13th May 2014 14:48
LONDON (Alliance News) - Elektron Technology PLC Tuesday said it remains in discussions over its possible sale and traded in line with expectations during its first quarter.
The news comes after the electrical-components company announced in April that it was considering a possible sale of the company or a fund-raising to enhance shareholder value. It was also considering other options including the potential sale of non-core assets, or discussions to procure additional finance.
Elektron had previously been in discussions with its lender to vary certain conditions of its banking facility, as it saw new debt rise in the full year to January 31 following a "disappointing" financial performance.
On Tuesday, the company said it remains in discussions with a number of parties which may lead to the sale of the company and it continues to consider a number of other proposals.
Elektron also announced that it has successfully reduced its order backlog from a peak of GBP3.3 million last year to a normalised level of GBP1.0 million, but noted that it experienced a limited amount of destocking by customers impacting orders received in February for delivery in May.
The company said orders received in March and April were in line with expectations, and its trading performance for the first quarter ending April 30 is in line with its expectations.
It said net debt at April 30 was GBP7.6 million and it continues to meet all of its debt repayment obligations.
"Having identified significant issues, last year, resolute action was taken that has resulted in the recent improved operational performance the board expected," Chief Executive John Wilson said in a statement.
Elektron Technology shares were up 13% to 4.9625 pence, putting it in the top-five AIM ALL-Share risers on Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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