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The Markets
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Hardware & electrical equipment

Elektron Technology boosted as it confirms upgraded full year forecasts

The firm said revenues for the year ended January 31 were up 13% on a like-for-like basis at £33.7mln, with revenues in the second half being “substantially stronger” than the first

Elektron Technology PLC (LON:EKT) shares got a boost in early trading Tuesday after the group reaffirmed upgraded full-year forecasts from an update in November.

The firm, which develops connection, monitoring, and control systems, said revenues for the year ended 31 January were up 13% on a like-for-like basis at £33.7mln, with revenues in the second half being “substantially stronger” than the first at £17.8mln compared to £15.9mln as a result of a strong first half order book conversion from its Bulgin connections business.

READ: Elektron Technology shares rise as it expects full-year sales to be ahead of last year

Elektron’s three business segments all reported revenue growth in the year, with Bulgin rising 10% to £30.1mln while its eye monitoring tech division Elektron Eye Technology and operations management arm Checkit grew 30% to £2.6mln and 100% to £1mln respectively.

In the November update, the firm had said its results for the year would be “significantly ahead of market expectations”.

Total orders during the year had also increased 7% to £34.3mln, although Eye Technology suffered a 21% decline in orders to £2.2mln.

Elektron also ended the period with a cash balance of £10.1mln, up from £5.2mln in the prior year and despite a £300,000 investment to mitigate any supply chain issues caused by Brexit.

Looking forward, the company said it was “clearly aware of the current macro-economic uncertainty” including Brexit and the US-China trade war, and as such “expresses some caution going forward”.

However, the firm added that it expected the “strong momentum” from the year to continue across the business.

Shares were up 1.1% at 44.5p.

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