Elektron Technology – 15p

1 February 2013 – trading update

The group has issued a disappointing trading update for the year of 31 January revealing that sales in December and January were very disappointing, with the result that the group is expected to only break even in the second half.  The group has continued its investment in new products though as this is seen as a vital part of future strategy and, partly as a result of this, borrowings are expected to have risen to almost £6m at the year end (2012: £4.4m).  Clearly the group is operating in a challenging market and as it will take time for sales of new products to have an impact we maintain our recommendation of HOLD.

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