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Hardware & electrical equipment

Elektron’s profits rise on reduced revenues

The technology firm saw operating profits jump 80%, despite seeing a slight dip in revenues

Global technology group Elektron Technology PLC (LON:EKT) reported an 80% rise in operating profits to £0.9mln in 2015, up from £0.5mln the year before, despite a fall in revenues.

Revenues for the year to 31 January stood at £43.3mln, down from the £44.4mln posted a year earlier.

“These results…demonstrate the further progress we have made,” said chief executive John Wilson.

“We have continued to improve current business performance, allowing investment to establish a high growth portfolio of brands for the long-term.”

The group says its strategy remains to maximise the cash-flow from its seven mature, lower-growth businesses and invest in products “capable of achieving significant growth” over the medium-term.

One of those products, Checkit, racked up losses of £2.2mln, which represented the costs incurred to support the development of the task management software brand.

Elektron added that the lower sales for the current financial compared to the year before were in line with the board’s expectations and sales will be lower again this year.

Offsetting this again will be continued improvements in margins and other efficiency gains, though Checkit will continue to receive significant investment throughout 2016.

Shares were unchanged at 6.38p.

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