Densitron Technologies PLC Trading Statement (0461W)
20 December 2013 - 6:00PM
UK Regulatory
TIDMDSN
RNS Number : 0461W
Densitron Technologies PLC
20 December 2013
Densitron Technologies plc
(the "Company" or the "Group")
TRADING UPDATE
Trading Update
In August 2013 the Company announced that it expected to achieve
an operating profit ahead of that achieved in 2012. This
expectation was based on production orders for business that at
that time was in its pre-production phase. However, several of
these projects have not converted into mass production as quickly
as anticipated. As a consequence of this there is a substantial
profit shortfall in the UK as against previous management
expectations.
While it is still expected that the Group will remain profitable
at an operating level exceptional costs relating to the settlement
of the lease dispute in Newcastle are such that the Company will
report a loss for the current year.
Operational improvements in the second half were insufficient to
offset the loss incurred as a result of the Newcastle claim and the
net loss for the period is expected to widen against the position
described at the half year.
Business in the US and Japan has been in line with or better
than our expectations albeit that the contribution from Japan will
be affected by the fall in the yen exchange rate against the US
dollar.
Outlook
The pipeline of potential business in the UK is substantial and
growing and we have a number of new products but it has been very
difficult to close orders. In particular, the Company has billed
for development work on projects for major companies which the
Directors expect will produce significant business in the future
but the projects themselves have then been much slower to progress
than expected. Management believe that some of these orders will be
placed during 2014.
The property in Newcastle is currently being marketed and this
has generated an encouraging level of interest in taking the
property on.
Jan Holmstrom, Chairman, commented:
"2013 has been a difficult year for the Company. Challenging UK
market conditions were compounded by costs of the settlement in
relation to the property in Newcastle. Nevertheless the underlying
business remains profitable operationally and with a strong
pipeline we are optimistic for 2014."
Enquiries:
Densitron Technologies plc
Grahame Falconer / Tim Pearson
Tel: 0207 648 4200
Westhouse Securities Limited
Martin Davison
Tel: 020 7601 6100
This information is provided by RNS
The company news service from the London Stock Exchange
END
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