REG - Elektron Technology - Trading Update <Origin Href="QuoteRef">EKT.L</Origin>

CheckitAnnouncement

10/11/2015 07:01

RNS Number : 1029F
Elektron Technology PLC
10 November 2015
Elektron Technology plc
(AIM: EKT, "Elektron" or the "Company" or the "Group")
Trading update and launch of new product
Elektron Technology plc , the global technology group, provides an update on third quarter trading.
Trading has continued the pattern of the first half of the financial year. Sales of products from brands in which the Group continues to invest strategically through new product development, namely Bulgin, Queensgate and Ophthalmic, are showing growth over the prior year. Bulgin is showing modest growth while Queensgate and Ophthalmic are in aggregate showing around 50% growth against prior year and now represent around 7.0% of total Group sales. The remaining brands that still account for a majority of the Group's sales are in low growth or declining markets, are experiencing weak demand and continue to track at levels below last year. This is expected to continue through the final quarter of the year. The Group is intensifying its cost cutting measures as a result.
The higher margin sales of products from invested brands, coupled with operational and overhead improvements implemented during the last 18 months, lead the Board to expect that the full year trading performance will be ahead of last year for existing businesses excluding Checkit which is effectively a start-up and is accounted for separately.
The Board is pleased to confirm that the Checkit Work Management launch was on time and, despite the scale and complexity of the development, broadly in line with estimated development costs. The Group remains on track to launch a significant further enhancement to Checkit's product offering early next year.
Elektron remains committed to its twin strategies of delivering efficiency and productivity improvements in its established businesses and investing in new product development to generate future growth.
Group net debt was approximately 1.5m at 31 October (31 July 2015: 2.1m; 31 January 2015: 2.7m; 31 October 2014: 2.7m). It is anticipated that given the traditional profile of sales, debt levels are unlikely to fall further in the last quarter and may show a slight rise due to working capital movements. The Board is particularly pleased to note that the Group continues both to reduce debt at the same time as investing in new products.
John Wilson, Chief Executive of Elektron, said:
"Although we are somewhat cautious about the trading outlook given current market conditions, performance has so far held up well. We were greatly encouraged by the market reaction to the new Checkit Work Management system at its launch a few weeks ago. The task now is to convert the strong interest into orders. We expect to announce further new product launches shortly."
Forfurther information:
Elektron Technologywww.elektron-technology.com
+44 (0)1223 371 000
John Wilson - Chief Executive Officer 
Andy Weatherstone - Chief Financial Officer

finnCap (Nominated Adviser and Broker)
+44 (0)20 7220 0500
Ed Frisby/Scott Mathieson (Corporate Finance)

Malar Velaigam (Corporate Broking)

Notes to Editors
Elektron conceives, designs and markets innovative engineered products and services for businesses that connect, monitor and control
We have a multi skilled team of engineers, software and product line specialists based in Cambridge focused on the opportunities created by global trends in the following areas:
 -- New waves of "aware" business applications: Checkit
 -- Demand for ubiquitous power and data: Bulgin
 -- Growth in high precision manufacture: Queensgate
In addition, Elektron owns a portfolio of well-established products and brands that provide cash flow as well as customer access and feedback
Forward looking statements
Statements contained in this trading 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.

This information is provided by RNS
The company news service from the London Stock Exchange
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