Companies: EKT   

Electronics group Elektron (formerly Bulgin) made a pre-tax loss of £0.5m in the 6 months to July (excluding goodwill amortisation and exceptional costs). But chief executive Brian Emmerson thinks the company will generate cash in the second half due to cost-cutting and a slight sales increase. Losses were up from £66,000 last year, but represented an improvement on the previous 6 months. Turnover was down 9% to £8m, while for the continuing businesses it was down 22%, against a 35% market decline. The board is about three-quarters of the way through its restructuring programme to combat this; the electronic components arm is already back in profit. Modest exceptional restructuring costs will be incurred in the second half from cuts in power electronics, but the measures are expected to result in a 9% reduction in costs for the rest of the year, with sales predicted to show an increase of around 4%. Emmerson says: 'We are looking at a modest profit at the operating level' in the second half. But he admits 'things are pretty tight on the cash side'. Emmerson reiterates an intention to tap the equity markets again when the company's share price recovers, partly to help make a couple of bolt-on acquisitions. The shares are very lowly-rated and will reward substantially if and when a recovery comes.