Companies: EKT   

Power electronics and components group Elektron spent £1.5m on restructuring during the year to January. This was amid what chief executive Mike Emmerson called 'very, very difficult times', especially in telecoms and industrial applications. Losses hit £2.7m, compared with a pre-tax profit of £905,000 in 2000-1. Turnover was down from £17.5m to £16.9m. However, Emmerson reckons the £1.2m of savings made have laid the foundations for a return to profitability this year, market conditions permitting. The exceptional costs stem from £347,000 relating to the restructuring of struggling Bulgin Components, £343,000 on the failed implementation of a new IT system, aborted acquisition costs worth £211,000 and £600,000 on a pension scheme reorganisation. But £1.2 million has been cut from the group's cost base. Emmerson comments: 'The market remains uncertain and we will continue to align revenues with overheads.' On the acquisitions front, he says: 'We are clear about our targets, but if a company is not available on terms that we are satisfied with we will not buy it.' Emmerson adds that the share price will have to move up from current depressed levels if more purchases are to be made. Both of the Pennine Downing AIM VCTs and NatWest have taken holdings in the past six months, and Emmerson is to add to his own. Buy for a recovery.