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 2013.

Highlights

· Revenue decreased by 5.7% to £10.0m (2012: £10.6m).

· Orders booked decreased by 6.8% to £10.9m (2012: £11.7m).

· Interim dividend declared of 0.1p per share (2012: 0.2p)

Financial Highlights on continuing operations

Enquiries:

Densitron Technologies plc

Grahame Falconer / Tim Pearson

Tel: 0207 648 4200

Westhouse Securities Limited

Martin Davison

Tel: 020 7601 6100

Chairman's Statement

The past 12 months has been a period of transition for Densitron where measures have been put in place to better position its long term prospects while trying to ensure growth in the short term. While operating performance is behind the same period for last year the Board is confident that with a stronger second half pipeline 2013 will exceed that achieved in 2012.

In the last year the Company has extended its product and service range to deliver more added value and provide more complete solutions for its customer's requirements. It will take a little time for the benefits of these changes to show through in sales and profits but we believe that the changes we have undertaken will benefit the medium and long-term prospects of the business.

We have recently announced that we are working with British Airways on an electronic luggage tag that will remove the need to attach the traditional paper tags. Working with a smart phone it will enable the user to automatically update the tag with the unique barcode containing their flight details. This project would not have been possible without our Bonding and Assembly facility and ePaper solution experience. There are several other projects of this nature that are currently being worked on where production will commence in the third quarter of 2013 and into 2014.

Operational review

The Group incurred a loss from operations in the first six months of £0.2m compared with a small profit of £0.1m in 2012.

Orders booked in the first half of 2013 were £10.9m compared with £11.7m booked in the first half of 2012, a fall of 6.8%.

Revenue in the first half of the year was £10.0m compared with £10.6m in the first half of 2012, a fall of 5.7%. Gross profit achieved fell from £3.1m to £2.7m, a decrease of 12.9%. Administrative expenses reduced from £3.0m to £2.9m, a reduction of 2.2%.

Although the first half results were a little disappointing, the second half of the year is traditionally the Group's stronger half and with the orders that have already been booked in July and August and the expected continuation of this improvement we remain confident that the full year results for the business will exceed the results achieved for the full year in 2012.

The US and Asian businesses have both grown during the period but both have experienced pressure on gross margins. It is the European business that has suffered most during the transition of the business but it is also here that the pipeline of new business is particularly strong and we expect to be able to exceed the performance achieved during 2012 with business that is forecast to be booked and shipped in the second half of the year.

Blackheath

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

Having received the existing use certificate we are in the process of putting together a planning application for a single dwelling on the site and are continuing to work 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, and updated Shareholders of developments in the 2012 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 are continuing to work to achieve a negotiated settlement with the Landlord in advance of the Trial date that has been set for 8 December 2013 and will advise shareholders when there are further developments.

Dividend

While the Board of Directors is disappointed with the results for the first half of the year it is confident that the second half will demonstrate a significant improvement and it is to this end that it considers that it is appropriate to declare an interim dividend. Consequently, I am pleased to declare an interim dividend of 0.1p per share. The dividend will be paid to shareholders on the register on 13 September 2013. The Company's shares will trade 'Ex-dividend' on 11 September 2013 and the proposed payment date is 4 October 2013.

Jan G Holmstrom

Chairman

22 August 2013

Unaudited Condensed Consolidated Income Statement

For the six months ended 30th June 2013

Unaudited Condensed Statement of Comprehensive Income

For the six months to 30th June 2013

Unaudited Condensed Consolidated Balance Sheet

As at 30th June 2013

Unaudited Condensed Statement of Changes in Shareholders' Equity

For the 6 months to 30th June 2013

Unaudited Condensed Consolidated Cash Flow Statement

For the 6 months ended 30th June 2013

Notes to the Unaudited Condensed Financial Statements

For the six months ended 30th June 2013

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 2013 and are unchanged from those disclosed in the group's Annual Report for the year ended 31 December 2012.

The financial information for the six months ended 30 June 2013 and 30 June 2012 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 2012 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 2013 has been calculated by applying the estimated tax rate for the current financial year ending 31st December 2013.

5. 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 2013 (2012: 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 hardcopy of the interim report they should contact the Company Secretary, Tim Pearson.