27 June 2013 – AGM statement
A rather mixed picture on trading has been presented by Elektron at its AGM today. Although sales orders for the four months to 31 May are ahead of expectations and at a similar level to last year, there has been a delay in the translation of orders into actual sales due to delays in production following two factory relocations. As a result, sales to date on continuing operations are down 11% compared to the same period last year. This will have an adverse effect on the interim results covering the six months to 31 July and the group has also incurred unplanned exceptional costs in order to support production. Recovery of the lag between between orders received and sales shipped is expected in the second half of the year.
The group is continuing its strategic development plan with the exit from its remaining manufacturing operations in China and the relocation of activity from its factory in Yorkshire to its centre for high tech manufacturing in Torquay. Although this statement is a bit disappointing, the group is making some progress now and we upgrade our recommendation to BUY.