Elektron Technology PLC Trading Statement (3058V)

TIDMEKT

RNS Number : 3058V

Elektron Technology PLC

02 November 2017

Elektron Technology plc

("Elektron", the "Group" or the "Company")

Trading Update

Elektron Technology plc (AIM: EKT), the global technology group, is pleased to provide an update on trading for the third quarter ended 31 October 2017.

Sales

Group trading was strong in Q3 with sales increasing 34% compared to the same period last year to GBP8.6m (2017: GBP6.4m). Year to date sales have increased by 15% to GBP22.9m (2017: GBP19.9m).

Bulgin achieved record quarterly sales of GBP7.8m in Q3, 37% higher than the same period last year (2017: GBP5.7m) following successful manufacturing scale-up to convert the unprecedented order demand in H1 into sales. The board expects that Bulgin sales will revert to more normal levels through Q4.

 
    Sales GBPm           Unaudited          Unaudited 
------------------ 
                     Q3 2018   Q3 2017    YTD    YTD 2017 
                                          2018 
------------------  --------  --------  ------  --------- 
      Bulgin           7.8       5.7     20.3      17.4 
  IMC (Queensgate 
    and Elektron 
  Eye Technology)      0.7       0.7      2.3      2.3 
      Checkit          0.1      <0.1      0.3      0.2 
       Total           8.6       6.4      22.9     19.9 
 

Orders

Group order intake remains well ahead of prior year, with all business segments demonstrating growth.

Bulgin and IMC orders are both 20% above prior year levels year to date.

Checkit has continued to build recurring revenue streams and total contracted annual recurring revenue (including forthcoming contracted installations) now stands at GBP0.7m, compared with GBP0.3m at the same time last year (+133%).

Cash

Group net cash was approximately GBP3.0m at 31 October 2017 (31 July 2017: GBP2.0m; 31 January 2017: GBP1.0m) following the initial proceeds from the Sheen Instruments disposal of GBP1.1m in October. The net cash position has also been impacted by investment in working capital of approximately GBP0.4m as a result of the strong trading performance in this quarter.

John Wilson, Chief Executive Officer of Elektron, said:

"Q3 trading has been strong. The Board now expects full year performance to be ahead of its previous expectations."

Enquiries:

 
 
   Elektron Technology plc               +44 (0) 1223 
   www.elektron-technology.com                371 000 
 John Wilson - Chief Executive 
  Officer 
 Andy Weatherstone - Chief Financial 
  Officer & Company Secretary 
 
 finnCap (Nominated Adviser &               +44 (0)20 
  Broker)                                   7220 0500 
 Ed Frisby / Scott Mathieson - 
  Corporate Finance 
 Abigail Wayne - Corporate Broking 
 
 

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

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:

- Demand for ubiquitous power and data: Bulgin

- New waves of "aware" business applications: Checkit

- The effect of ageing on sight: Elektron Eye Technology

- Growth in high precision manufacture: Queensgate

Cautionary statement

This financial information has been prepared only for the shareholders of Elektron as a whole and its sole purpose and use is to assist shareholders to exercise their governance rights. Elektron and its Directors and employees are not responsible for any other purpose or use or to any other person in relation to this report.

The report contains indications of likely future developments and other forward-looking statements that are subject to risk factors associated with, among other things, the economic and business circumstances occurring from time to time in the countries, sectors and business segments in which the Group operates. Key risks and their mitigation have not changed materially in the period from those disclosed on pages 12 to 14 of the annual financial statements for the year ended 31 January 2017.

These and other factors could adversely affect the Group's results, strategy and prospects. Forward-looking statements involve risks, uncertainties and assumptions. They relate to events and/or depend on circumstances in the future which could cause actual results and outcomes to differ materially from those currently anticipated. No obligation is assumed to update any forward-looking statements, whether as a result of new information, future events or otherwise.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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November 02, 2017 03:00 ET (07:00 GMT)