Elektron expects to beat forecasts after strong trading

Elektron Technology predicted annual profits would come in ahead of expectations after strong trading in the third quarter.

Sales jumped 34% to £8.6m in the three months to the end of October from a year earlier, with revenues in the year-to-date up 15% to £22.9m.

Growth in the third quarter was driven by a 37% sales increase to a record £7.8m at Bulgin, Elektron's established business. The company expects more moderate growth in the fourth quarter at Bulgin, which makes connectors and electronic components.

The company's shares rose 13% to 19.4p at 10:41 GMT.

Elektron invests Bulgin's profits in three early-stage technology businesses: Checkit, an app that automates checks for food, healthcare and facilities management businesses; a technology that checks for eye degeneration; and a nanopositioning business.

Combined sales for the eye and nanopositioning businesses were unchanged at £2.3m for the year to date. Checkit's sales for the year so far rose to £300,000 from £200,000.

John Wilson, Elektron's chief executive, said: "Q3 trading has been strong. The board now expects full-year performance to be ahead of its previous expectations."