Elektron revenues fall

Elektron Technology said group revenue from continuing operations for the year to the end of January was approximately £34.5m (unaudited) compared with £35.5m (on a like-for-like basis) for the previous year.

Elektron said trading in the second half of the year on continuing operations showed some recovery from the slowdown in the first half.

Revenue from continuing operations in the second half was £17.9m (unaudited) (2016: £17.7m) compared with £16.6m (unaudited) for the first half.

Underlying trading performance from continuing operations benefited from the improved mix of sales and further cost savings to offset the impact of the overall fall of £1m in sales when compared to the previous financial year.

An update said: "As announced on 8 December 2016, the group proposes to close its Torquay site in August of this year at a cost of approximately £0.8m, for which the group has made a full provision at 31 January 2017.

"During the year Bulgin successfully rolled out its 4000 series through its distribution channel and will launch its new 'M-series' connector series during the first quarter, followed by a number of other new products during the course of the year.

"Further investment in new products has been made in Queensgate to demonstrate the capability of its technology and widen its accessible market size (planned for release in late spring of 2017).

"Checkit launched two new products in the second half of the year being the next generation Checkit Automated Monitoring system and the Checkit Solo Work Management system for SMEs.

"The interest from the food sector remains strong with a number of pilots under way and a major facilities management company signing up at a number of sites.

"Checkit is now operational across a number of UK sites across a diverse customer base, ranging from food manufacturing plants to high end restaurants.

"Elektron Eye Technology continues to grow its ophthalmic market share and will show a fifth consecutive year of organic sales growth, following investment and phased launch of its new product suite.

"Further product enhancements and functionality are planned in the current year."

Looking ahead, the group said the board continues to be cautious in its outlook due to macro-economic conditions and continued sales order visibility of 5-7 weeks.

It said that in the current financial year the group would continue to pursue its rationalisation programme and aimed to conclude the sale of Digitron and Titman Tip Tools.

It added: "Once these businesses have been disposed of, Elektron will be in a position to target a return to growth in sales across each of the remaining businesses.

"The group plans to maintain its focus on new product development and will invest the excess of the cash generated from its operations in FY18 in order to grow and maintain the momentum in the established brands, fledgling growth brands and in completing the proposed site consolidation."

Chief executive John Wilson said: "The sale of low growth and non-core businesses has enabled the Group to not only return to a net cash position for the first time in many years but has enabled greater focus of management time on the areas of the business targeted for growth.

"Further simplification is planned for the current financial year creating a more focussed group with greater growth opportunities. We shall maintain investment in new product development."