Companies: ITK   

Electronic communications systems specialist Intelek says underlying profits will ‘comfortably’ exceed market expectations.

The AIM-quoted company, which supplies electronic systems for satellite and microwave communications, as well as precision parts for the aerospace market, reports progress throughout its divisions. Swindon-based Intelek, which made £5.6 million pre-tax profit in the year to March 2007 on £37 million turnover, increased ‘underlying’ pre-tax profits 45 per cent to £1.48 million in the six months to September and now says ‘strong trading’ continued throughout the financial year to last month. 

The company’s Paradise Datacom satellite amplifier and modem business expects higher profits, despite the impact of a weak US dollar. Labtech, Intelek’s microwave components arm, returned to profit in the second half-year, after incurring a £500,000 operating loss for 2006/07 and breaking even in the first half of 2007/08.   

The company, steered by chief executive Ian Brodie, says its CML ‘aerostructures’ operation will report a ‘further year of encouraging sales and profits growth’. CML has been approved to build composite parts for military aircraft and has won its first order under a major military aircraft programme.

Shares in Intelek, which rose from 9.5p three years ago to 23.5p last July, now trade at 17.75p, up 2.75p today. They value the company at £15.5 million.

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Intelek	AIM	£12.01m	13.75p	-0.75p
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