Intelek (AIM: ITK), the designer and manufacturer of electronic systems for the aerospace and satellite industry, slipped 5% on profit taking after announcing preliminary results for the year ended 31 March 2008.
Underlying profit before tax jumped 41% to £3.3 million (2007: £2.3 million) on lower revenues of £36 million (2007: £36.8 million), allowing earning per share to increase by 36% to 2.78 pence (2007: 2.05 pence). The company also reduced net debt by 25% to £3.9 million and increased the dividend by 15% to 0.45 pence. The stronger numbers on lower revenues was possible due to a 2% increase in margins to 30.9% and reduced debt services costs. The weaker headline revenue number was blamed primarily on unfavourable exchange rates between the US dollar and Sterling.
Chairman, David Bramwell, commented:
"Overall, I am encouraged by the steps our businesses have taken to broaden their product range, increase customer numbers and develop a more global footprint. I am confident that we will continue to make progress, despite the current challenging economic conditions."