LONDON Elektron Plc, whose subsidiaries include Arcolectric, Bulgin, Digitron, and Queensgate Instruments, has raised turnover from continuing operations by 24 percent to £19.4 million for the half-year ended July 31 as a result of acquiring Sifam Instruments last year.
Operating profit before exceptional items was down to £0.8 million from £1.3 million in the same period last year. Gross margin fell by 3 percent on higher material costs but but he company says is now recovering.
Exceptional costs were £0.6 million incurred in respect of reorganisation and redundancy, including moving switch manufacture to China. “The second half will continue to be challenging but economic turbulence will provide further opportunities for growth through acquisition,” said Keith Daley, chairman of Elektron.
“We are satisfied that the policy of acquiring underperforming manufacturing operations and fixing them is right and will bring substantial profit improvement. Off-shoring production to low cost areas will continue to be an important element of our strategy.”
Sifam a designer and manufacturer of nano-scale sensors and positioning actuators, electrical and electronic measuring instruments and precision multi-shot mouldings, was purchased in August 2007.