Unaudited Interim Results

Densitron Technologies plc

Unaudited Interim Results

Densitron Technologies plc ("Densitron" or "the Company" or "the Group") is pleased to announce its unaudited interim results for the six months ended 30th June 2012.

Highlights

·; Revenue decreased by 6.2% to £10.6m (2011: £11.3m).

·; Orders booked increased by 4.5% to £11.7m (2011: £11.2m).

·; Interim dividend declared of 0.2p per share (2011: 0.2p)

Financial Highlights on continuing operations

Enquiries:

Densitron Technologies plc

Grahame Falconer / Tim Pearson

Tel: 0207 648 4200

Westhouse Securities Limited

Tom Price

Tel: 020 7601 6100

Chairman's Statement

The first six months of 2012 have demonstrated the importance for the business to continue to evolve and grow. We have seen certain parts of the business continue to increase their market share while other parts have seen existing business mature and new business take longer to secure. The orders booked in the period have remained robust but the revenue generated is down on where we expected to be at the end of the first half of the year. However, new markets and new product introductions give optimism for the medium and long term future of the business while the order book and pipeline give confidence to the nearer term.

The orders booked in the first half of 2012 were £11.7m compared with £11.2m booked in the first half of 2011, a growth of 4.5%.

Revenue in the first half of the year was £10.6m compared to £11.3m in the first half of 2011, a fall of 6.2%. This was due to lower orders booked in the third quarter of 2011 and several significant orders anticipated to be booked and shipped in the first half of 2012 being delayed until later in the year. Gross profit achieved fell from £3.3m to £3.1m, a decrease of 6.1%.

As a result of the reduction in revenue during the first half of the year and the increase in overheads, which is partly due to the new office opened in India at the beginning of the year, the Group's profit from operations has fallen from £0.54m achieved in 2011 to £0.06m achieved in 2012. However, together with the strength of the pipeline and the continued growth in orders booked in July and August we are confident that the results for the full year will materially exceed those achieved in 2011 and we remain hopeful of achieving the market expectation for 2012.

Operational review

The Group's operations are primarily the design, development, marketing and selling of electronic displays.

European business - In terms of orders, revenue and gross profit, the European operations have had a disappointing first half of the year. Orders grew from £5.7m in 2011 to £5.8m in 2012, revenues fell from £5.9m in 2011 to £5.2m in 2012 and gross profit fell from £1.5m in 2011 to £1.4m in 2012. However, the European operations will show a significant return in the second half of the year from business that has already been booked and together with business that is forecast to be booked and shipped in the second half is expected to be ahead of the result achieved in 2011.

US Business - The US business has remained relatively flat compared with 2011. Orders booked in 2012 were £4.0m compared with £4.1m in 2011, revenues were £3.8m compared with £4.0m in 2011 and gross profit was £1.0m in 2012 compared with £1.1m in 2011.

Asian business - The Asian business is made up of Densitron Corporation of Japan and Densitron Display Taiwan and has continued to grow compared with 2011. Orders booked in 2012 were £1.9m compared with £1.4m in 2011, revenues were £1.6m compared with £1.4m in 2011 and gross profit was £0.7m compared with £0.7m in 2011.

Blackheath

This is the 1.25 acre strip of land in Blackheath, London, for which the Group is seeking planning permission.

We are continuing to explore the existing use rights on the site and are working on the reclassification of the site through the Local Development Framework. We will keep shareholders informed when there is further information.

Claim against the Company

We outlined in the 2011 Annual Report that the Company had been served with a writ in respect of unpaid rent relating to a property occupied by a former group company. We continue to defend the Company against this claim and have opened a dialogue on a without prejudice basis with the Plaintiff in an attempt to bring the matter to a conclusion. We will advise shareholders when there are further developments.

Dividend

The Board of Directors is pleased with the overall progress that the business is making and considers that, based on the expectation of the results in the second half the year, it is appropriate to make an interim dividend payment. Consequently, I am pleased to declare an interim dividend of 0.2p per share, which is the same as the interim dividend paid based on the results of the first half of 2011. The dividend will be paid to shareholders on the register on 14 September 2012. The Company's shares will trade 'Ex-dividend' on 12 September 2012 and the proposed payment date is 5 October 2012.

Outlook and strategy

I outlined in the 2011 Annual Report our strategy for the business

·; Increase in market share - we continue to work on increasing market share from our existing product offerings. While we have seen a dip in the revenues generated in the first half of 2012 the orders booked have grown and the opportunities being worked on and forecast to be booked in the second half continue to grow.

·; Geographical expansion of the business - we opened an office in India at the beginning of 2012 and I am pleased to report that, while we do not expect to generate significant levels of business this year due to the time it takes to develop a market and its opportunities, it is clearly a market in which we can operate successfully. We have already started to take development orders and this is the first stage in the business cycle. We would expect to see production orders during 2013.

·; Introduction of new products - We continue to work with our suppliers to ensure that we are able to offer our customers the widest range of products as possible to meet their requirements.

·; Creation of value by development of products and intellectual property - We are continuing to work on a number of projects to create intellectual property within the group. This is important for the development of the business as it will differentiate Densitron from its competitors and also secure margins in the highly competitive markets in which we operate. We have created our own range of displays and touch screens that are branded as Densitron. In addition the Group has created a suite of software to enable our customers to develop their own high quality graphics quickly and effectively and this will be launched at a major exhibition in Germany in November.

With the work that has been carried out and continues to be undertaken I am confident that the business is moving in the right direction. Developing new markets and introducing new products always take time so we knew that we would not see results from these initiatives immediately, but the indications are that they will stand the business in good stead to grow into 2013 and beyond.

Jan G Holmstrom

Chairman

31 August 2012

Unaudited Condensed Consolidated Income Statement

For the six months ended 30th June 2012

Unaudited Condensed Statement of Comprehensive Income

For the six months to 30th June 2012

Unaudited Condensed Consolidated Balance Sheet

As at 30th June 2012

Unaudited Condensed Statement of Changes in Shareholders Equity

For the 6 months to 30th June 2012

Unaudited Condensed Consolidated Cash Flow Statement

For the 6 months ended 30th June 2012

Notes to the Unaudited Condensed Financial Statements

For the six months ended 30th June 2012

1. General information

Densitron Technologies plc is a public limited company incorporated in the United Kingdom under the Companies Act 2006 (registration number 1962726).

The Company is domiciled in the United Kingdom and its registered address is 4th Floor, 72 Cannon Street, London, EC4N 6AE. The Company's Ordinary Shares are traded on the AIM Market of the London Stock Exchange. The Group's principal activities are the design, development and delivery of electronic display and display related technologies.

2. Basis of preparation

This unaudited consolidated interim financial information has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and Interpretations adopted for use in the European Union (collectively EU IFRSs). The principal accounting policies used in preparing the interim results are those it expects to apply in its financial statements for the year ended 31 December 2012 and are unchanged from those disclosed in the group's Annual Report for the year ended 31 December 2011.

The financial information for the six months ended 30 June 2012 and 30 June 2011 is unreviewed and unaudited and does not constitute the group's statutory financial statements for those periods. The comparative financial information for the full year ended 31 December 2011 has, however, been derived from the audited statutory financial statement for that period. A copy of those statutory financial statements has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498(2) - 498(3) of the Companies Act 2006.

The financial information in the Interim Report is presented in Sterling and all values are rounded to the nearest thousand pounds (£'000) except when otherwise indicated.

3. Segmental analysis

4. Taxation

Taxation for the 6 months ended 30th June 2012 has been calculated by applying the estimated tax rate for the current financial year ending 31st December 2012.

5. Dividend

An interim dividend of 0.2 pence per share has been proposed by the Board in respect of the six months to 30 June 2012 (2011: 0.2 pence).

6. Earnings per share

7. Copies of Interim report

The Interim report is available to view and download from the Company's website at www.densitron.com. If shareholders would like a hard copy of the interim report they should contact the Company Secretary, Tim Pearson.