Trading statement and possible disposal.

Elektron issued a trading statement on the 12th January and

http://www.elektronplc.com/news/Trading_update_12-01-10.html

Key points :-

a. Significant upturn in orders. December had a daily order intake of 175k per day a record for that month and a 74% increase on the prior year comparable figure.

b. The company indicates profit will significantly exceed broker forecasts.

c. There is to be divisonal reorganisation, the number of divisions reduced from 3 to 2 the two new divisions being Elektron Technology and Elektron Ventures.

d. "The purpose of the reorganisation is to focus the Group and its management on the highest growth opportunities.
ET is currently concentrating on opportunities within the global connector market (estimated $35 billion sales in 2009). Each EV business unit will be managed for growth and where growth is not available, consideration will be given to disposal of the relevant business unit."

e. "The Board announces that it has signed a non binding letter of intent to enter into an irrevocable undertaking to accept an offer, when made, by Delta Controls Limited for all of the issued, and to be issued, share capital of Hartest Holdings plc at a price of 69p per share. There can be no certainty that Delta will make an offer or that any offer made will be successful. However in the event that an offer is successful Elektron expects to receive proceeds of approximately £1.37 million representing a profit on original cost of £0.01m and a profit on last reported carrying value of £0.90m. "