Elektron Technology expects to report 13% increase in sales on strong order book conversion

Writer, Stock Market Wire
Tuesday, February 5, 2019 - 10:07

Elektron Technology Group said Tuesday it expected to report a 13% increase in annual revenue from a year earlier amid strong growth in the second half of the year as it ramped up the conversion of its first-half order book to sales revenue from its Bulgin connections business.

For the financial year ended 31 January 2019, the company expected to report revenue from continuing operations of £33.7m, a 13% increase on last year's £29.8m.

Revenue in the second half of the year of £17.8m was substantially stronger than the first half's £15.9m as a result of the conversion of its bulgin segment's strong first-half order book to sales revenue, the company said.

'Bulgin ended the period with both sales and orders significantly ahead of the prior year driven by  the continued successful implementation of Bulgin's high margin product growth strategy, aided by operational gearing and in-house capacity improvements,' it added.

Total orders were expected to grow 7% to £34.3 from a year earlier.

The order book had continued strongly into the new financial year and first-quarter sales are expected to set a new record, the company said.

'Whilst the board is clearly aware of the current macro-economic uncertainty, and hence expresses some caution going forward, it expects the strong momentum seen during the year to continue across the Group's businesses and, to trade at record levels for the period of current visibility through its first quarter,' Elektron Technology said.