7 April 2010

INTELEK plc ("Intelek")

TRADING UPDATE

The Directors of Intelek are pleased to issue the following trading update for the financial year ended 31 March 2010.

"Whilst our business opportunities from commercial markets for the most part have remained at low levels, our government and defence business has been a source of strength in all of our operating divisions.  Consequently, we expect to report Group underlying profit before tax for 2009/10 slightly ahead of managements expectations.

• In satellite communications, Paradise Datacom closed the year impressively. March sales included $1.2m of modems and related equipment for an international telecommunications company, booked and delivered within the month.  Total dollar sales for the year were in line with the previous year but comfortably ahead in sterling terms due to the strength of the dollar.  Our solid state amplifiers continue to perform strongly on government and military programmes, where cumulative sales in one particular project exceeded $6m in the year.  While we would obviously welcome a recovery in the commercial market, the traction gained by our modem technology and our world leading range of amplifiers provide us with confidence for the future. 

• Labtech, our microwave components business, is expected to have performed broadly in line with the previous year.  Delays on the latest high specification amplifier have caused a deferral of some sales into 2010/11.  A six-month delay in the receipt of an expected large order has resulted in a review of Labtechs structure, with a number of changes being implemented prior to the commencement of the new financial year.

• CML, our aerostructures company, finished the year strongly, albeit on a level of sales some 25% lower than the previous year.  This reduction was almost entirely due to the previously reported sudden and sharp decline in demand for corporate jets, particularly in the USA.  Nevertheless, the action taken by CML to reduce its costs in the first quarter led to a profitable performance at the operating profit level in each of the four quarters.  While the Airbus programmes were stable, CML secured increased revenues from the Joint Strike Fighter and over £0.5m of new business on the A400M project.

With commercial markets still showing no great sign of recovery, we shall continue to develop our presence in the international defence and security sectors where we expect to see further opportunities for growth. 

Full preliminary results will be released on 8 June 2010"

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