Acquisition of Hartest Holdings. (to be updated)
"On 30 July 2010, Elektron announced the terms of a mandatory cash offer for the entire issued and to be issued ordinary share capital of Hartest not already owned by Elektron (the "Offer") at an offer price of 90 pence in cash (the "Offer Price") for each Hartest Share (the "Announcement").
Since the Announcement, the board of Hartest has agreed to recommend the Offer at the Offer Price for the reasons set out in the letter from the Chairman of Hartest at Part 1 of the Offer Document. "
The offer for Hartest.
Elektron's offer values Hartest PLC at about £8.3 million. However its believed by the time the deal is finalised on the 12th September HTH could have over £1 million cash on deposit plus the sale of their freehold property the sale been recently concluded. The sale proceeds amounted to a little over £700,000. Taking away cash could reduce the actual cost for Hartest to approx £6.6 million. Hartest has no net debt and will be highly cash generative.
Hartest could well add £1 million to our pre tax profits in the current year and thereafter between £2 million to £3 million pre tax in the short to medium term. I expect Hartest will grow its turnover faster under Elektron's control, they will use each others sales network and distributors to ramp up sales.
Combined group forecast turnover and profits.
The acquisition of Hartest is significant for Elektron. The enlarged group will probably have turnover of circa £50 million for the current year and I estimate pre tax profits of about £5million. For next year I estimate turnover of circa £75 million and pre tax profits of about £8 million.
Such is the significance of the Hartest acquisition Elektron has been shortlisted as Aim transaction of the year see 5 below:-http://www.aim-awards.co.uk/2010/awar.php#6.
AIM Transaction of the Year"The winner of this new award will be a company that has been transformed by a single financial or commercial transaction during the period under review. This is necessarily a wide ranging award, given to recognise a significant achievement by a company in transforming itself, literally at a stroke, and thereby creating significant shareholder value. "
5. AIM Transaction of the Year Sponsored by Zeus Capita
1. Bellzone Mining pl
2. Elektron plc
3. Petra Diamonds Ltd
4. Norman Broadbent plc
Saturday 4 September 2010
Trading update & Upgrade in broker forecasts.
Trading update and broker forecasts (to be updated further).
05 July 2010
Elektron Plc
Trading Update
As Elektron Plc ("Elektron" or the "Group"), the AIM quoted technology based company, approaches the end of its first half, it announces a trading update.
Pre-tax profits for the half year to 31 July 2010 are expected to be significantly ahead of management's previous expectations.
The Board continues to be cautious about the second half because of global economic events. However, the order book remains strong and the Board believes that the Group will perform better than management's previous expectations for the current year.
Elektron expects to release its interim results on 16 September 2010.
Broker Forecasts.
Brokers upgrade pre tax profit £900,000 but state there will be a small tax charge and exceptional items. EPS current year forecast increase to 4.1p. (basic).
Finncap increase price target from 30p to 40p.
05 July 2010
Elektron Plc
Trading Update
As Elektron Plc ("Elektron" or the "Group"), the AIM quoted technology based company, approaches the end of its first half, it announces a trading update.
Pre-tax profits for the half year to 31 July 2010 are expected to be significantly ahead of management's previous expectations.
The Board continues to be cautious about the second half because of global economic events. However, the order book remains strong and the Board believes that the Group will perform better than management's previous expectations for the current year.
Elektron expects to release its interim results on 16 September 2010.
Broker Forecasts.
Brokers upgrade pre tax profit £900,000 but state there will be a small tax charge and exceptional items. EPS current year forecast increase to 4.1p. (basic).
Finncap increase price target from 30p to 40p.
Elektron PLC results to 31 Jan 2010
Elektron results to 31st Jan 2010 in brief (to be updated in due course)
Highlights:
Turnover £29,882 (35,644)
Operating profits excluding discontinued operations goodwill exceptional operations £1,763 (£1,0002)
Very strong second half: EBIT of £1.5 million (2009: £0.3 million)
Dividend 0.5p (0.46p) to be paid on 17th August, scrip divi alternative
Outlook
Current sales and EBIT are well ahead of management expectations. Orders for the year to date are currently running at 148% of last year with the current Group order book standing at £8.1 million, 76% up on this time last year. It should however be borne in mind that prior year comparatives were especially weak and that it will be harder to sustain such dramatic percentage increases as the year progresses.
Highlights:
Turnover £29,882 (35,644)
Operating profits excluding discontinued operations goodwill exceptional operations £1,763 (£1,0002)
Very strong second half: EBIT of £1.5 million (2009: £0.3 million)
Dividend 0.5p (0.46p) to be paid on 17th August, scrip divi alternative
Outlook
Current sales and EBIT are well ahead of management expectations. Orders for the year to date are currently running at 148% of last year with the current Group order book standing at £8.1 million, 76% up on this time last year. It should however be borne in mind that prior year comparatives were especially weak and that it will be harder to sustain such dramatic percentage increases as the year progresses.
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