19 April 2012 – AGM statement
At today’s AGM, the company will confirm that the slowdown in the Electronic Manufacturing Services business, referred to in the annual results announcement, is expected to continue for the rest of the year although the company is focused on phasing out low margin legacy contracts as it tries to improve the overall quality of the business. The Power business, however, has had a good start to the year and continues to show strong growth. A new distribution agreement has been signed with an Asian manufacturer of power supplies to complement the core custom designed product offering. Progress has been made in reducing purchasing costs and operational improvements and these will deliver benefits in the second half and beyond. Although first half results are likely to be lower than last year this was already expected and trading should improve thereafter. The shares remain a BUY.