DET Deltron Elec.

RNS Number:5364U
Deltron Electronics PLC
15 April 2002


For Immediate Release                                 15 April 2002



                            Deltron Electronics plc



                          ("Deltron" or "the Company")



TRADING UPDATE



The Board of Deltron, one of the leading electromechanical component providers
in Europe, has assessed it trading position following the completion of the
first six months of its financial year ended 31st March 2002.



At the Company's Annual General Meeting on 28th February, the Chairman, Paul
Gourmand indicated that "Current trading conditions remained tough" and that "
Our performance in the first half of the current financial year is expected to
be subdued reflecting market conditions".  Now the first half is complete, our
best estimate for the period is a pre-tax profit, before exceptionals,
restructuring and goodwill amortisation, which is unlikely to exceed £0.5
million.



In the AGM Statement, the Chairman indicated that "Deltron's ability to achieve
market expectations for the year was dependent on a strong recovery from April".
Whilst the recovery is still broadly expected within the industry, its timing
remains highly uncertain with no sign yet of its arrival.  Therefore the Board
feels it is sensible to remain cautious on trading prospects for the remainder
of the year.



Meanwhile, Deltron remains well positioned to benefit significantly from the
recovery when it comes.  Encouragingly, gross margins have been maintained
despite the subdued conditions.



Following the six acquisitions in 2001, Deltron has embarked on a process of
integration and rationalisation of the acquired companies. Additionally, in the
UK all manufacturing operations are being moved onto one dedicated site. The
costs of integration are currently being incurred and are expected to result in
an exceptional charge during the current financial year in the region of
£800,000.   The cost savings which we expect to be in the region of £1.5 million
per annum will not have a material impact on the financial results until the
following year.







For further information, please contact:


Buchanan Communications                           020 7466 5000

Tim Anderson/Bobbie Swanson







                      This information is provided by RNS
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