1st Nov 2018 10:35
LONDON (Alliance News) - Elektron Technology PLC said Thursday it expects annual results to be "significantly" ahead of expectations after its main unit delivered "record" third quarter sales and smaller divisions continued to grow strongly.
For the three months ended October, total revenue rose 13% to GBP9.9 million from GBP8.8 million the year prior.
Revenue performance was helped by a 13% jump in sales from its key Bulgin sealed electrical connectors unit to GBP8.8 million from GBP7.8 million the year before. This "record" quarterly sales figure followed the "successful manufacturing scale-up to convert the continued, unprecedented order demand seen in the first half into sales."
Elektron now expects Bulgin sales to be "significantly" ahead of its previous, upgraded expectations. The firm also expects Bulgin margins to widen to around 30% for the full year from 26.4% the year prior amid a focus on high margin products growth.
Its smaller eye screening business Elektron Eye Technology saw revenue rise by a third to GBP800,000 from GBP600,000 a year prior. Performance from this unit was also described as "significantly" ahead of expectations with the "strong" sales results expected to result in full-year profitability.
Its operations management software unit CheckIt saw revenue triple to GBP300,000 from GBP100,000 the year prior. Checkit is rolling out its new work management capability software, It has also been launched ahead of schedule in the US where sales teams and looking to establish the business.
Net cash rose to GBP8.5 million from GBP6.8 million three months earlier despite "modest" working capital investment in the quarter. This was after the "very strong" trading performance during the period. The firm, therefore, expects full year net cash to also be ahead of expectations.
"The group's third quarter performance has been exceptional," Elektron Chief Executive Officer John Wilson said. "The board now expects full year performance to be significantly ahead of market expectations."
Shares in Elektron were 17% higher at 42.10 pence on Thursday.