Densitron Technologies PLC Trading and Legal Proceedings Update (2505Q)
November 05 2012 - 2:00AM
UK Regulatory
TIDMDSN
RNS Number : 2505Q
Densitron Technologies PLC
05 November 2012
Densitron Technologies plc
Trading and Legal Proceedings Update
Densitron Technologies plc announces that it expects its results
for the year to 31 December 2012 to be behind market expectations.
It does, however, expect that the operating profit for the year
will be ahead of that achieved in 2011.
The primary cause of this is certain orders being received later
than anticipated as a result of which the Directors now expect the
deliveries associated with these orders, and therefore resultant
sales, to be delayed into 2013. Orders booked in the first 9 months
of the year, however, remain strong and are in excess of 10% higher
than those booked in the same period in 2011. This trend is
expected to continue for the remainder of the year.
In March 2012 the Directors announced that the Company had
received notification of legal proceedings against it in respect of
a lease of a property located at Wallsend, Tyne and Wear, near
Newcastle. Full details of the action are set out in the
announcement dated 1 March 2012. The claim is defended but in the
interests of progressing the matter in an expedient manner, the
directors have resolved to enter into mediation proceedings to seek
a negotiated settlement if the other parties to the litigation are
prepared to do so.
Grahame Falconer, Chief Executive of Densitron said: "We are
disappointed that the Company will not sustain its recent growth in
the current financial year. However, the current strength of our
order book along with the development of intellectual property
suggests that the outlook for the business is positive and we look
forward to the coming year with confidence.
"In moving the Newcastle property claim into mediation, we hope
to be able to draw a line under this issue and allow management to
focus all its energies on developing the core business."
Further information:
Densitron Technologies plc Westhouse Securities Limited
Grahame Falconer / Tim Pearson Martin Davison / Jonathan Haines
Tel: 0207 648 4200 Tel: 020 7601 6100
This information is provided by RNS
The company news service from the London Stock Exchange
END
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