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 2010.

Highlights

Ø Revenue increased by 18% to £8.6m (2009: £7.3m).

Ø Operating profit of £0.15m (2009: operating loss £0.14m).

Ø Orders booked increased by 77% to £10.6m (2009: £6.0m).

Ø An increase in the total orderbook of £2.2m to £10.3m at 30 June 2010 (31 December: 2009 £8.1m).

Ø Net debt reduced by £0.1m to £0.2m at 30 June 2010 (31 December 2009: £0.3m).

Ø Evervision generated significant profits and cash during the first six months of the year.

Ø A further capital reduction negotiated with Evervision. Payment of £0.5m received on 3 September 2010.

Ø Resumption of payment of dividends to shareholders with declaration of 0.1p per share interim dividend.

Financial Highlights on continuing operations

Enquiries:

Densitron Technologies plc

Grahame Falconer / Tim Pearson

Tel: 0207 648 4200

Westhouse Securities Limited

Tim Metcalfe / Martin Davison

Tel: 020 7601 6100

Chairman's Statement

I am pleased to report that the Group has weathered the downturn well and that we have seen far more confidence in our markets over the first six months of the year than expected.

We began the year with a depleted orderbook, and therefore the focus for the first six months has been to rebuild it. Orders for the first 6 months of 2010 amounted to £10.6m compared with £6.0m booked in the same period in 2009, an increase of 77%. The increase in orders has come from both new customers and existing customers alike and is across the Group's product ranges.

Due to factory lead times extending during the recovery, and customer order schedules, it has been difficult to translate the orders booked during the period into sales and as such the rapid growth in orders has produced a time lag when turning them into sales. Consequently, the increase in sales for the first six months of the year was at a slower rate than for orders. Sales for the first six months of 2010 were £8.6m compared with sales made in the first half of 2009 of £7.3m, an increase of only 18%. This has resulted in a substantial increase in the orderbook during the period and at 30 June 2010 it amounted to £10.3m, an increase in the period of £2.2m. We therefore expect to see the growth in sales accelerate during the second half of the year.

Gross margin achieved in the six months amounted to £2.63m compared with £2.49m in the same period in 2009, an increase of 6%. The gross margin percentage has come under pressure from the mix of sales being conducted, increasing prices from Far East manufacturers and increasing shipping costs.

We announced in the first half of 2009 that cost saving measures had been introduced and these economies have enabled administrative expenses to be 8% lower than in 2009.

As a result of the increase in sales and the reduction in administrative expenses, the Group achieved an operating profit of £0.15m in the first six months of 2010 compared with a loss of £0.14m in the same period in 2009.

We have reduced our level of borrowings from £1.9m at 31 December 2009 to £1.8m at 30 June 2010. The level of net debt has also reduced from £0.3m at 31 December 2009 to £0.2m at 30 June 2010. We would expect to see the level of gross debt to increase over the remainder of the year as the level of business being conducted increases.

Operational review

The Group's operations are primarily the design, development, marketing and selling of electronic displays, the electronics that drive them and the plastics that house them.

European business - The European business has performed ahead of expectations, booking orders to the value of £5.4m compared with £3.8m booked during the first half of 2009, an increase of 42%. Sales during the first six months of the year totaled £4.7m, compared with £3.8m achieved in the same period during 2009, an increase of 24%. Gross margin increased from £1.29m in 2009 to £1.35m in 2010, an increase of 4.7% reflecting a reduction in the gross margin percentage due to the issues referred to above.

US business - The US was the first location in the Group to enter recession and was the first to exit it. The first half of 2010 has been strong with orders totaling £4m compared with £1.6m booked in the same period during 2009, an increase of 150%. Sales were £3.0m compared with £2.7m in the same period of 2009, an increase of 11%. Gross margin amounted to £0.86m compared with £0.75m achieved in the same period in 2009, an increase of 15%.

Asian business - The Asian business is made up of Densitron Asia and Densitron Corporation of Japan. In the six months to 30 June 2010 orders were £1.2m compared with £0.7m in 2009, an increase of 71%. Sales remained at £0.8m and gross profit was £0.4m, compared with £0.5m in 2009, a decrease of 20% reflecting the margin issues explained above.

Both the Asian subsidiaries have continued to perform well in the first half of the year. Densitron Asia's primary function remains as a support role to the rest of the Group, but it is also beginning to increase the amount of orders taken from external customers. Densitron Japan operates in the competitive Japanese market and while its sales and margins have remained similar to 2009, its orders have increased by 77%.

Evervision Electronics Corporation

Evervision is the Group's 24.48% investment in a Taiwanese display manufacturing company.

Evervision has performed well during the first half of 2010 achieving an operating profit of approximately £1.4m and has continued to generate cash.

A further capital reduction was approved during the first half of the year and the Company received its share amounting to £500,000 on 3 September 2010.

Land at Blackheath

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

I am pleased to report that the planning application for development of six houses is complete and has been submitted to the local authority for consideration. When we have further news we will keep shareholders informed.

Dividend

The Board of Directors consider that Densitron is in a much stronger financial position than it has been for some time and are optimistic regarding the outlook for trading. Consequently, I am pleased to announce a resumption of the payment of dividends, with an interim dividend of 0.1p per share being declared which will be paid on 22 October 2010to members recorded on the Company's share register at 24 September 2010.

Outlook

I have been very encouraged by the level of orders booked during the first half of 2010 and I am pleased that this improvement has continued into the second half of the year. We have far exceeded our internal forecasts for the first six months, which gives us strong confidence for the second half of the year.

Jan Holmstrom

Chairman

13 September 2010

Unaudited Condensed Consolidated Income statement

For the six months ended 30th June 2010

Unaudited Condensed Statement of comprehensive income

For the six months to 30th June 2010

Unaudited Condensed Consolidated Balance Sheet

As at 30th June 2010

Unaudited Condensed Statement of Changes in Shareholders Equity

For the 6 months to 30th June 2010

Unaudited Condensed Consolidated Cash flow Statement

For the 6 months ended 30th June 2010

Notes to the Unaudited Condensed Financial Statements

For the six months ended 30th June 2010

1. General information

Densitron Technologies plc is a public limited company ("the Company") incorporated in the United Kingdom under the Companies Act 1985 (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 statement for the year ended 31 December 2010 and are unchanged from those disclosed in the group's Annual Report for the year ended 31 December 2009.

The financial information for the six months ended 30 June 2010 and 30 June 2009 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 2009 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. Revenue

4. Segmental analysis

5. Taxation

Taxation for the 6 months ended 30th June 2010 has been calculated by applying the estimated tax rate for the current financial year ending 31st December 2010.

6. Dividend

An interim dividend of 0.1 pence per share has been proposed by the Board in respect of the six months to 30 June 2010 (2009: nil).

7. Earnings per share

9. 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 hardcopy of the interim report they should contact the Company Secretary, Tim Pearson.