REG - Elektron Technology - AGM Statement <Origin Href="QuoteRef">EKT.L</Origin>

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06/09/2014 22:41

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RNS Number : 7960N
Elektron Technology PLC
31 July 2014 
 
31 July 2014 
 
Elektron Technology plc 
 
(AIM: EKT, "Elektron" or "the Company" or the "Group") 
 
AGM Statement 
 
Chairman Keith Daley will make the following statement at Elektron's AGM later
today. 
 
"The  recent successful fundraise of £3.3m (before expenses) will allow us to
focus better on further improving trading performance, on delivering the
necessary returns from investment in new products and on optimising those from
existing products.  This will create the conditions for organic growth which
has eluded the business for several years. 
 
"Revenues in the six months ending 31 July 2014 excluding the effect of
disposals are expected to be at slightly lower than the same period last year,
mainly due to the strategic decision to rationalise the Group's low margin
factored products sold to the NHS. 
 
"As previously announced, there has been some destocking by Connectivity
customers, following substantial improvements during the last nine months to
the Group's on time delivery performance.  However, sales from new products
are increasingly offsetting the decline in the legacy portfolio and are
expected to be significantly ahead of the corresponding period last year. 
 
"The Group's trading performance has improved as a result of both selective
price increases and reductions in Selling, General & Administrative overheads
implemented in the second half of last financial year.  Operational
exceptional costs have now been eliminated, although the Interim Results will
include exceptional costs of approximately £0.8m to cover the fund raise,
renegotiation of bank facilities including debt advisory and the Strategic
Alternatives process  - all of which we successfully completed in the first
half. 
 
"The Group saw a significant cash inflow as a result of the fund raise,
improved working capital control and operating performance.   Net Debt on 31
July 2014 is expected to be below £5.0m compared with £8.0m at 31 January
2014." 
 
The Group expects to announce its results for the half year to 31 July 2014 on
11 September 2014. 
 
For further information: 
 
 Elektron Technology  www.elektron-technology.com                                  +44 (0) 1223 371 000  
 John Wilson - Chief Executive OfficerAndy Weatherstone - Chief Financial Officer                        
                                                                                                         
 finnCap (Nominated Adviser, Financial Adviser and Broker)                         +44 (0)20 7220 0500   
 Ed Frisby/Ben Thompson (Corporate Finance)                                                              
 Malar Velaigam (Corporate Broking)                                                                      
                                                                                                         
 Instinctif Partners                                                               +44 (0)20 7457 2020   
 Adrian Duffield/Kay Larsen                                                                              
 
 
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: 
 
·      New waves of "aware" business applications: Internet of Things 
 
·      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 AGM 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 AGM Statement involve uncertainty since future events and
circumstances can cause results and developments to differ materially from
those anticipated. To the extent that this AGM 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. 
 
This information is provided by RNS
The company news service from the London Stock Exchange