AGM Statement

RNS Number:9201H
Deltron Electronics PLC
25 February 2003

For Immediate Release                         25 February 2003



DELTRON ELECTRONICS plc


AGM Statement


It is still relatively early in our financial year, but if forced to question
whether we will meet market expectations for the year I would say, hopefully,
but it cannot be guaranteed at this stage. The reason for my rather ambiguous
stance is that market conditions have never been less clear.


Traditionally a good indicator for our current trading performance has been the
'book to bill' ratio which is currently running at over 1. Normally, this means
we are taking orders faster than we can deliver to the customer. Classically, it
means a growing market and good prospects. However, there has been a change in
the way customers operate which makes the significance of this ratio less
obvious.


Customers are ordering products, often in large quantities, but are calling them
off in smaller numbers than normal. Deltron therefore has good clarity of order
book which remains at two and a half months, but is effectively operating as the
stores service for some of our customers. In uncertain times customers are
understandably risk averse. There is also some price pressure, which has pushed
down margins by about 1%. Neither of these factors represents dramatic changes,
but they mean we have to run faster for the same result.  Also, across Europe
the performance of our businesses differ.


Some highly-respected global forecasters have predicted that our industry will
enjoy double digit growth later this calendar year. We are more circumspect and
conservative at Deltron. Certainly, we operate in a cyclical sector and upturns
can be very sharp and steep, but predicting when they will occur is not so easy.


I don't need to elaborate on the unpredictability added by the prospective war
in Iraq.


To summarise: Book to bill is encouraging, but a less certain predictor than
before but as usual we are very second half biased and therefore it will not be
until the latter part of our financial year before the ambiguity surrounding our
expectations is likely to lift.


Deltron remains a robust business with a strong European network servicing its
niche electromechanical market. Operational gearing ensures we should gain
rapidly from any economic upswing. Tight cost controls ensures we have a
resilient group. We would all like a clearer picture with more certainty about
our prospects.  However, I remain confident that the Deltron pan-European and
franchise acquisition model (which we believe is currently winning market share)
enables the company to develop strongly as markets improve.


Contacts:


Deltron Electronics plc                         01638 561156
Christopher Sawyer, Chief Executive

Buchanan Communications                         020 7466 5000
Bobbie Swanson




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