the introduction of best-in-class innovative products to the market." 

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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. 

Forward looking statements

Statements contained in this 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.