Elektron Technology delivered an exceptional performance in Q3, with strong sales growth from all three businesses and a significant increase in margin. Consequently management now anticipates FY19 results significantly ahead of previous market expectations. We have increased our forecasts for adjusted PBT by 58% to £4.4m for FY19 and by 34% to £5.9m for FY20, along with an increase in year end net cash from £8.4m to £9.5m. We continue to value Elektron Technology on a sum-of-parts basis, as we believe headline numbers hide the value in a group with both profitable and lossmaking operations. Our upgrade has increased this valuation to 62-65p offering significant upside vs. the current share price.
