ELEKTRON TECHNOLOGY PLC Interim Results

Elektron Technology plc, the global technology based provider of engineered solutions, is pleased to announce its interim results for the six months ended 31 July 2011.
 
Highlights

• Sales up 67% to £34.4 million (H1 2010: £20.6 million)
• EBIT (pre non-recurring and special items) up 36% to £3.5 million (H1 2010: £2.6 million)
• Non-recurring and special items of £0.6 million largely relating to further streamlining of the business, amortisation of intangibles plus abortive acquisition costs
• Underlying earnings per share up 6% to 2.38p (2010: 2.25p*)
• Interim dividend up 8% to 0.27p (2010: 0.25p) payable on 14 December 2011
• The Group has a strong order book and raw material price increases have generally been successfully passed on

 
*Note re taxation: Reported eps for the first half of 2010/11 were 2.42p after a tax credit of 1.1%. However the tax rate on underlying earnings for full year 2010/11 was 19.2% following the utilisation during the year of certain tax losses brought forward. Underlying eps have been calculated on profits adjusted for non-recurring and special items, using the full year tax rate of 19.2% in 2010/11 and an estimated tax rate of 24% for 2011/12.
 
Keith Daley, Chairman of Elektron Technology plc commented: “The Group has enjoyed another strong six month period, continuing the trend of the past two years. Sales have improved strongly, largely as a result of the Hartest acquisition, and favourable changes in the sales mix have helped increase gross margins.
 
“Current indicators show a relatively favourable picture. Price increases have generally allowed the Group to claw back increases in raw material costs and the Group has a strong order book, although this typically gives only 8 weeks’ visibility of sales at any time.  Orders for the brands with mature products and businesses have generally trended flat to slightly lower and sales to the public sector have been weak. However, we are pleased to report that these factors have so far been more than counterbalanced by growth in the brands with newer products such as Carnation and Henson and by expansion into overseas territories.
 
“The Group continues to invest in key areas of the business to enable it to grow to the next level.”