4th Aug 2006 15:00
Densitron Technologies PLC04 August 2006 Densitron Technologies plc AGM Statement The Company will announce its un-audited interim results for the 6 months to 30June 2006 by the end of August. It is expected that these results will show anincrease in sales on continuing operations, compared with the first half of2005, of 15.3% to £10.6 million and new order intake of £11.8 million up by 2.0%over the first half of 2005. Consequently our order book continues to grow. Progress continues to be made in each of the operating businesses. Densitron Display Solutions has performed well, especially in the US. Wereplaced the sales teams in both France and Germany in 2005 and both territorieshave shown improvement on the prior year. Our focus continues to be on bookingbusiness at good margins, where our unrivalled product knowledge and expertisecan add value. The division operated profitably in the 6 months to 30 June 2006and the outlook for this business is positive. Densitron Gaming has launched three new products this year; this hassignificantly broadened our market offering. The receipt of an order fromUnicum at the beginning of the year was a major coup, however, delays in newlegislation being passed in the important Russian market has meant thatshipments against this order are taking place later than originally forecast.Our effort is focused on increasing our customer base through sales andmarketing activities and the recent appointments in our sales team are startingto yield positive results. This continues to be a period of investment in thisdivision. We have development kits with a record number of customers which isan encouraging platform for the future profitability of this business. Densitron Ferrograph continues its drive to re-enter the rail market. In Julywe received a second contract from Network Rail, although we have seen adownturn in activity in the telecommunications market. Considerable effort hasbeen made to improve margins and reduce overheads and the division broke even inthe 6 months to 30 June 2006. Each of the operating businesses continue to make progress, there is anencouraging degree of positive momentum which should translate into shareholdervalue being created. Your board of directors continues to review and refine the strategy of the groupand believes that the market capitalisation of the company does not reflect theunderlying asset value of the business. The board will take the necessary stepsto improve the return from operating activities so that asset values arerecognised. Further non-core assets will be disposed of at an acceptable valuewhen appropriate. Enquiries: Densitron Technologies plc Ralph Baber, Chairman 0207 648 4200 Corporate Synergy Plc Ian Rice, Corporate Finance 0117 933 0020 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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