Elektron Technology PLC Trading Statement (2486E)
February 08 2018 - 2:00AM
UK Regulatory
TIDMEKT
RNS Number : 2486E
Elektron Technology PLC
08 February 2018
Elektron Technology plc
(AIM: EKT, "Elektron" or the "Group")
Trading update
Elektron Technology plc, the global technology group, is pleased
to provide an update on trading for the financial year ended 31
January 2018.
Group Trading
Group revenue from continuing operations for the full year is
expected to be approximately GBP30.5m (unaudited) a 10.9% increase
compared with GBP27.5m (on a like for like basis) for the previous
year, returning the business to growth. Trading in the second half
of the year from continuing operations, was substantially stronger
than the first half as a result of the conversion of Bulgin's
strong H1 order book to sales revenue. Revenue from continuing
operations in the second half was GBP16.6m (unaudited) compared
with GBP13.9m (unaudited) in the first half. Underlying trading
performance from continuing operations benefitted from the
operational gearing effect of increased sales over the prior year,
improved Bulgin margins and efficiency improvements.
Sales
Sales from continuing operations* GBPm Unaudited
---------------------------------------------- -----------------------------
FY 2018 FY 2017 % change
---------------------------------------------- -------- -------- ---------
Bulgin 27.3 24.1 +13.3%
---------------------------------------------- -------- -------- ---------
IMC (Queensgate and Elektron Eye Technology) 2.7 3.1 -12.9%
---------------------------------------------- -------- -------- ---------
Checkit 0.5 0.3 +66.7%
---------------------------------------------- -------- -------- ---------
Total Sales 30.5 27.5 +10.9%
---------------------------------------------- -------- -------- ---------
* Excludes businesses disposed of during the year
Orders
Orders received in the year* GBPm Unaudited
---------------------------------------------- ---------------------------
FY 2018 FY % change
2017
---------------------------------------------- -------- ------ ---------
Bulgin 29.3 25.7 +14.0%
---------------------------------------------- -------- ------ ---------
IMC (Queensgate and Elektron Eye Technology) 3.8 2.4 +58.3%
---------------------------------------------- -------- ------ ---------
Total Orders 33.1 28.1 +17.8%
---------------------------------------------- -------- ------ ---------
*Checkit is excluded from the above table owing to its recurring
revenue, subscription based model. Contracted recurring revenue
(comprising already installed systems and those scheduled to be
installed) as at 31 January 2018 was >GBP750k per annum (2017:
GBP270k), an increase of 178%.
Bulgin
Bulgin ended the period with both sales and orders significantly
ahead of the prior year. This was driven by the record level of
sales made in the third quarter, however sales in the last quarter
of the year returned to normalised levels. During the year Bulgin
successfully launched its new "M-series" connector generating in
excess of GBP500k of sales. Bulgin's fibre optic connector ranges
are set for launch during the first half of this year.
IMC (Queensgate and Elektron Eye Technology ("EET"))
The sales decline in IMC was primarily due to destocking in EET
in the early part of the year. Following a review of EET's
commercial strategy, progress has been made in developing the EET
global distribution channel. This is reflected in the full year
order position which is significantly ahead of the prior year.
During the year and as previously announced, EET acquired all IP
relating to its product suite. EET also received notification from
the US Food and Drug Administration (FDA) that the Henson 9000 is
not subject to premarket registration under its clearance
procedures thus paving the way for establishing a distribution
network in the US.
Owing to the long term and unpredictable nature of the projects
in which Queensgate operates, it was only able to deliver a modest
increase in revenues. It does however start the new financial year
with a significantly higher order book than a year ago.
Medical Service, a legacy element of the Agar Medical business
which was closed in 2016 and was involved in servicing of medical
devices, has now closed as planned. It was a marginal revenue and
brand contributor to the Group and its revenues are no longer to be
treated as part of continuing operations.
Checkit
Checkit continues to make progress with its real time operations
management product suite. In particular, the adoption of Checkit
has begun in two of the world's largest facilities management
companies that employ over 1 million people between them. In
addition, discussions are underway with several national and
multi-national food service chains.
Cash
Group net cash was approximately GBP5.1m at 31 January 2018 (31
January 2017: GBP1.0m,) driven by a strong trading performance and
the receipt of GBP1.9m cash proceeds from the Group's disposal
process (namely Sheen Instruments, Digitron and Titman Tip
Tools).
Outlook
The new financial year commenced with an order book in excess of
GBP9m (unaudited) compared with GBP5.9m (unaudited) in the prior
year.
The disposal programme has enabled management to focus solely on
the businesses which the Board believes offer greatest potential
for growth and realisation of significant shareholder value.
The Group plans to maintain its stated focus on new product
development and expects to further invest during FY19 in order to
continue to grow and maintain the momentum in the established and
fledgling growth businesses.
John Wilson, Chief Executive Officer of Elektron, said:
"The business has delivered on its stated objective of returning
the business to growth and starts the year with a strong order
book. The Group is well positioned to continue to capitalise on the
many opportunities available."
For further enquiries:
+44 (0) 1223
Elektron Technology plc 371 000
www.elektron-technology.com
John Wilson (Chief Executive Officer)
Andrew Weatherstone (Chief Financial
Officer & Company Secretary)
N+1 Singer (Nominated Adviser
& Broker)
Shaun Dobson / Jen Boorer (Corporate +44 (0) 20
Finance) 7496 3000
Michael Taylor (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 products and
services for business 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 growth in the following areas:
- Demand for ubiquitous power and data: Bulgin
- Real-time operations management using Internet of Things (IoT)
technology: Checkit
- Screening for the effects of ageing on sight: Elektron Eye
Technology
- High precision nano-scale manufacture: Queensgate
This information is provided by RNS
The company news service from the London Stock Exchange
END
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