Elektron Technology plc  
Annual Report and Accounts 2016
Elektron Technology plc Annual Report and Accounts 2016 Elektron Technology plc Annual Report and Accounts 2016
Elektron Technology is a global 
technology group that designs, 
manufactures and markets products 
which are vital to a connected world.
We create and develop products for 
the networked, always-on world.
NEW PRODUCT LAUNCH
The Checkit product launch represents an investment in 
development to date of £2.8m. Checkit is transforming how 
businesses manage people and compliance across the food 
service, healthcare and facilities management industries 
– enabling them to enforce consistent work practices 
and automate countless manual checks.
Read more 
on page 12
12 Elektron Technology plc 1 Annual Report and Accounts 2016 Strategic report
Elektron Technology is a global business that 
designs, manufactures and markets products 
that connect, monitor and control.
OUR BUSINESS
HIGHLIGHTS
 » Group operating profits are up 80% to £0.9m (2015: £0.5m) on reduced revenues 
of £43.3m (2015: £44.4m)
 » Profit before tax: £0.8m (2015: £0.2m)
 » Underlying operating profits from Connectivity and Instrumentation, Monitoring 
and Control (IMC) up 42% to £3.4m (2015: £2.4m)
1
 » Checkit start-up losses increased to £2.2m (2015: £0.7m)
 » Net debt reduced by £1.1m to £1.6m (2015: £2.7m)
 » The Group successfully balanced its investment in new product development 
(particularly Checkit) with the incoming cash flow from its established businesses 
as targeted
 » A further £1.5m of capitalised development costs invested in Checkit in the year
 » Checkit launched its work management system in October 2015
 » Agar business sold after the year end for £2.0m cash proceeds and a further 
£0.3m deferred amount
1 Before non-recurring or special items, further details in Note 1.
STRATEGIC REPORT
1 Our business and highlights
2 At a glance
4  Chairman’ s st at ement
6 Chief Executive Officer’s statement
8 Markets
10 Our business model and strategy
12 Investing in our future
14 Key performance indicators
15 Risk and risk management
16 Principal risks and uncertainties
19 Financial review
CORPORATE GOVERNANCE
22 Board of Directors and Company Secretary
23 Report of the Directors
26 Remuneration report
32 Audit Committee report
34 Directors’ responsibilities statement
FINANCIAL STATEMENTS
35 Independent auditor’s report
36  Consolidat ed st at ement 
of comprehensive income
37  Consolidated balance sheet
38  Consolidated statement of changes in equity
39  Consolidated statement of cash flows
40  Notes to the consolidated financial statements
61  Parent company balance sheet
62 Statement of changes in equity
63 Notes to the parent company 
financial statements
67 Web property
68 Advisers
CONTENTS
Find out more online at
www.elektron-technology.com Elektron Technology plc 2 Annual Report and Accounts 2016 Strategic report
AT A GLANCE
We create and develop products that monitor, control 
and connect. Products that are used in thousands 
of ways that affect our everyday lives.
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40%
41.5%
Key products
 » Ophthalmic instruments
 » Nanopositioning and sensing equipment
 » Vehicle power management systems
 » Manufacture and distribution of scientific 
equipment and consumables
 » Router cutter design and manufacture
INSTRUMENTATION, MONITORING 
AND CONTROL
In our always-on world, networked measurement, 
monitoring and control are crucial. All over the 
world, Elektron Technology products are helping 
our customers to quantify real-world environments, 
process this data and act on the results.
GROUP SALES
SALES
£17.3m
UNDERLYING OPERATING LOSS
£(0.4)m
£(0.4)m
£(0.5)m
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£17.3m
£18.4m
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Key products
 » Sealed connectors for the most 
demanding environments 
 » Switches, indicators, battery and fuseholders
59.5%
58%
CONNECTIVITY 
Ensuring a constant supply of data and power 
in today’s fast moving world, through the design 
of high quality and flexible connectivity and switching 
solutions for even the most demanding 
of applications.
GROUP SALES
SALES
£25.8m
UNDERLYING OPERATING PROFIT
£3.8m
£25.8m
£25.8m
£3.8m
£2.9m
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’15 Elektron Technology plc 3 Annual Report and Accounts 2016 Strategic report
Key products
 » Cloud-based work management software based 
on interactive checklists
 » Smart wireless sensors for continuous  
automated monitoring 
0.5%
0.5%
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CHECKIT 
Checkit is a start-up business which offers a smart, wireless 
solution providing work management software and automated 
monitoring. It saves time and reduces risk and costs. It is used by 
facilities management, healthcare and food industries to enforce 
consistent work practices and automate countless manual checks.
GROUP SALES
SALES
£0.2m
UNDERLYING OPERATING LOSS
£(2.2)m
£0.2m
£0.2m
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£(2.2)m
£(0.7)m
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Over 4,000 customers 
Approximately 
100,000 end users
Network spanning 
over 125 countries 
KEY FIGURES
1. AMERICAS
Revenue contribution:
£8.2m
19% of Group revenue
2. UK
Revenue contribution:
£18.9m
44% of Group revenue
3. ASIA
Revenue contribution:
£4.3m
10% of Group revenue
4. EMEA EX-UK
Revenue contribution:
£11.9m
27% of Group revenue
Business is increasingly globalised and moving faster 
every day. That’s why we’ve built an organisation focused 
on delivering innovation. 
Read more in our financial review  
on pages 19 to 21
19 Elektron Technology plc 4 Annual Report and Accounts 2016 Strategic report
CHAIRMAN’S STATEMENT
with Keith Daley
Overview
The performance of the Group continues to show a marked improvement, 
demonstrating the successful implementation of the Group’s strategy, which 
is to prioritise investment in businesses that are capable of achieving significant 
growth over the medium term whilst ensuring that the cash flow from 
lower-growth established businesses is maximised. Historically the Group 
has struggled to show growth from its established businesses which operate 
in mature markets. Detailed commentary on our financial performance is 
contained in the financial review set out on pages 19 to 21.
Our stated objective last year and in the current year was to invest 
substantially all our cash flow into developing and marketing promising 
new products, particularly Checkit.
We conceive, design and market innovative engineered products and services 
for businesses that connect, monitor and control. We have a multi-skilled team 
of engineers and software and product line specialists based in Cambridge 
focused on the opportunities created by global trends in the following areas:
 » new waves of “aware” business applications: Checkit;
 » demand for ubiquitous power and data: Bulgin;
 » ophthalmic instrumentation targeted at conditions caused by ageing: 
Elektron Technology Ophthalmic; and
 » growth in high precision manufacturing: Queensgate.
In addition, Elektron owns a portfolio of seven brands that are being 
managed for cash flow. Several of these operate in static or declining 
markets necessitating close attention to costs and total value contribution 
to the Group.
Subsequent to year end we successfully completed the disposal of Agar 
for initial proceeds of £2.0m and potential deferred proceeds of £0.3m. 
Further details are contained in the announcement made to the AIM 
market of the London Stock Exchange on 23 May 2016.
Investing for 
the future
HIGHLIGHTS
 » Further improvement to overall 
Group performance
 » Checkit work management 
system launched
 » £2.0m raised from business disposals 
subsequent to the year end, leaving the 
Group in a net cash position 
Read more about our strategy 
on pages 10 to 13
10
Read more about our governance  
on pages 22 to 34
22 Elektron Technology plc 5 Annual Report and Accounts 2016 Strategic report
The disposal recognises the value of this business to the Group; however, 
it will initially be earnings dilutive, although we will seek to reduce this dilution 
through strict cost management. The disposal simplifies the Group structure 
and will allow management to concentrate on the remaining higher margin 
businesses and those capable of substantial growth.
Also, subsequent to year end we learned that the appeal in the High Court 
against the judgement in our favour in relation to the Bridge derivative 
action has been dismissed. This case has been an enormous distraction 
and has diverted much management time that could have been devoted 
to the Group.
People 
The Group continued to hire experienced professionals, particularly 
for its growth businesses, during the year. At the same time it has been 
necessary to reduce staffing levels at those businesses that are not 
growing. Elektron values its people and recognises the need to look 
after them, especially at those times when the Group’s plans have meant 
disruption for some. The commitment of Elektron’s people throughout 
the world, in what remains a challenging environment internally and 
externally, has once again been remarkable and deserves recognition.
Outlook
The Group is currently performing in line with the Board’s expectations 
at lower sales levels than the comparable period for last year, which saw 
a number of atypical stocking orders from distributors in Connectivity as a 
result of the implementation of the final stage of the distributor consolidation 
strategy. As a result, the Board anticipates that the trading performance 
in the first half for the businesses, excluding Checkit, will be at a lower level 
to last year, notwithstanding an improved sales mix of higher margin product 
sales and further efficiency gains. As planned, the Group is increasing its 
investment in Checkit, with added spend in sales and marketing to promote 
the work management system and preparatory marketing of the automated 
monitoring system which is due for launch in the second half of the year, 
together with further investment in production and other support areas.
Keith Daley
Chairman
8 June 2016
The Group has prioritised 
investment in businesses 
that are capable of achieving 
significant growth over the 
medium term. ” Elektron Technology plc 6 Annual Report and Accounts 2016 Strategic report
Maximising 
returns whilst 
fostering growth
CHIEF EXECUTIVE OFFICER’S STATEMENT
with John Wilson
Business strategy and performance
This report outlines the strategies being followed in each of the Group’s 
business segments. Detailed commentary on our financial performance 
is contained in the financial review set out on pages 19 to 21.
Summaries of the strategies for individual brands are set out below. 
We categorise markets according to growth characteristics. We do not 
detail this categorisation by brand and product for commercial reasons.
Sales in markets categorised as:
2016
£m
2015
£m % change
High growth 3.2 2.3 39%
Static/lower growth 29.2 29.3 —
Declining 10.9 12.8 (15)%
Total 43.3 44.4 (2)%
Connectivity sales: £25.8m (2015: £25.8m), underlying operating 
profit: £3.8m (2015: £2.9m), gross capitalised development costs 
to date: £1.1m (2015: £1.0m)
Connectivity comprises two complementary product families: Bulgin 
and Arcolectric. 
Arcolectric manufactures switches and indicator lights for white 
goods and light industry markets and operates in a highly commoditised, 
cost sensitive product environment with significant low cost competitor 
activity. Our strategy in this segment is to foster key original equipment 
manufacturer relationships with a view to increasing our average selling 
price through offering value added solutions. Operating in a declining 
market, with limited ability to differentiate standard products, continues 
to result in eroding revenues in all three geographical regions (APAC, EMEA 
and the Americas), although this is beginning to show signs of plateauing.
Conversely, Bulgin, a manufacturer of niche, ruggedised products 
used in harsh environments where a high level of ingress protection (IP) 
is required, operates in a low growth, more cost-insensitive market. 
Market launches of substantial newly developed products, combined 
with iterative product development and bespoke solutions, continued 
Bulgin’s sustained year-on-year growth, mostly offsetting the revenue 
declines experienced by Arcolectric. During the year Bulgin expanded its 
Buccaneer® range of environmentally sealed power and data connectors 
with the introduction of the new Buccaneer 4000 Series. Building on the 
success of the Buccaneer 6000 and 7000 Series of quick-locking connectors, 
the 4000 Series provides the same twist-lock coupling and “fit and forget” 
connectivity in a more compact format, making it easier for product 
engineers to integrate into their system designs.
Four years ago we implemented a strategy to increase Bulgin revenues 
through closer working relationships with an optimised, global distribution 
network. Over the period, we reduced the number of distributors by almost 
75% (274 down to 75). As well as attracting increased mindshare from our 
channel partners, due to increasing sales levels, this has enabled a reduction 
in overhead as a result of a significantly reduced number of transactions 
and we have worked hard to drive efficiency through our manufacturing 
operation. A decision to implement a planned build of inventory of our 
most popular products has helped improve both production efficiency 
and service levels to our partners.
The net result for Connectivity is a further increase in operating profit 
before non-recurring or special items of over 31%, compared with the 
prior year, on static combined sales.
HIGHLIGHTS
 » 31% improvement in underlying 
Connectivity profits
 » Investment in growth areas increased
 » IMC losses narrowed and brand portfolio 
rationalised subsequent to year end 
Read more about our business model  
on pages 10 and 11
10
Read more about our KPIs  
on page 14
14
In October 2015 we successfully 
launched the Checkit work 
management system and we 
are currently developing major 
opportunities with a number 
of blue-chip organisations. ” Elektron Technology plc 7 Annual Report and Accounts 2016 Strategic report
Substantially all Bulgin sales are now through our global, regional and 
national channel partners. During the financial year, despite high levels 
of destocking in the distribution channel due to economic conditions, 
Bulgin sales grew in both EMEA and the Americas, the latter now accounting 
for over 24% of Bulgin sales.
IMC sales: £17.3m (2015: £18.4m), underlying operating loss: £0.4m 
(2015: £0.5m), gross capitalised development costs to date: £2.6m 
(2015: £2.3m)
The IMC segment contains a number of small businesses that are managed 
as a portfolio. These include established brands in low growth or declining 
markets and businesses with high growth potential. Although in aggregate 
the segment returned an operating loss, there was a wide divergence between 
individual businesses with most of the losses being made by Queensgate, 
which is investing heavily in new products, but turnover grew by 61% over 
the prior year.
During the year the portfolio consisted of the following:
 » Agar (distribution of microscopy consumables): flat sales and sold 
since the year end.
 » Agar Medical, formerly Qados (distribution of medical consumables): 
much of this business has been discontinued in view of its poor profitability. 
The remainder has been absorbed by other IMC businesses following 
the sale of Agar.
 » Carnation (power management for specialised vehicles): limited investment 
in a new generation of product. Steady turnover.
 » Digitron (temperature and pressure related instrumentation): 
slightly declining sales.
 » Elektron Technology Ophthalmic (screening products for the two leading 
causes of irreversible blindness): investment in sales channels to lay 
the foundations for a further substantial increase in sales.
 » Queensgate (nanopositioning systems): substantial investment in new 
products; substantial growth from a low base.
 » Sheen (instrumentation for the paint and allied industries): investment in 
value engineering, improving process and compliance systems; slight 
decline in sales.
 » Titman (router cutter manufacturer): investment in plant and machinery; 
slight decline in sales.
 » Wallace (instrumentation for rubber industry): investment in improving 
process and compliance systems; substantial decline in sales caused 
by industry conditions.
Checkit sales: £0.2m (2015: £0.2m), underlying operating loss: £2.2m 
(2015: £0.7m), gross capitalised development costs to date: 
£2.8m (2015: £1.3m)
Our investment in Checkit is aimed at building substantial recurring 
revenues over time by delivering a range of products that remove the 
inefficiencies and limitations represented by manual, paper-based 
processes in businesses. Our focus is on industries such as food, 
healthcare and facilities management where activities performed 
by large numbers of front-line staff are still frequently recorded using 
pen and paper. Checkit introduces smart automation and easy-to-use 
apps to these businesses. The results are reduced costs, improved service 
levels and reduced business risk.
Checkit represents a new breed of business application that uses cloud 
computing and Internet of Things technologies to provide a cost effective, 
easy-to-use and affordable solution as a service that is leading the 
development of this new market.
In October 2015 we launched Checkit Work Management – a replacement 
for checklists based on smart handheld devices. We have delayed the release 
of the second key part of the product – automated monitoring – to allow us to 
spend the first half of 2016 finalising its design and testing. This technology 
will provide a wireless sensor network to automate the collection and tracking 
of key operational data such as temperature.
Checkit is now live with 78 customers, and is developing major opportunities 
with a number of blue-chip organisations in the following applications:
 » food service and retail, to manage health and hygiene checks, quality 
and operational efficiency;
 » facilities management, to manage services delivery and SLA (service level 
agreement) reporting; and
 » health, to manage delivery of “hotel services” to patients.
Food hygiene is a key application for Checkit, with over 500,000 premises 
in the UK alone inspected for food safety. It is also increasingly important 
to customers – our recent research
1
 shows that the impact of being implicated 
in a food hygiene incident is catastrophic for the survival of any restaurant 
business, with 75% of consumers saying they would refuse to return under 
the current ownership. To support the development of our proposition in 
this area we have created a pioneering Primary Authority Partnership with 
Cambridge City Council, providing legally enforceable support for the use 
of Checkit that is applicable across the UK.
John Wilson
Chief Executive Officer
8 June 2016
1 Checkit research carried out online with 1,000 UK consumers by Toluna in H1 2016. Elektron Technology plc 8 Annual Report and Accounts 2016 Strategic report
MARKETS
Exciting prospects 
in growing markets
CONNECTIVITY – AGRICUL TURE
The industry/background
Technology improvements in farming are being driven by a 
need for increased production to meet the growing demand. 
Innovation in the mobile/IT and energy spaces has the potential 
to make a huge impact on the running of a farm. For example, 
smart power systems, precision agriculture tools, farm management 
software and affordable sensors are all within reach of even the 
smallest farmers today. 
There is potential in radio frequency technologies (RFID, NFC 
and Bluetooth), the Internet of Things, and the big data that 
comes along with it, as well as in clean technology advances 
from ambient energy, waste-to-energy and renewable sources. 
Current investment has seen the agtech sector exceed £3 billion 
of investment for 2015, compared to £1.6 billion for all of 2014.
The challenge
Our customer has developed a system which allows growers 
to remotely control all irrigation sets from a soil, weather and 
map-based perspective. The system software integrates with 
typical hardware infrastructures including mobile applications. 
The system is field installable by the farmer and was required 
to be robust, easy to install and reliable in harsh environments.
Our solution
The customer developed proprietary software to monitor 
and control all aspects of irrigation within their system. 
The in-field sensory network required our quick connect 
400 Series connectors with embedded EEPROM chip technology 
incorporated into overmould wire harnessing. The various 
“standardised” lengths of electronically identifiable cable 
assemblies would become standard parts for farmers to 
build and setup their own system. 
Bulgin’s 400 Series power connectors provide IP68-rated protection 
against harsh environments. It is the smallest connector in the 
Buccaneer family with cable diameter ranges from 3 to 7mm. 
Its secure sealing system is ideal for submersion in water 
or protection against dust. 
The result
Our customer is leading the way with this technology, 
with the complete system presented this year at the 
World Ag Expo on 9–11 February 2016 in California, USA. Elektron Technology plc 9 Annual Report and Accounts 2016 Strategic report
OPHTHALMIC – AGE RELATED 
MACULAR DEGENERATION 
The industry/background
The ageing population and a variety of other factors, including 
diet and lifestyle, mean that the number of people suffering 
from age related macular degeneration (AMD) in the next 
few years is predicted to increase. Although many risk factors 
need to be considered when ascertaining a person’s likelihood 
to develop AMD, there is considerable evidence that low 
macular pigment (MP) is one of the main risk factors for having 
the disease. For this reason, screening for low macular pigment 
is one of the best ways to identify patients at risk of age related 
macular degeneration. 
There is now a c.£300m market (10–15% CAGR) for 
supplements, of which the main ones are lutein and 
zeaxanthin based, and these are consumed to delay the 
progression of AMD by increasing macular pigment density 
as there is also emerging evidence that increasing MP can 
slow the development of AMD. 
The solution
Elektron has worked with a Korean customer, who 
supplies supplements, to obtain registration for its MPS II, 
macular pigment screener, in Korea. The MPS II will be 
used by the customer to monitor the efficacy of the customer’s 
supplements in increasing MPOD (macular pigment optical 
density) values. The customer will market the MPS and its 
supplements through pharmacies, health specialty stores 
and eye clinics, increasing awareness of eye health and 
promoting prevention of AMD and thus the need for 
costly intervention. 
QUEENSGATE – HARD DISK DRIVE STORAGE (HDD)
The industry/background
Whilst unit sales of hard discs have been in decline, 
demand for HDD storage has increased. Average HDD 
capacity was around 1TB in Q3 2014, but it jumped to 
roughly 1.3–1.4TB per drive in Q4 2015. The combination 
of increased capacity and pressure to reduce manufacturing 
cost by increasing throughput is a technical challenge 
which requires dynamic nanoscale positioning.
The solution
Queensgate instruments has provided nanopositioning 
stages to test over half the world’s hard discs for over 
15 years. In 2014 we started work with our customer 
on a next-generation controller. The goal was to replace 
the existing system and provide an upgrade route for 
the existing install base of stages (>1000 systems) 
and a platform for the next generation of testers. 
The next generation of testers requires positioning systems 
which can move and settle to atomic levels in just a few 
milliseconds. The first step was to produce a low noise 
controller and provide the live interface to our customers’ 
control system. Working closely with our customers we have 
improved the performance not only of its specific version 
of controller but for our full range of positioning controllers. 
2015 saw the first substantial order for our new controller, 
48 systems for installation in its factory in the Far East.
As 2016 progresses our challenge is to deliver the 
next-generation stage capable of picometre levels 
of precision. The new stage can achieve resolutions 
of half the diameter of a hydrogen atom and speeds 
of 1000 cycles per second. This development will allow 
the testing of the next-generation HDD storage with speed 
and precision and reduce manufacturing costs. In doing this 
Queensgate maintains its position as a technology leader. Elektron Technology plc 10 Annual Report and Accounts 2016 Strategic report
OUR BUSINESS MODEL AND STRATEGY
A clear vision 
for the future
We create value in two simple ways: 
investing in new product development 
(NPD) and maximising operating returns 
from the Group’s existing portfolio of brands.
Our approach to running our business is to identify and then manage 
the key issues for the Group’s continued success. These include strong 
and effective risk management, maintaining high standards of governance 
and transparency and developing a multi-disciplined and diverse 
entrepreneurial team aimed at delivering value to all of our stakeholders.
INVEST IN NPD
MAXIMISE RETURNS FROM EXISTING PORTFOLIO
CREATING SUSTAINABLE, 
LONG-TERM VALUE
INVEST IN NPD
Over the past few years the Group has invested 
in a first-class technology team capable of delivering 
new-to-market products which will underpin the 
future growth of the Group.
MAXIMISE RETURNS 
FROM EXISTING PORTFOLIO
Driving improved performance from the Group’s 
existing portfolio has created the opportunity to 
reinvest for the long-term success of the Group. 
A diverse entrepreneurial team has been assembled 
to focus on delivering value from these businesses.
INNOVATE FOR GROWTH
INVEST IN INFRASTRUCTURES, PEOPLE AND CAPABILITIES
FOCUS RESOURCES FOR SUCCESS Elektron Technology plc 11 Annual Report and Accounts 2016 Strategic report
Innovate for growth
Continual investment in 
NPD to create a high growth 
product portfolio.
Focus resources for success
Invest selectively in products 
with the highest profit and 
growth potential.
Invest in infrastructure,  
people and capabilities
Create a scalable organisation 
to sustain growth, whilst ensuring 
safe procedures and operations 
for our people.
Key activities
 » Established engineering team 
in Cambridge Technology Centre.
 » Multi-year investment programme for core 
products developed.
 » Annual new product introductions planned.
Key activities
 » Review the existing portfolio for profit, 
return on capital and growth potential.
 » Continual focus on lean manufacturing 
processes and effective management 
of supply chain.
Key activities
 » Single global enterprise resource planning 
(ERP) system used by all operations.
 » Ancillary systems (customer relationship 
management (CRM) and analytics) and 
robust global networks substantially in place.
 » Capable multi-tiered leadership team 
and skilled workforce.
Our 2016 progress
 » Further expansion of software 
engineering team.
 » Accreditation to BS OHSAS 18001:2007 – 
Occupational Health and Safety Management.
 » Expansion of our CRM analytics with key 
business partners.
Our 2016 progress
 » Underlying performance of Connectivity 
and IMC up by over 40%.
 » New product launches made on time.
 » Existing portfolio rationalisation resulting 
in the sale of a business post year end.
Our 2016 progress
 » Launch of Checkit work 
management software.
 » Launch of Buccaneer 4000 Series 
connector range.
 » Commencement of enhancements 
to Queensgate product range.
Our future priorities
 » Retention of key skills in a competitive 
environment, by ensuring a challenging 
and rewarding work environment.
 » Maximise the utilisation of the Group’s ERP 
system to improve control and efficiency.
Our future priorities
 » Continue to invest in fledgling 
brands and products that are 
capable of substantial growth.
 » Maximise value from the remainder 
of the portfolio.
Our future priorities
 » Checkit automated monitoring 
launch in 2016/17.
 » Prototype launches of 
Queensgate enhancements.
 » Upgrades to Ophthalmic product range. INVESTING IN OUR FUTURE
Changing the way businesses 
manage people and compliance 
Checkit is transforming the way businesses manage food safety, 
hygiene and facilities management, replacing paper-based systems 
with a centralised, interactive cloud-based way of managing the 
multitude of tasks that staff need to do on a daily basis. 
By enforcing consistent work practices and automating countless 
manual tasks, Checkit increases workforce productivity while 
reducing business risk and costs.
INTERACTIVE CHECKLISTS
 ✓ Standardise procedures
 ✓ Alert, prompt and guide staff
 ✓ Time-stamped audit trail
AUTOMATED MONITORING
 ✓ Continuous, smart 
wireless monitoring
 ✓ Automated alerting
 ✓ Auditable records
REDUCED COSTS
 ✓ Automate and streamline 
repetitive tasks
 ✓ Improve workforce 
productivity and reduce 
wastage and energy costs
 ✓ Track, analyse and 
improve performance
MINIMISED RISK
 ✓ Automate and 
enforce compliance
 ✓ Identify and address 
issues early
 ✓ Monitor across multiple sites
12
HACCP WARD SERVICE
FOOD SAFETY TEMPERATURE CHECKS
DELIVERIES CLEANING SCHEDULES
Save staff time and 
reduce risk and costs.
Checkit has been approved by the Cambridge City Council food safety team. This landmark Primary Authority Partnership has been created 
to help all food businesses achieve better food safety and hygiene ratings. 13
Checkit enables us to operate more 
proactively and identify and remedy 
issues prior to them becoming incidents. 
Cloud access from any mobile device 
means potential faults at the plant can 
be detected even if the team is off site. ”
Steve Clow, Site Engineer, J.O. Sims Ltd.
Leading supplier of fresh fruit, ingredients and snacks.
75%
of people would never 
visit a food outlet implicated 
in a poisoning or hygiene 
incident while it was under 
the same management
Only 3%
would visit even if a trusted 
friend recommended it 
THE BUSINESS IMPERATIVE 
Checkit carried out extensive research of UK consumers on their 
attitudes to food safety, hygiene and customer service. Elektron Technology plc 14 Annual Report and Accounts 2016 Strategic report
KEY PERFORMANCE INDICATORS
We regularly produce a wide variety of key figures for all 
of our businesses that enable us to identify performance 
against budget and the previous year. New KPIs have been 
introduced to focus on the Group’s strategy of reinvesting 
cash generated into new product development.
Key performance indicators are shown below:
GROSS PROFIT MARGIN 
37.2%
37.2%
35.6%
’16
’15
The ratio of gross profit to revenue 
expressed as a percentage.
NPD TO EBITDA RATIO 
0.5:1
0.5:1
0.3:1
’16
’15
Ratio of the investment in new 
products to EBITDA in the year.
BASIC EARNINGS PER SHARE
0.4p
0.4p
0.1p
’16
’15
The profit after tax on continuing 
operations divided by the weighted 
average number of ordinary shares 
in issue during the year, excluding 
Treasury shares.
ADJUSTED EARNINGS PER SHARE
0.5p
0.5p
1.0p
’16
’15
The profit after tax before non-recurring 
or special items on continuing operations, 
divided by the weighted average number 
of ordinary shares in issue during the year.
NET GEARING 
14%
14%
26%
’16
’15
The ratio of total borrowings 
less cash to shareholders’ funds 
expressed as a percentage.
NET ASSETS PER SHARE 
6.8p
6.8p
6.4p
’16
’15
Net assets divided by the number 
of ordinary shares in issue at the balance 
sheet date, excluding Treasury shares, 
expressed in pence per share.
HEADCOUNT 
1,020
1,020
1,050
’16
’15
The average monthly number 
of persons employed by the Group.
EBITDA
£3.7m
£3.7m
£3.6m
’16
’15
Earnings before interest, tax, 
depreciation, amortisation and 
non-recurring and special items.
NET OPERATING PROFIT % 
OF REVENUE BEFORE NON-
RECURRING OR SPECIAL ITEMS
2.8%
2.8%
3.8%
’16
’15
The ratio of net operating profit before 
non-recurring or special items to revenue 
expressed as a percentage. Elektron Technology plc 15 Annual Report and Accounts 2016 Strategic report
RISK AND RISK MANAGEMENT
The management of the business and the nature 
of Elektron’s growth strategy are subject to a number 
of risks and uncertainties. 
Our ability to meet our goals and objectives may be affected by a number 
of risks and uncertainties relating to our strategy, business model and 
operating environment. 
Our approach
Effective risk management aids decision making, underpins the delivery 
of the Group’s strategy and objectives and helps to ensure that the risks 
the Group takes are adequately assessed and actively managed. The Group 
regularly monitors its key risks and reviews its management processes and 
systems to ensure that they are effective and consistent with good practice. 
The Board is ultimately responsible for the Group’s risk management. 
The risk management process involves the identification and prioritisation 
of key risks, together with appropriate controls and plans for mitigation, 
which are then reported to the Board. 
Regularly review 
and evaluate
Identify 
risk
Assess risk 
and impact
Update key 
risk register
Create 
mitigation 
strategy
THE BOARD
Objectives of the Elektron risk 
management process:
 » to identify and understand the risks 
that Elektron faces in the execution 
of its strategy and the operation of its 
business model;
 » to ensure that the risk appetite of the 
Board is embedded throughout the 
organisation and fully understood by 
those who are responsible for managing 
risk and making key decisions across 
the business;
 » to assess the potential impact 
of identified risks and to create 
and maintain a register of these 
risks, documenting the decisions 
taken and the judgements made;
 » to ensure that appropriate mitigating 
actions and controls are in place for 
all identified risks and that the residual 
risk is aligned to the risk appetite 
of the Board;
 » to control systematic risks within 
the organisation by maintaining and 
improving a system of internal controls 
to manage risks in decision making, 
legal contract management, quality 
and regulatory processes and the 
processing of financial transactions; and
 » to ensure that identified risks are 
reported to relevant stakeholders in 
a timely manner to facilitate effective 
decision making.
Read more about our risks  
on pages 16 to 18
16 Elektron Technology plc 16 Annual Report and Accounts 2016 Strategic report
Change in 2016
PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and the nature of Elektron’s growth 
strategy are subject to a number of risks and uncertainties. Elektron’s 
risk management processes are forward looking in the identification, 
management and mitigation of the key business risks that could 
impact the Group’s immediate and long-term performance. 
The following risks are those that the Group considers could have the most serious adverse effect on its performance. 
RISK DESCRIPTION AND POTENTIAL IMPACT MITIGATING ACTIONS CHANGE
Level of sales
Elektron’s revenues are, and will be, principally from sales of its 
products. There can be no assurance that current product revenues 
can be maintained or increased in the future. Product sales may be 
affected by adverse market conditions or other factors, including 
pricing pressures from governments or other authorities, competition, 
the withdrawal of a product because of a regulatory or other reason, 
or the financial or commercial failure of a marketing partner. Some 
of the markets for Group products are in decline. The Group is highly 
operationally geared which means that a relatively small reduction 
in sales can lead to a much larger percentage reduction in profits.
The Group has approximately 4,000 customers (with no one 
customer amounting to more than 8% of sales) and substantially 
more end users worldwide. Its portfolio of brands and products 
to some extent mitigates risk through diversity. 
The investment in NPD assists in reducing the risk of sales decline 
by focusing on products that are in one way or another unique 
within markets that are growing or are expected to grow.
The Group’s sales force is focused on geographically diverse markets 
in order to reduce the risk of a downturn in a particular geography.
Reliance on legacy business to fund NPD
Many of the Group’s products were developed more than 15 years 
ago and are sold in low growth, static or declining markets. If the 
rate of attrition were to accelerate, it would become increasingly 
difficult to fund NPD to create future growth.
The Group continually focuses on reducing costs and thereby giving 
customers the best value for money in order to defend itself against 
competition in difficult markets. It seeks to bring new products to 
market at the earliest possible time and will not engage in speculative 
developments. It seeks to obtain best value for money from its development 
programmes and the Group will also seek to maximise value by making 
disposals from its legacy portfolio.
Relationship with end users
We sell a significant proportion of our sales through distributors 
and in many cases do not have direct contact with end users. 
Distributors may suggest the substitution of competitors’ products 
for our products.
The Group has incorporated a requirement for Point of Sale (POS) 
data into many contracts with distributors. With POS data the Group 
can monitor the account base being managed through distribution. 
This enables maintenance of existing customers and identification 
of new customers.
We seek to arrange joint visits with distributors to key customers.
International nature of the Group
The Group sells globally and manufactures a proportion of its 
products outside the United Kingdom, which in turn exposes us 
to the economic and political environments of those locations.
The Group carefully monitors conditions in each country in which 
it operates and in appropriate cases ensures it is paid for goods 
in advance. The Board keeps under regular review the potential 
impact of developments in Tunisia on the Group’s operations. 
As a consequence it also keeps its insurance arrangements under 
regular review and takes out appropriate cover, including political 
risk insurance.
MARKETS
Increased
No change
Decreased Elektron Technology plc 17 Annual Report and Accounts 2016 Strategic report
RISK DESCRIPTION AND IMPACT MITIGATING ACTIONS CHANGE
Price erosion
Elektron experiences competition both from emerging suppliers 
based in low cost countries and traditional European suppliers 
seeking to obtain market share by reducing prices.
The Group manages this risk by continual monitoring of competitive 
activity and by the continual investment in the design of innovative 
products for niche applications.
It operates a low cost manufacturing facility in Tunisia.
It seeks to promote its offerings by focusing on excellent customer 
service and quality rather than price.
Success of NPD
Products developed may not work. They may not be accepted in the 
market leading to write-offs of capitalised development.
Each NPD project is managed through a stage-gate process during 
which the project is assessed on a regular basis against the market 
requirements (which are regularly reviewed). This allows early visibility 
and fixing of issues consequently limiting exposure.
Control of NPD
Development projects may overrun in time and cost causing losses 
to the Company.
The scope of each project is defined by the project specifications. 
The project is monitored on a monthly basis against its scope. 
In addition, the stage-gate process continually refines the plan, 
eliminating major uncertainties early on in the project.
Checkit demand unpredictable
Checkit’s target market consists of around 500,000 businesses 
in the UK. If demand for the initial launch were too great, Elektron 
would not be able to supply products, whether for operational 
or financial reasons. This would tarnish the brand and cause losses.
The Group manages this risk by controlling demand creation activities 
(for example, by phasing the launch of new offerings and introducing 
lead generation activities incrementally) and by building an extremely 
flexible, scalable supply chain and by automating key internal processes, 
such as account creation, to increase scalability.
Currently non-existent markets
Checkit is an innovative product with several proposed features that 
do not currently exist in the market. Its target market currently uses 
paper-based systems. It is therefore necessary to make assumptions 
as to how the market will develop until sufficient market feedback 
has been obtained post product launch. If those assumptions are 
wrong the Company will have misallocated resources causing losses.
The business case for Checkit is based on considerable feedback 
gained in marketing the current first-generation product and the 
launch of its work management solution in October. The Group 
is continually evaluating learning and research from the market.
Our approach and technology provide capabilities that mitigate some 
of this risk. They are suitable for a wide variety of food business types 
and have applications beyond food hygiene in a number of large 
markets. We are therefore not reliant on one highly specific segment.
Cloud services
The Group is reliant on cloud services provided by third parties 
in respect of its Checkit product. The failure or withdrawal of these 
services would mean that Checkit could not function.
This risk is mitigated by selecting large, global providers with 
demonstrable scale and reliability to provide the Checkit cloud 
offerings and designing the systems where possible to allow 
functionality to be moved between providers. 
MARKETS CONTINUED
NPD, INCLUDING CHECKIT Elektron Technology plc 18 Annual Report and Accounts 2016 Strategic report
PRINCIPAL RISKS AND UNCERTAINTIES CONTINUED
RISK DESCRIPTION AND IMPACT MITIGATING ACTIONS CHANGE
Commodity and currency fluctuations
A significant amount of Elektron’s purchases are plastic moulding 
powders and metal parts. Consequently exposure to movements 
in commodity prices can affect profitability. A significant percentage 
of Elektron’s input and output transactions are denominated 
in currencies other than Sterling.
We regularly review prices and currencies in order to ensure 
that an appropriate level of cost is passed on to customers. We do 
not tie ourselves into long-term pricing contracts with customers. 
We do not tie ourselves into long-term currency hedging contracts.
Where possible we match currency inflows and outflows.
Product design is kept under review to seek to ensure that Elektron’s 
products use no more of such commodities than product offerings 
of our direct competitors.
Bank facilities and liquidity
The Group’s bank facilities contain performance covenants including 
minimum headroom, interest cover and debt to borrowing ratio 
which, if breached, could lead to a need to renegotiate terms or, in 
the extreme case, a reduction or withdrawal of the facilities concerned. 
The Group only has a limited forward order book for its products 
creating unpredictability in revenues and cash.
The Group maintains regular and transparent dialogue with its 
primary facility lender to ensure they are aware of developments 
in the business and reviews the level of facilities required with them 
based on the Group’s forecasts. These forecasts indicate that it will 
meet the covenant tests under this facility. The sale of Agar has 
considerably reduced the reliance on the currently available facilities.
The Board receives weekly and monthly information to enable 
it to consider the Group’s short and medium-term performance. 
If performance is not in line with forecast, the Group has a number 
of mitigating actions that could be implemented.
IT systems
Elektron is increasingly reliant on its IT systems which, if lost, 
would mean that the Group would be unable to function.
The Group has engaged and invested in disaster recovery 
and business continuity plans to reduce the risk of outage 
and improve recovery from major interruptions. The Group 
maintains an appropriate level of backup at all times.
Reliance on key individuals and retention of high quality staff
The Group is increasingly dependent on key persons in commercial 
or management areas. The profitability and reputation of the business 
may be adversely impacted if they were to depart without warning. 
The Group is highly dependent on its technology team in Cambridge 
to enable it to grow. 
The Group seeks to attract and retain well qualified staff by 
designing appropriate remuneration packages and making 
Elektron an attractive place to work. Considerable emphasis 
is placed on teamwork.
The Group seeks to identify employees who may be considering 
leaving with a view to addressing any concerns.
Reliance on key suppliers
Certain of the Group’s products are reliant on single-sourced 
items. If those suppliers were unable to supply, the Group 
would be unable to sell some products.
The Group maintains an open dialogue with suppliers to ensure that 
an early warning system is in place. Where subcontracted items are 
single sourced, the Group ensures that appropriate technical files 
and work instructions are maintained.
Customer reliance on Group products
Many of Elektron’s products are essential to the running 
of its customers’ businesses. Were those products to fail, 
Elektron could be liable for consequential losses.
The Group seeks to protect itself by ensuring that all products meet 
quality standards.
Conditions of sale contain clauses limiting losses to the amount 
of the sale. Consequential losses are excluded from liability.
FINANCE AND OPERATIONS Elektron Technology plc 19 Annual Report and Accounts 2016 Strategic report
FINANCIAL REVIEW
with Andy Weatherstone
Further progress was made during the year with operating profits from 
the Group’s Connectivity and IMC businesses increasing to £3.4m, up 42% 
from the previous year, enabling £3.4m to be invested in the development 
of Checkit and used to reduce the level of net borrowings by £1.1m 
to £1.6m.
Group revenue for the year decreased by 2.5% to £43.3m (2015: £44.4m), 
following the pattern of the previous year. Checkit, as a start-up operation, 
contributed £0.2m (2015: £0.2m) of Group revenue. 
The continued implementation of our improvement plans, focusing 
on margin improvement through selective price increases, product 
rationalisation and cost reductions, led to a significant improvement 
in underlying operating profits
1
 from businesses, excluding Checkit, 
from £2.4m in the previous year to £3.4m this year, an increase of 42%. 
After Checkit’s increased start-up losses of £2.2m (2015: £0.7m), 
underlying Group operating profit was £1.2m (2015: £1.7m).
Group EBITDA (Earnings before interest, taxation, depreciation 
and amortisation) maintained at £3.7m (2015: £3.6m) and provides 
a useful measure of the Group’s cash generation from its operations.
As expected, none of the non-recurring or special items were cash items 
(2015: £0.8m), leaving £0.3m (2015: £0.4m) of non-cash items relating to 
amortisation of acquisition intangible assets and share-based incentive 
charges, which results in an overall profit before tax from continuing 
operations of £0.8m (2015: £0.2m).
1 Before non-recurring or special items.
Segmental performance 
Connectivity
2016
£m
2015
£m
Revenue 25.8 25..8
Underlying operating profit 3.8 2.9
EBITDA 4.8 3.6
Underlying operating profits grew by £0.9m (31%) over the previous year 
in spite of a flat revenue performance.
Although we experienced some impact from destocking by our major 
distribution partners, Bulgin revenues grew 9% over the prior year as the 
Group benefited from the optimised distribution channel, with the direct 
sales force focusing its attention on managing key OEM accounts and 
channel partners. In contrast, Arcolectric revenues continued to contract, 
albeit at a slower rate of 11% compared to 15% in the previous year, with 
falls experienced across all of the main regions which we serve due to 
our decision not to compete solely on price in a market where price 
is the key differentiator.
Margins continue to improve due to a number of factors including targeting 
growth of higher value added sales in Bulgin, the continued improvement 
in manufacturing efficiency in both the UK and Tunisian manufacturing 
operations and a drive to reduce the cost of our key raw materials and 
components together with reduced supply costs.
Over the last three years we have sought to strengthen the local management 
in Tunisia and have coupled this with a planned programme of investing 
in the factory and upgrading tooling and equipment. This has resulted in 
continued levels of efficiency and reduced levels of material waste. This is 
a strategy for the long term and we expect further gains in performance in 
the coming year in part to offset local wage inflation, which has been running 
at an annual rate of 7% over the past three years.
The autonomy of the Tunisian operations has meant that there has been 
little impact from the UK government’s recommended travel restriction 
for UK nationals. The Group has reviewed its insurance arrangements, 
including political risk cover, in respect of its Tunisian operations to 
ensure they remain appropriate in the aftermath of the terror attacks.
Progressing 
towards our goals
Further progress was made during the 
year with underlying operating profits 
from the Group’s Connectivity and IMC 
businesses increasing to £3.4m, up 42% 
from the previous year, enabling £3.4m 
to be invested in the development 
of Checkit and used to reduce the level 
of net borrowings by £1.1m to £1.6m. ” Elektron Technology plc 20 Annual Report and Accounts 2016 Strategic report
FINANCIAL REVIEW CONTINUED
Segmental performance continued
IMC
2016
£m
2015
£m
Revenue 17.3 18.4
Underlying operating loss (0.4) (0.5)
EBITDA 0.8 0.5
The performance of the IMC portfolio of brands was mixed. The Group 
continues to experience declines in demand from some of its more 
mature brands and this has outstripped the improvement achieved 
from the growth brands in which the Group is investing.
IMC brands are small in size and highly operationally geared with small 
changes in sales having a marked effect on overall performance. As with 
Connectivity there is a focus on reducing costs wherever possible but 
this is made more difficult given the size and lack of synergy between 
some of the brands. Nevertheless, losses were narrowed on revenues 
which were 6% lower than the previous year.
The Group achieved increased sales in its growth brands, ophthalmic 
and Queensgate, of 19% and 61% respectively due to the new product 
launches in recent years. The Group is continuing to invest in these 
brands and upgrades and additional products are expected during 
the current financial year.
Wallace experienced a significant decline in demand following the 
weakening of rubber prices, resulting in a fall of 44% of equipment sales 
and further falls in equipment service revenues. No recovery is expected 
in the near future. Agar, Sheen, Titman and Digitron experienced falls in 
demand ranging from 5% to 10%, with Carnation consolidating on its much 
improved performance from last year on slightly higher improved sales.
The Group is committed to maximising shareholder value from these brands 
in both the short and medium term. The steps taken include the downscaling 
of its Qados business followed by the sale of the Agar business since the 
year end, which has realised value of up to £2.3m. The Group’s immediate 
focus is to reduce costs to offset the lost contribution from these businesses, 
whilst maintaining investment in its growth brands.
Checkit
2016
£m
2015
£m
Revenue 0.2 0.2
Underlying operating loss (2.2) (0.7)
LBITDA (1.9) (0.5)
Checkit remains in its start-up phase and the losses for the year represent 
costs incurred to support the development of the brand. Revenues represent 
sales principally from earlier prototype systems. Following the launch of its 
work management service, the Group has ramped up investment in sales 
and marketing to promote the new product. There was also investment 
in improving manufacturing capability. The Group also fully amortised the 
remaining capitalised development costs relating to earlier prototype systems.
Capitalised product development on the work management and automated 
monitoring projects amounted to £1.5m during the year, over double that 
of the previous year. The total cash absorbed by Checkit in the year amounted 
to £3.4m. 
Checkit is expected to remain loss making whilst the revenue stream 
and associated margin increase over the medium term, and a further 
cash investment of £4m is planned for the current year. Initial reaction 
from large customers has been extremely positive.
New product development (NPD)
Elektron spent £3.5m on NPD and sustaining engineering in the financial 
year (2015: £2.1m). Of this, £1.9m was capitalised (2015: £1.1m), mainly 
focused on Checkit, although the development of a new range of Bulgin 
connectors – the 4000 Series – was also completed and launched during the 
year. In the current year the principal focus will continue to be on completing 
the automated monitoring product release for Checkit and developing 
further enhancements to the Queensgate product range. 
The net book value of capitalised NPD is as follows:
2016
£m
2015
£m
Bulgin 0.7 0.7
Queensgate 0.8 1.2
Ophthalmic 0.4 0.4
Subtotal 1.9 2.3
Checkit 2.4 1.2
Total 4.3 3.5
The Board has undertaken a detailed review of the business plans, including 
a sensitivity analysis, supporting the justification of the carrying value 
of its NPD investment. 
People and employment costs
The Group continues to invest in its NPD programme and, as a consequence, 
employment and contractor costs in technical and engineering have risen 
in the current year by approximately £1.0m. Headcount reduced elsewhere 
as part of our efficiency plans to offset wage inflation and incentive payments. 
Overall the total wage cost for the year was £15.1m (2015: £14.1m) with an 
average number of employees of 1,020 (2015: 1,050), of which 721 (2015: 754) 
were employed in Tunisia.
Net finance costs
Interest costs on borrowing decreased by £0.2m to £0.1m (2015: £0.3m), 
reflecting the decrease in the average level of net debt from £4.8m in 
2015 to £1.5m in 2016, representing an effective interest rate of 6.0% 
(2015: 6.1%).
Taxation
The Group continues to not recognise any deferred tax in respect of UK 
trading losses or other timing differences as the Board remains of the view 
that the restructuring of the Group, the continued investment in NPD and the 
launch of Checkit will result in minimal taxable profits in the foreseeable future.
At 31 January 2016 the Group had estimated unused trading losses in excess 
of £4.9m (2015: £5.0m) to offset against future UK profits. The tax charge 
in the year of £0.2m (2015: £Nil) is in respect of profits earned overseas. Elektron Technology plc 21 Annual Report and Accounts 2016 Strategic report
Earnings per share
The average number of ordinary shares in issue during the year 
was 171.0m (excluding shares held by the Employee Benefit Trust). 
Basic earnings per share in respect of continuing operations before 
non-recurring or special items were 0.5 pence (2015: 1.0 pence). 
After taking into account non-recurring or special items to the financial 
statements (see note 4) the Group recorded earnings per share on continuing 
operations of 0.4 pence (2015: 0.1 pence).
Cash flow and net debt
The Group generated cash of £4.1m (2015: £4.9m) from operations 
before non-recurring or special items, of which £0.3m (2015: £1.4m) 
was from a reduction in working capital. Reductions in working capital 
were more modest given the need to build up inventory of Checkit products 
and the strategic decision to increase Connectivity finished products 
to improve service levels to customers. In spite of some improvement, 
inventory levels in a number of other brands remain too high and a major 
focus of the current year is to reduce these through better management 
of procurement and alterations to production planning.
Total capital investment in the year was a net £2.6m (2015: £1.5m), 
representing 104% (2015: 84%) of depreciation and amortisation.
Overall net cash generated of £1.1m reduced net borrowing to £1.6m. 
Bank facilities, covenants and going concern
At 31 January 2016 the Group had available facilities of £5.4m which 
include a revolving credit facility of £2.0m, available invoice finance facilities 
of £3.0m (which could increase up to £5.0m depending on sales levels) 
and leasing facilities of £0.3m, together with a bank overdraft of £0.1m. 
At 31 January 2016 available headroom on these facilities amounted to £3.5m.
The Group successfully agreed a two-year extension to its revolving credit 
facility in April 2016 at a level of £2.1m, reducing by £0.28m per quarter. 
The Directors have prepared and reviewed forecasts and projections for 
a period of not less than twelve months from the date of this announcement. 
These are based upon detailed assumptions, in particular with regard to 
key risks and uncertainties together with the level of borrowings and other 
facilities made available to the Group. The Board also takes account of 
reasonably possible changes in trading performance to determine whether 
the Group should be able to operate within its current level of facilities.
In the event, should actual performance fall below the current forecast 
levels in this period, the Group has a number of mitigating factors available 
to it and the Board has the necessary monitoring and controls in place in 
order to be able to put the required actions in place if it sees a need to do so.
The Directors have, at the time of approving the financial statements 
and after taking into account the factors noted above, concluded that 
the Group has adequate financial resources to continue in operational 
existence for the foreseeable future. For this reason the Directors continue 
to adopt the going concern basis. 
Dividends
Having considered the resources needed to invest in new product 
development, the Board believes that it is in the Group’s best interests 
not to pay a dividend for the year.
Potential litigation – update
Mr Bridge’s application for permission to appeal against the judgement 
His Honour Judge Hodge QC made on 17 June 2015 in respect of his 
application to pursue a derivative action against certain Directors 
of the Company was dismissed by Lord Justice Kitchin at the hearing 
on 20 April 2016. Lord Justice Kitchin came to the firm conclusion that 
Mr Bridge’s appeal would not have a real prospect of success on any 
of the grounds put forward. There is no further route of appeal available 
to Mr Bridge. 
As previously reported in the RNS announcement made on 18 June 2015, 
at the hearing on 17 June 2015 His Honour Judge Hodge QC also ordered 
Mr Bridge to pay the costs of both the Company and the Directors. 
Enforcement of those costs was stayed pending the outcome of Mr Bridge’s 
application for permission to appeal to the Court of Appeal. That application 
was dismissed on 20 April 2016, with the result that the stay on enforcement 
has been lifted. The Company is therefore now taking steps to recover the 
costs that it has incurred in relation to this matter.
On behalf of the Board
Andy Weatherstone
Chief Financial Officer
8 June 2016
The strategic report set out on pages 1 to 21 was approved by the Board 
of Directors on 8 June 2016 and signed on its behalf by:
Keith Daley
Chairman
8 June 2016 Elektron Technology plc 22 Annual Report and Accounts 2016 Corporate governance
BOARD OF DIRECTORS AND COMPANY SECRETARY
Keith Daley (61)
Executive Chairman
Appointed to the Board in 2004 and as Chairman 
in 2008, Keith originally trained as a corporate 
banker. He is an experienced serial entrepreneur 
and Chairman with a strong sales and marketing 
focus. He has bought, invested in, managed and 
sold numerous businesses over the past 30 years.
Keith takes primary responsibility for Checkit 
and IMC line management as well as functional 
responsibility for HR, marketing and legal. He leads 
on all corporate finance transactions such as 
acquisitions and disposals.
Peter Welch (53)
Non-executive Director
Appointed to the Board in September 2015, 
Peter has spent the majority of his career in the 
insurance industry and held a number of senior 
roles at Hiscox plc (a FTSE 250 company) for 
15 years until 2005. In 2006 he was one of the 
three founders of N+1 Singer Capital Markets, 
a SmallCap institutional stockbroking business 
with a focus on a number of sectors, including 
technology. In addition to Elektron he is a 
Director of Entertainment Insurance Partners.
John Wilson (40)
Chief Executive Officer
Appointed to the Board in August 2010 and as 
Chief Executive in December 2010, John originally 
joined Elektron Technology in March 2008 as 
Technical Director. Prior to this he had spent his 
career in senior management positions in the UK 
and North America as well as consulting for a 
world-leading technology consultancy.
John takes primary responsibility for Connectivity 
line management as well as functional responsibility 
for Technology and New Product Development. 
He takes the lead on sales outside the UK and 
spends a significant amount of time overseas.
Giovanni Ciuccio (35)
Non-executive Director
Appointed to the Board in September 2015, 
Giovanni is currently employed as an investment 
analyst/portfolio manager at D&A Income Limited, 
which is a principal shareholder in Elektron. 
Giovanni trained as a Chartered Accountant 
in South Africa, starting his career with KPMG 
before moving into investment banking at 
Barclays Bank Plc and investment management 
thereafter. Giovanni has extensive experience 
in capital markets, structured finance and 
valuation. Giovanni is also a CFA charter holder.
Andrew “Andy” Weatherstone (52)
Chief Financial Officer
Appointed to the Board in January 2015, 
Andy is a Chartered Accountant with 
approaching 20 years’ experience at main 
board level within the small UK public quoted 
companies sector. He initially developed his 
career with KPMG before moving into industry 
where he has built up significant experience 
in both financial and operational management 
of global-based manufacturing.
Andy leads the finance function and, in addition, 
takes functional responsibility for IT and takes the 
lead on Connectivity operations.
Martin Reeves (62)
Company Secretary
Appointed as Company Secretary in 2010, 
Martin has held senior company secretarial 
positions at Martin Currie Investment Management, 
Resolution PLC, Haysmacintyre and the Morgan 
Crucible Co PLC.
As Secretary to the Board, he is responsible 
for the Group’s governance and compliance 
framework and advising the Board on all 
governance and legal matters. Elektron Technology plc 23 Annual Report and Accounts 2016 Corporate governance
REPORT OF THE DIRECTORS
The Directors present their Annual Report on the affairs of the Group 
together with the audited financial statements for the year ended 
31 January 2016.
Principal activity
Elektron Technology is a global business that designs, manufactures and 
markets products that connect, monitor and control. Further details of the 
performance of the business is set out in the Strategic report on pages 1 
to 21. The principal activity of the Company is that of a holding company.
The Directors are not aware, at the date of this report, of any likely major 
changes in the Group’s activities during the next year, other than the 
disposal of its Agar business.
The subsidiaries of the Group as at 31 January 2016 are listed in Note 14.
Results and dividends
There was a profit for the year after taxation of £0.6m (2015: £0.2m).
No interim dividend was paid in the year (2015: nil pence per share). 
The Directors are not recommending the payment of a final dividend 
(2015: nil pence per share).
Research and development
The continual advancement of technology and processes by the Group 
means costs are incurred each year in research and development. The 
Directors consider that research and development continues to play a 
vital role in maintaining and increasing the Group’s competitive position 
in the market. Details are set out in Note 12 to the financial statements.
Health, safety and environment
The Group recognises and accepts its responsibilities for health and 
safety and is committed to achieving the highest practicable standards 
in health and safety management for all its operations to safeguard its 
employees, customers and the local community.
The Group is committed to the care of the environment and the 
maintenance of environmental controls as they relate to the business 
and aims to ensure that its activities comply at all times with relevant 
environmental legislation.
Directors and their interests
Biographical details of the current Directors are set out on page 22 
and details of Directors’ beneficial interests in the shares of the Company 
as at 31 January 2016 are set out in the Remuneration report on 
pages 26 to 31.
As last year, the Board is following best practice recommendations 
and, accordingly, the whole Board will be offering itself for re-appointment 
or appointment as appropriate. 
Share capital
As at the date of this report, the total number of shares in issue 
(being ordinary shares of 5 pence each) is 186,100,851.
During the year, the Company did not issue any ordinary shares of 5 pence 
each (2015: 66,574,586 shares).
Details of the share capital are given in Note 21 to the financial statements.
Charitable and political donations
The Group made no political contributions (2015: £Nil) and no charitable 
donations (2015: £Nil) during the year.
Employees
The Group has human resources policies designed to meet the needs 
of its Group companies and employees around the world. Recognition is 
given to individual employees’ needs and requirements and employees 
are encouraged to apply their skills, knowledge and energy. The Group 
recognises the importance of its employees and their training.
The Group is committed to equality of opportunity for all, regardless of gender, 
race, age, disability, religion or sexual orientation, where it is reasonable and 
practicable within existing legislation. This applies equally to recruitment and 
to the promotion, development and training of staff. The Group recognises 
that the needs of the business will continue to change. As such, training is 
and will continue to be offered such that employees are able to enhance 
their skill base to assist the business in meeting future challenges.
The Group continues to keep its staff informed on matters affecting them 
as employees and on the various factors affecting the performance of the 
Group. This is achieved through formal and informal meetings. At each 
of our main sites, an employee forum has been established.
Substantial shareholdings
As at the date of this report, the Company was aware, or has been notified 
in accordance with chapter 5 of the Disclosure Transparency Rules, of the 
following interests of 3% or more in its issued ordinary share capital: 
D&A Income Limited 24.13%
Mr J Kinder 15.71%
Mr K Daley
1
9.42%
Elektron Technology 2012 Employee Benefit Trust 8.10%
Mr and Mrs N Slater 6.10%
Mr A Perloff and Panther Securities Plc 4.92%
1 Excluding JSOP interests.
The Company’s website, www.elektron-technology.com, provides updated 
information on substantial shareholdings.
Corporate governance statement
The Company is listed on AIM and is not required to comply with 
the provisions of the UK Corporate Governance Code 2014 (“2014 Code”). 
However, the Directors recognise the importance of, and accordingly 
support, the principles of good corporate governance as contained 
within the 2014 Code and apply these where they consider they are 
appropriate to the Group.
Directors
(i) The Board
The Board currently comprises the Executive Chairman, two other 
Executive Directors and two Non-executive Directors. Brief biographical details 
of the Directors appear on page 22. These illustrate the level and range of 
business experience which the Board believes enables it to provide clear and 
effective leadership of the Group. The composition of the Board is reviewed 
regularly. Appropriate training, briefings and induction information 
is available to all Directors on appointment and subsequently, as necessary,  Elektron Technology plc 24 Annual Report and Accounts 2016 Corporate governance
REPORT OF THE DIRECTORS CONTINUED
Directors continued
(i) The Board continued
taking into account existing qualifications and experience. New Directors 
are subject to election by shareholders at the first Annual General Meeting 
(AGM) after their appointment. 
The Board meets formally at least six times each year and more 
frequently where business needs require. The Board receives reports 
from the Executive Directors and business unit and functional heads 
ensuring matters are considered fully and enabling Directors to discharge 
their duties properly. The Board has a schedule of matters reserved to it 
for decision and the requirement for Board approval on those matters is 
known to senior management within the Group. This includes subjects 
such as material capital and revenue commitments, business acquisitions 
and disposals, health and safety and appointments to the boards 
of subsidiary companies.
There is an agreed procedure whereby Directors wishing to take independent 
professional advice in furtherance of their duties may do so, if necessary, 
at the Group’s expense.
In addition, each Director has access to the services of the Company Secretary. 
The Secretary is charged by the Board with ensuring that all Board procedures 
are followed and relevant regulations are complied with.
(ii) Executive Chairman and Chief Executive
The division of responsibilities between the Executive Chairman 
and the Chief Executive is clearly established and understood.
The Board operates with a number of Board Committees.
(iii) Audit, Remuneration and Nominations Committees
Peter Welch chairs the Audit Committee, the Nominations Committee 
and the Remuneration Committee.
The Audit Committee consists of the Non-executive Directors. 
The Executive Directors are encouraged to attend Audit Committee 
meetings where possible as part of the programme to maintain the 
Group’s systems of internal controls. Part of each meeting is held with 
the external auditor without the Executive Directors being present. 
The Audit Committee considers the adequacy and effectiveness of the 
risk management and control systems of the Group and reports the 
results to the Board. It reviews the scope and results of the external audit, 
its cost effectiveness and the objectivity of the auditor. The Committee 
also reviews the annual financial statements, the interim statement, the 
preliminary announcement and other financial announcements prior 
to their approval by the Board, together with accounting policies and 
compliance with accounting standards and internal control procedures. 
The Audit Committee report is on pages 32 and 33.
The Nominations Committee consists of the Non-executive Directors 
and the Chairman of the Board and reviews the structure, size and composition 
of the Board and its Committees. It identifies and nominates suitable 
candidates to the Board and gives full consideration to succession planning 
for Directors and other senior executives, and keeps under review the 
leadership needs of the organisation.
The Remuneration Committee, which comprises the Non-executive Directors, 
determines and agrees with the Board the framework and policy of executive 
remuneration packages, including bonuses, incentive payments, share 
options or awards and pension arrangements. The remuneration of the 
Non-executive Directors is agreed by the Board. The Remuneration report 
is on pages 26 to 31.
The terms of reference for each of the Board Committees are available 
on request from the Company Secretary.
(iv) Supply of information
To enable the Board to perform its duties effectively and allow Directors 
to discharge their responsibilities, full and timely access is given to all 
relevant information.
The agenda for regular Board meetings includes a Chief Executive Officer’s 
report and a report from the Chief Financial Officer together with documents 
regarding specific matters.
(v) Appointments to the Board
The role of the Nominations Committee is to review and make 
recommendations on all appointments to the Board.
(vi) Re-appointment
Any Director appointed during the year is required, in accordance with 
the Company’s Articles of Association (the Articles), to retire and seek 
appointment by shareholders at the next AGM. The Articles also require 
that one-third, but not more than one-third, of the Directors retire by 
rotation each year and seek re-appointment at the AGM. The Directors 
required to retire will be those who have been longest in office since their 
last appointment or re-appointment and the date for determination of the 
number of Directors will not be earlier than 28 days prior to the date 
of the Notice of AGM. However, ahead of the AGM in 2014 the Board took 
the decision to follow best practice recommendations for larger fully 
listed companies and, consequently, the whole Board will be seeking 
re-appointment at the forthcoming AGM.
Directors’ remuneration
Details of Directors’ remuneration are contained in the Remuneration 
report on pages 26 to 31.
Directors’ indemnities
The Company has granted indemnities to each of its Directors in respect 
of all losses arising out of or in connection with the execution of their 
powers, duties and responsibilities as Directors to the extent permitted 
by the Companies Act 2006 and the Company’s Articles of Association. 
Such qualifying third party indemnity provision remains in force at the 
date of approving the Directors’ report. In addition, Directors and officers 
of the Company and its subsidiaries are covered by directors’ and officers’ 
liability insurance.
Communication with shareholders
(i) Dialogue
The Group recognises the importance of constructive communication 
with its shareholders to ensure its strategy and performance are understood. 
This is achieved principally through the Group’s Interim Report, Annual Report 
and AGM. In addition, a range of corporate information is available to investors 
on the Group’s website. Elektron Technology plc 25 Annual Report and Accounts 2016 Corporate governance
(ii) Use of the Annual General Meeting
All shareholders have the opportunity to raise questions at the 
Company’s AGM. In view of the low number of attendees at general 
meetings, the Board does not make formal business presentations 
but instead allows time for informal discussion after the conclusion 
of formal proceedings.
Accountability and audit
(i) Internal financial control
The Board has overall responsibility for the Group’s system of internal 
financial control, which is designed to provide reasonable, but not absolute, 
assurance against material misstatement or loss.
The key procedures that are in place are:
 » a comprehensive budgeting system, including reviews at operating 
unit level, and formal reviews and approvals of the annual budget 
by the Directors;
 » monitoring of actual results and comparison to budget for each 
operating unit on a monthly basis;
 » a clearly defined organisation structure within which individual 
responsibilities are identified and can be monitored; and
 » defined procedures for the appraisal, review and authorisation 
of capital and major revenue and development expenditure.
(ii) Financial reporting
It is the Board’s responsibility to present a balanced assessment of the 
Group’s position and prospects. The respective responsibilities of the 
Directors and the auditor in connection with these financial statements 
are explained on pages 34 and 35.
Auditor and disclosure of information to auditor
The Directors who held office at the date of approval of this Directors’ 
report confirm that, so far as they are each aware there is no relevant 
audit information of which the Group’s auditor is unaware and each Director 
has taken all the steps that he ought to have taken as a Director to make 
himself aware of any relevant audit information and to establish that the 
Group’s auditor is aware of that information. This confirmation is given 
and should be interpreted in accordance with Section 418 of the 
Companies Act 2006.
Deloitte LLP has indicated its willingness to continue in office as auditor 
and a resolution concerning its re-appointment will be proposed at the 
forthcoming AGM.
Annual General Meeting
The Company’s AGM will be held on 28 July 2016. Accompanying this 
Annual Report and Accounts is a letter from the Chairman and a Notice 
of AGM that sets out the resolutions to be considered and approved 
at the meeting.
On behalf of the Board
Martin Reeves
Company Secretary
8 June 2016
Registered number
448274 Elektron Technology plc 26 Annual Report and Accounts 2016 Corporate governance
REMUNERATION REPORT
Dear Shareholder
I am pleased to present our 2016 Remuneration report, which has been 
prepared by the Committee and approved by the Board. Shareholders will 
be invited to approve this report at the forthcoming Annual General Meeting.
The workload of the Remuneration Committee was particularly heavy 
this year and I should like to thank my fellow Committee member, 
Giovanni Ciuccio, for his significant contribution.
You will see in the following table our approach to the key elements of the 
remuneration of the Executive Directors. Once again the basic salaries for 
the Executive Directors have not been increased. Exceptional performance 
will be rewarded through the proposed new Long Term Incentive Plan (NL TIP) 
(following a proposed unwind of the previous Joint Share Ownership Plan 
(JSOP)) and the annual bonus scheme. Much work was done last year by 
both me and Giovanni and our predecessors in establishing the overall 
package for the Executive Directors and I am pleased to say that major 
shareholders representing over 50% of the issued share capital support 
these proposals.
We shall continue to benchmark director packages against market 
norms, using external advice as appropriate.
Companies with securities listed on AIM are not required to comply with 
either The Large and Medium-sized Companies and Groups (Accounts 
and Reports) (Amendment) Regulations 2013 or the UKLA Listing Rules. 
However, the Remuneration Committee is committed to maintaining 
high standards of corporate governance and open communication with 
shareholders and has applied the regulations and guidelines as far as 
is practical given the current size and development of the Group.
Should any shareholder wish to discuss the Remuneration report with 
me, I can be contacted via the Company Secretary at the Company’s 
registered office: Broers Building, JJ Thomson Avenue, Cambridge 
CB3 0FA or by email: martin.reeves@elektron-technology.com.
Unaudited information
The independent auditor is not required to audit and has not, except where 
indicated, audited the information included in the Remuneration report. 
The audited information meets the remuneration disclosure requirements 
of Rule 19 of the AIM Rules for Companies.
Composition and role of the Remuneration Committee
The Remuneration Committee consists only of the Non-executive Directors. 
During the financial year ended 31 January 2016, its members were Ric Piper 
and T ony Harris, both of whom served until 10 September 2015, and Peter Welch 
and Giovanni Ciuccio, both of whom served from 10 September 2015. 
None of the Committee has had any personal financial interest (other than 
as shareholders) or conflicts of interests arising from cross-directorships 
or day-to-day involvement in running the business. The Committee is 
responsible for setting policy on Directors’ remuneration and for determining 
the individual remuneration packages of the Group’s Executive Directors.
The Committee is also responsible for considering management proposals 
for remuneration and employment terms for the Group’s senior staff, including 
arrangements for bonus payments and long-term incentive plans, and for 
all staff where the issue of equity is involved.
Executive Directors’ remuneration policy
The Group’s remuneration policy is designed to motivate, retain 
and attract Directors and senior executives of the high calibre necessary 
for a business with Elektron’s complexity, international scope and ambitions, 
and to ensure that their interests are closely aligned with those of shareholders. 
The Remuneration Committee actively reviews the Group’s remuneration 
structure, seeking independent advice where appropriate, to ensure that 
it is designed to deliver this policy efficiently and effectively, balancing 
this with the need to obtain value for money for the Group. In addition this 
review ensures that the balance between fixed and variable remuneration 
is appropriate.
A remuneration policy table for the Executive Directors is set out opposite 
showing how the Remuneration Committee intends the policy to operate 
for the period until the Company’s next Annual General Meeting in 2017.
Peter Welch
Chairman of the Remuneration Committee Elektron Technology plc 27 Annual Report and Accounts 2016 Corporate governance
REMUNERATION ELEMENT, 
PURPOSE AND LINK TO STRATEGY OPERATION MAXIMUM OPPORTUNITY PERFORMANCE METRICS
Basic salary
To pay competitive basic salaries 
to attract, retain and motivate 
the talent required to operate and 
develop the Group’s businesses 
and to develop and deliver the 
Group’s strategy. 
Basic salaries are reviewed 
on an annual basis.
Salary increases in practice are expected 
to be limited.
In exceptional circumstances, at the 
Committee’s discretion, increases of a 
higher amount may be made, taking into 
account individual circumstances such 
as alignment to market level and if it is 
necessary for the recruitment and/or 
retention of an Executive Director.
None, although the 
overall performance 
of the individual will be taken 
into consideration by the 
Committee when reviewing 
and setting salary levels.
Pension
To provide an opportunity for 
Executives to build up income 
on retirement.
All Executive Directors are eligible 
to participate in the Group Personal 
Pension Scheme, or to receive a 
contribution to self-invested personal 
pension schemes or to receive 
a payment in lieu of the above.
10% of basic salary, or equivalent paid 
as salary.
Not applicable.
Benefits
To provide market-competitive, 
non-cash benefits.
Executive Directors receive 
benefits that consist primarily 
of car allowance, income protection 
in the event of long-term ill health, 
private family healthcare insurance 
and death-in-service benefits.
Benefits may vary by role and are set 
at levels which the Committee considers 
to be sufficient based on the role and 
individual circumstances.
Not applicable.
Annual Bonus Plan based on current year performance
To incentivise and reward strong 
performance against annual 
financial targets, thus delivering 
value to shareholders.
See further notes below.
The Remuneration Committee 
intends that the bulk of any increase 
in annual cash remuneration 
should come as a result of this 
bonus scheme.
Financial performance targets 
are typically set in the first quarter 
of the financial year.
The Committee then assesses actual 
audited performance compared to 
those performance targets following 
the completion of the financial year 
and determines the bonus payable 
to each individual. Bonus payments 
may be delivered in cash or 
shares at the Remuneration 
Committee’s discretion.
The plan is reviewed annually.
For the Executive Directors, on-target 
performance shall not exceed 30% of basic 
salary and maximum performance shall 
not normally exceed 120% of basic salary.
The Committee shall have discretion 
to pay higher levels of bonuses in the 
case of exceptional performance.
Performance is determined by 
the Committee on an annual 
basis by reference to specific 
profit and other targets.
Long Term Incentive Plan (L TIP) arrangements
To drive sustained long-term 
performance that supports the 
creation of shareholder value.
See further notes below.
Awards are designed to 
provide a meaningful reward to 
Executive Directors linked to the 
long-term success of the business. 
A new plan is proposed 
as detailed below.
One-off JSOP awards and share appreciation 
rights were made in 2012 (see notes below). 
This scheme will be wound up.
A new plan is proposed as detailed below.
The Executive Chairman will not participate 
in the new L TIP arrangements.
The new L TIP detailed 
below relies on multiple 
performance targets.
Company Share Option Plan (CSOP)
To drive sustained long-term 
performance that supports the 
creation of shareholder value.
See further notes below.
Option grants are made from time 
to time at the Committee’ s discretion.
Any aggregate outstanding CSOP awards 
made to a participant may not relate to 
shares with value(s) at time of grant(s) 
exceeding £30,000, the limit approved 
by HM Revenue & Customs (HMRC).
Vesting of options is subject 
to a vesting period of at least 
three years and continued 
employment. If no entitlement 
has been earned at the end 
of the relevant performance 
period, awards will lapse. Elektron Technology plc 28 Annual Report and Accounts 2016 Corporate governance
Notes 
Annual bonus plan
Bonuses are not contractual and remain at the discretion of the 
Remuneration Committee. 
2015/16
Last year the bonus plan was predicated on the achievement 
of an aggregated Connectivity and IMC audited operating profit target 
after annual bonuses of £3.3m. In addition to the bonuses payable to 
John Wilson and Andy Weatherstone, we have agreed to make a discretionary 
bonus payment to Keith Daley, to be the same as John Wilson’s, to recognise 
his contribution to an excellent underlying result for the business in this 
financial year. Payment to Keith will be conditional on this Remuneration 
report being approved by shareholders.
Details of amounts payable are contained in the table shown later 
in this report.
2016/17
The bonus plan for the year to 31 January 2017 (FY2016/17) for Keith Daley, 
John Wilson and Andy Weatherstone is based on the achievement of certain 
profit targets detailed below. 
For FY2016/17 the structure of the bonus plan has been modified to include 
the Checkit business given its increasing importance to the overall Group 
performance. In addition, as Keith Daley will not participate in the new L TIP 
arrangements, the Remuneration Committee proposes that he participate 
in the annual bonus plan, conditional on this Remuneration report being 
approved by shareholders.
A bonus will be paid if the audited operating profit before tax after adding 
back (a) profit/(loss) on sale of assets, (b) amortisation of intangibles and 
(c) share incentive costs but after the cost of the annual bonus of the Group, 
exceeds £0.74m, reflecting an increase of 10% over the reported profit on 
the same basis for the year to 31 January 2016 (FY2015/16) of £0.67m after 
deducting the contribution of specifically identified discontinued or lost 
business. The Remuneration Committee recognises that the aggregate 
profit number is small and is attributable to the sum of profitable established 
businesses, specifically Connectivity and IMC, and the losses incurred by 
promising new businesses, particularly Checkit. Accordingly, the Remuneration 
Committee has reduced the annual bonus as compared to last year. 
Under the terms of the plan John Wilson, Keith Daley and Andy Weatherstone 
will share in a bonus pool of £0.13m to be shared 39%, 39% and 22% 
respectively. This would result in a bonus of 25.4%, 25.4% and 16.4% of 
basic salary for each of John Wilson, Keith Daley and Andy Weatherstone, 
respectively, for reaching the minimum target. The bonus pool would then 
increase on a pro-rata straight line basis to £0.4m (to be shared on the 
same basis as noted above) for an audited operating profit as defined 
above in excess of the minimum level up to a maximum level of £2m. 
This would result in maximum bonuses of 78%, 78% and 51% of Keith Daley’s, 
John Wilson’s and Andy Weatherstone’s basic pay, respectively. Should profits 
exceed this level then any further bonus payments would be at the absolute 
discretion of the Remuneration Committee. 
Long Term Incentive Plans
The current Remuneration Committee inherited the JSOP scheme which 
we have sought to replace with the NL TIP building on the previous scheme 
and enhancing it with features we feel we can more readily support. 
The NL TIP , developed in close consultation with the largest shareholders, 
we feel more closely aligns the interests of management with those of 
shareholders. The focus is on total cash generation and total shareholder 
return over a three-year period. The NL TIP is limited to John Wilson and 
Andy Weatherstone who do not currently have significant shareholdings 
in the Company (noting that Keith Daley will not participate in the new 
scheme). The old L TIP (i.e. JSOP) awards will be unwound. 
These arrangements are supported by over 50% of shareholders.
The following details the proposed unwind of the JSOP and terms of the 
new NL TIP .
Long Term Incentive Plan
Unwind of the JSOP
The existing JSOP awards take the form of interests in shares (including 
voting rights) in the Company that are jointly owned by the trustee (the 
Trustee) of the Elektron Technology 2012 Employee Benefit Trust (EBT) 
and the relevant participant. The participants were also granted stock 
appreciation rights which are linked to their joint ownership interests. 
Keith Daley and John Wilson invested approximately £65,000 in 
aggregate to acquire their joint ownership interest.
The JSOP awards, which, if unexercised, were scheduled to unwind 
in 2022, will be unwound with the agreement of the Trustee and all 
of the participants. The Trustee will be requested to purchase all the joint 
ownership interests held by each participant for a consideration of one 
ordinary share in the Company for every four jointly held shares held 
by the participant, subject to an external valuation. The linked stock 
appreciation rights will also lapse. 
Purchase of shares from the EBT
Keith Daley, John Wilson, one other shareholder and the Trustee of the 
EBT are currently considered to be in a concert party under Rule 9 of the 
Takeover Panel Rules. This limits their individual ability to freely purchase 
shares in the open market but not from other concert party members. 
The Remuneration Committee considers it is desirable that Directors 
demonstrate their belief in the Company by buying shares. Accordingly, 
it is proposed that Keith Daley and John Wilson be permitted to acquire 
from the Trustee at any time, at the higher of the mid-market price at 
close of business on the immediately preceding dealing day or 5 pence, 
a maximum of 3,541,500 shares and 2,941,500 shares respectively.
The Trustee currently holds 15,075,650 shares. Following the unwind 
of the JSOP , 12,683,650 shares will remain outstanding, of which 6,483,000 
will be available for Keith Daley and John Wilson to acquire in this way.
REMUNERATION REPORT CONTINUED Elektron Technology plc 29 Annual Report and Accounts 2016 Corporate governance
New L TIP
John Wilson and Andy Weatherstone will each receive awards equivalent 
to 5m and 2.5m Elektron Technology plc shares respectively. Each will only 
benefit to the extent that the share price exceeds 10 pence, and the awards 
will vest after the financial year 31 January 2019 (the Performance End Period) 
if the following performance hurdles are met:
(a)  the consolidated cash balances exceed £8m after adding back any 
cash distributions paid to shareholders and deducting all consolidated 
group financial liabilities including net working capital liabilities per 
the audited accounts; and 
(b)  the share price (plus any cumulative cash distribution paid to 
shareholders before the Performance End Period) is (i) greater than 
15 pence but less than 17.5 pence (in which case 75% of the allocation 
vests), (ii) greater than 17.5 pence but less than 20 pence (in which case 
85% of the allocation vests), and (iii) greater than 20 pence (in which 
case 100% of the allocation vests). The share price for these purposes 
will be a 90-day volume weighted average measured from the date the 
audited accounts for the Performance End Period are announced. 
Vesting will be triggered earlier (irrespective of condition (a) above being 
met) if cumulative cash distributions have been made to shareholders 
before the end of the Performance End Period equal to the hurdles 
mentioned in (b) above (i.e. if there are 15 pence of cumulative cash 
distributions per share, then 75% of the award vests etc.). 
Awards will also vest early in the case of certain corporate transactions, 
including a takeover of the Company.
The major differences between the NL TIP and old JSOP are as follows:
 » The participants in the NL TIP (unlike the JSOP) will have no voting 
rights in Elektron Technology plc until the awards vest and the 
participants receive Company shares.
 » Keith Daley will not participate and Andy Weatherstone will participate. 
The reverse was the case with the JSOP .
 » The NL TIP contains two vesting criteria (including a cash hurdle) 
whereas the JSOP was based on a single target price.
 » Under the NL TIP the participants will only benefit to the extent that the 
share price exceeds 10 pence (being a 90% increase in the share price 
at the date of writing this report). Under the JSOP scheme, including 
the stock appreciation rights, the award was capable of vesting if a target 
price of 17.8 pence (if adjusted to take account of the 2014 placing) 
was met.
The awards will be structured under a tax-advantaged Employee 
Shareholder Shares (ESS) scheme where shares in Elektron Technology 
UK Limited (ETUK), a wholly owned subsidiary, will be issued to each of 
John Wilson and Andy Weatherstone. If the performance hurdles are met, 
the participants can put vested ETUK shares to the Company or Trustee 
for an amount determined by reference to the sum of (i) any cumulative cash 
distributions made by the Company to the Performance Period End plus (ii) 
the 90-day volume weighted Elektron Technology plc share price immediately 
prior to the date of exercise of the put less (iii) the 10 pence hurdle. 
Such amount can be paid in Company shares (or in cash if so determined 
by the Remuneration Committee). If the performance hurdles are not met 
the ETUK shares will be acquired by the Company at no cost. Any Company 
shares received by participants must be retained until 31 January 2021 
(subject to an ability to sell sufficient Company shares to cover any tax 
liabilities arising from the award).
The awards will be forfeited if the participant ceases employment before 
the end of the Performance End Period other than for agreed good leaver 
reasons. Malus and clawback provisions also apply. In the event of sale 
of all or substantially all of the assets or 75% of the shares in the Company 
the awards will vest in full noting the participants will only benefit from 
any increase in value over 10 pence per share. 
Company Share Option Plan (CSOP)
The Company operates a tax-advantaged Company Share Option Plan 
(CSOP) for Executives, up to the £30,000 individual limit under the relevant 
regime. No new awards under the CSOP were made to Directors during the 
year. Keith Daley and John Wilson both allowed their interests under this 
plan to lapse as from 8 July 2015. The Directors’ interests under the CSOP 
as at 31 January 2015 and 2016 are set out in the table below.
Directors’ interests in approved 
options over ordinary shares 
of 5 pence each
Exercise
period
Option
price
No. of options
at 31 January
2016
No. of options
at 31 January
2015
Keith Daley 2014–2021 38.0p — 78,000
John Wilson 2014–2021 38.0p — 78,000
Total — 156,000
As part of the overall remuneration package for Andy Weatherstone, the 
Committee has agreed to award him a CSOP option to acquire ordinary 
shares in the Company with a value of £30,000 (measured at grant), 
which will be awarded as soon as practicable.
Employment contracts
All Executive Directors are employed on service contracts terminable 
on six months’ notice by the Company or the Director.
Approach to recruitment or appointment of executive directors 
The Committee shall exercise discretion to award remuneration outside 
of the scope of the Executive Directors’ policy table to an individual 
whose appointment to the Company as an Executive Director is being 
contemplated by the Committee in exceptional circumstances and where 
the interests of the Group require an exception to be made in order to 
secure the recruitment successfully.
Non-executive Directors
All Non-executive Directors serve under letters of appointment that either 
party can terminate on one month’s written notice. Their remuneration is 
determined by the Board within the limits set by the Articles of Association 
and is based on information on fees paid in similar companies and the skills and 
expected time commitment of the individual concerned. The Non-executive 
Directors receive no remuneration or benefits in kind other than their basic 
fees and are not eligible for any equity-based incentive schemes. Elektron Technology plc 30 Annual Report and Accounts 2016 Corporate governance
REMUNERATION REPORT CONTINUED
Total emoluments and the single figure of total remuneration
Emoluments for the Executive Directors and Non-executive Directors are set out below. The figures below represent emoluments earned as Directors 
during the relevant financial year. Such emoluments are paid in the same financial year, with the exception of bonuses, which may be paid in the year 
following that in which they are earned but are charged in the year to which they relate.
Audited information
Year to 31 January 2016
Basic pay
£’000
Benefits
1
£’000
Bonuses
£’000
Total
£’000
Pension
contribution
2
£’000
Severance
£’000
L TIPs vested/
options
exercised in
 the year
£’000
Single figure
of total
remuneration
£’000
Executive Directors
Keith Daley 200 12 77 289 20 — — 309
John Wilson 200 12 77 289 20 — — 309
Andy Weatherstone 175 12 51 238 16 — — 254
Non-executive Directors
Ric Piper (resigned 10 September 2015) 29 — — 29 — 12 — 41
Tony Harris (resigned 10 September 2015) 22 — — 22 — 9 — 31
Giovanni Ciuccio (appointed 10 September 2015) 8 — — 8 — — — 8
Peter Welch (appointed 10 September 2015) 14 — — 14 — — — 14
Total 2016 648 36 205 889 56 21 — 966
1 Benefits include car or car allowance, fuel and private medical insurance for Directors and dependants.
2 Includes payments made in lieu of pension contributions.
Year to 31 January 2015
Basic pay
3
£’000
Benefits
1
£’000
Bonuses
£’000
Total
£’000
Pension
contribution
2
£’000
Severance
£’000
L TIPs vested/
options
exercised in
 the year
£’000
Single figure
of total
remuneration
£’000
Executive Directors
Keith Daley 200 12 — 212 20 — — 232
John Wilson 200 27 — 227 20 — — 247
Andy Weatherstone 181 9 — 190 15 — — 205
Non-executive Directors
Ric Piper 48 — — 48 — — — 48
Tony Harris 30 — — 30 — — — 30
Total 2015 659 48 — 707 55 — — 762
1 Benefits include car or car allowance, fuel and private medical insurance for Directors and dependants. In April 2014 John Wilson received a one-off payment of £12,500 
as compensation for receiving a car allowance in lieu of a fully expensed company car with effect from that date.
2 Includes payments made in lieu of pension contributions.
3 Basic pay of Andy Weatherstone included fees paid to A&JW Management Services Limited, a company of which he is a beneficial owner, prior to him becoming a permanent 
member of the Board on 4 April 2014, which amounted to £35,000 in 2015.
Messrs Daley and Weatherstone elected to take payments in lieu of company pension contributions during the year. Messrs Piper and Harris received 
a payment of three months’ fees in lieu of notice per their letters of appointment, upon resignation of office on 10 September 2015.
The emoluments of the highest paid Director were £289,000 (2015: £227,000) and, in addition, the Group made pension contributions or payments 
in lieu of pension contributions of £20,000 (2015: £20,000). Elektron Technology plc 31 Annual Report and Accounts 2016 Corporate governance
The annual basic pay for each of the Directors at the year end and as at the date of this report is listed below, together with the date of last increase:
Basic pay at
date of report
£’000
2016
£’000
2015
£’000
Last
increased
Keith Daley 200 200 200 April 2010
John Wilson 200 200 200 February 2011
Andy Weatherstone 175 175 175 —
Giovanni Ciuccio (appointed 10 September 2015) 20 — — —
Peter Welch (appointed 10 September 2015) 36 — — —
Directors’ share ownership
The shares owned by the Directors serving at 31 January 2016, including their interests in shares via the JSOP which are jointly held with the Trustee 
of the trust, are shown below:
Shares owned
outright at
31 January 
2015
 or date of
appointment
Shares owned
outright at
31 January 
2016
JSOP
interests at
31 January
 2015
and 
2016
Total at
31 January 
2015 
or date of
 appointment
Total at
31 January
 2016
Executive Directors
Keith Daley 17,530,016 17,530,016 4,722,000 22,252,016 22,252,016
John Wilson 35,661 35,661 3,922,000 3,957,661 3,957,661
Andy Weatherstone 50,000 50,000 — 50,000 50,000
Non-executive Directors
Giovanni Ciuccio — 13,500 — — 13,500
Peter Welch — 150,000 — — 150,000
Total 17,615,677 17,779,177 8,644,000 26,259,677 26,423,177
On 14 September 2015, Peter Welch acquired 150,000 ordinary shares in the Company. On 28 September 2015, Giovanni Ciuccio acquired 
13,500 ordinary shares in the Company.
Savings-related Share Option Scheme
Directors’ interests on options over ordinary shares of 5 pence each 
under the Elektron Technology savings-related Share Option Scheme 2012
Exercisable
from
Option
price
No. of
options at
 31 January
2015
No. of
options at
31 January 
2016
Keith Daley July 2016 8.8p 102,272 102,272
John Wilson July 2016 8.8p 102,272 102,272
Total 204,544 204,544
Amounts payable to outside advisers in respect of Directors’ remuneration
Independent remuneration consultant MM&K Limited was formally engaged by the Committee and provided advice on directors’ remuneration and 
employee share plans to the Committee in 2015/16. Eversheds LLP provided legal advice to the Company in respect of employee share plans in 2015/16. 
Total advisers’ fees charged during 2015/16 in respect of advice on employee incentive matters and services to the Committee amounted to £61,000. 
Approval
This report was approved by the Board of Directors on the date shown below and signed on its behalf by:
Peter Welch
Chairman of the Remuneration Committee
8 June 2016 Elektron Technology plc 32 Annual Report and Accounts 2016 Corporate governance
This report describes the membership and operation of the 
Audit Committee.
The Audit Committee consists only of independent Non-executive Directors. 
Peter Welch is the current Chairman. During the financial year ended 
31 January 2016 its members were Ric Piper and Tony Harris, both of whom 
served until 10 September 2015, and Peter Welch and Giovanni Ciuccio, 
both of whom served from 10 September 2015.
Key responsibilities
 » Monitoring the integrity of the half-yearly and annual financial statements 
and formal announcements relating to the Group’s financial performance;
 » reviewing significant financial reporting issues and accounting policies 
and disclosures in financial reports;
 » reviewing the effectiveness of the Group’s internal control procedures 
and risk management systems;
 » considering how the Group’s internal audit requirements shall be satisfied 
and making recommendations to the Board;
 » making recommendations to the Board on the appointment or 
re-appointment of the Group’s independent external auditor;
 » a review of the independent auditor’s audit strategy and implementation 
plan and its findings in relation to the annual report and half-year report;
 » overseeing the Board’s relationship with the independent auditor, 
including their continuing independence and, where appropriate, 
the selection of a new independent auditor; and
 » ensuring that an effective whistleblowing procedure is in place.
The Board considers that Giovanni Ciuccio and Peter Welch have recent 
and relevant financial experience.
The Committee met three times during the year. The independent auditor 
attended all of the meetings and the Committee met privately with the 
independent auditor during the year.
Operation of the Committee
The Committee’s terms of reference were reviewed and updated 
in January 2016 to conform to current best practice. No significant 
changes were deemed necessary. They are available on request from 
the Company Secretary.
The terms of reference will be next reviewed by January 2018.
The main activities of the Committee during the year were as follows:
Oversight of financial reporting
The Committee acts in an oversight role in respect of the Annual Report 
and announcements with financial content that is prepared by executive 
management. The Committee received reports on the annual and interim 
financial statements from the external auditor who attended its meetings. 
The auditor’s report, including a summary of key areas of audit focus, is set 
out on page 35.
Peter Welch
Chairman of the Audit Committee
AUDIT COMMITTEE REPORT Elektron Technology plc 33 Annual Report and Accounts 2016 Corporate governance
The Committee’s work also included reviewing the financial statements, 
key finance policies, including accounting, tax and treasury and significant 
issues of judgement, detailed as follows:
 » Impairment of goodwill and intangibles arising from acquisitions
We considered the value of the acquired intangibles and whether, given 
the future prospects of these businesses, the value remains appropriate.
The Committee reviewed the assumptions and calculations used by 
management in the assessment of any impairment of acquired intangible 
assets and agreed that no impairment charges were required.
 » Impairment of capitalised development costs
We considered the level of capitalised development costs held in the Group’ s 
balance sheet and whether, given the future prospects of the products 
being developed, the value of these capitalised costs remained appropriate.
The Committee reviewed the assumptions and calculations used by 
management in the assessment of any impairment of the capitalised 
development costs and agreed that no impairment charges were required.
 » Inventory valuation
The Committee reviewed the judgements applied to standard costing 
valuations and provisions against excess and obsolete inventory and 
concurred with management’s assessment.
In addition the Committee reviewed the appropriateness of costs 
disclosed as non-recurring or special items and the appropriateness 
of the recognition of deferred taxation, further details on these are 
disclosed in Notes 4 and 15 respectively.
The main activities of the Committee during the year were as follows:
 » Internal financial control systems
The Committee reviewed the recommendations made by the 
independent auditor and management’s responses and actions. 
The Committee was satisfied that it was appropriate for the Board 
to make the statements regarding internal controls included in the 
Report of the Directors and the Directors’ responsibilities statement.
 » Internal audit
The Committee undertook its annual review and proposed to the 
Board, which agreed, that it was not appropriate for the Group to 
undertake formal internal audit activities during the year.
The Chairman of the Committee reported to the Board on the 
Committee’s activities after each meeting, identifying relevant matters 
requiring communication to the Board and recommendations on the 
steps to be taken.
Independent auditor
The appointment of the independent external auditor is approved by 
shareholders annually. The independent auditor’s audit of the financial 
statements is conducted in accordance with International Standards on 
Auditing, ISA (UK and Ireland) issued by the Auditing Practices Board.
The independent auditor, with Julian Rae as Senior Statutory Auditor, 
provides the following services:
 » a report to the Audit Committee giving an overview of the results, 
significant contracts and judgements and observations on the control 
environment; and
 » an opinion on the truth and fairness of the Group and Company accounts.
The Audit Committee monitors the cost-effectiveness of audit and non-audit 
work performed by the independent auditor and also considers the potential 
impact, if any, of this work on independence. Approval is required prior to the 
independent auditor commencing any material non-audit work in accordance 
with a Group policy approved by the Committee. Certain work, such as 
providing bookkeeping services, is prohibited.
The Audit Committee also regulates the appointment of former employees 
of the independent auditor to positions in the Group. The Audit Committee 
regularly reviews all fees for non-audit work paid to the independent auditor. 
Details of these fees can be found in Note 4 to the financial statements.
The Committee concluded that the level of non-audit fees, which represented 
17% (2015: 28%) of the audit fees for the Group, did not have a negative 
impact on Deloitte LLP’s independence.
The independent auditor also operates procedures designed to safeguard 
their objectivity and independence. These include the periodic rotation 
of audit partner, use of independent concurring partners, use of a technical 
review panel (where appropriate) and annual independence confirmations 
by all staff. The independent auditor reports to the Committee on matters 
including independence and non-audit work on an annual basis.
Evaluation of the Committee
No evaluation of the Committee was undertaken during the year.
Approval
This report was approved by the Committee, on behalf of the Board, 
on the date shown below and signed on its behalf by:
Peter Welch
Chairman of the Audit Committee
8 June 2016 Elektron Technology plc 34 Annual Report and Accounts 2016 Corporate governance
The Directors are responsible for preparing the Annual Report and the 
financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for 
each financial year. Under that law the Directors are required to prepare 
the Group financial statements in accordance with International Financial 
Reporting Standards (IFRSs) as adopted by the European Union and 
Article 4 of the IAS Regulation and have elected to prepare the parent 
company financial statements in accordance with United Kingdom 
Generally Accepted Accounting Practice (United Kingdom Accounting 
Standards and applicable law), including FRS 101 “Reduced Disclosure 
Framework” . Under company law the Directors must not approve the 
accounts unless they are satisfied that they give a true and fair view of the 
state of affairs of the Company and of the profit or loss of the Company 
for that period.
In preparing the parent company financial statements, the Directors 
are required to:
 » select suitable accounting policies and then apply them consistently;
 » make judgements and accounting estimates that are reasonable 
and prudent;
 » state whether applicable UK Accounting Standards have been followed, 
subject to any material departures disclosed and explained in the 
financial statements; and
 » prepare the financial statements on the going concern basis unless it is 
inappropriate to presume that the Company will continue in business.
In preparing the Group financial statements, International Accounting 
Standard 1 requires that Directors:
 » properly select and apply accounting policies;
 » present information, including accounting policies, in a manner that 
provides relevant, reliable, comparable and understandable information;
 » provide additional disclosures when compliance with the specific 
requirements in IFRSs are insufficient to enable users to understand 
the impact of particular transactions, other events and conditions 
on the entity’s financial position and financial performance; and
 » make an assessment of the Group’s ability to continue as a going concern.
The Directors are responsible for keeping adequate accounting records 
that are sufficient to show and explain the Group’s transactions and disclose 
with reasonable accuracy at any time the financial position of the Group 
and enable them to ensure that the financial statements comply with the 
Companies Act 2006. They are also responsible for safeguarding the assets 
of the Group and hence for taking reasonable steps for the prevention 
and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the 
corporate and financial information included on the Group’s website. 
Legislation in the United Kingdom governing the preparation and 
dissemination of financial statements may differ from legislation 
in other jurisdictions.
Directors’ responsibilities statement
We confirm that to the best of our knowledge:
 » the financial statements, prepared in accordance with the relevant 
financial reporting framework, give a true and fair view of the assets, 
liabilities, financial position and profit or loss of the Company and the 
undertakings included in the consolidation taken as a whole;
 » the Strategic report includes a fair review of the development and 
performance of the business, the position of the Company and the 
undertakings included in the consolidation taken as a whole, together 
with a description of the principal risks and uncertainties that it 
faces; and
 » the Annual Report and financial statements, taken as a whole, is fair, 
balanced and understandable and provides the information necessary 
for shareholders to assess the Company’s performance, business model 
and strategy.
By order of the Board
John Wilson
Chief Executive Officer
Andy Weatherstone
Chief Financial Officer
8 June 2016
DIRECTORS’ RESPONSIBILITIES STATEMENT Elektron Technology plc 35 Annual Report and Accounts 2016 Financial statements
INDEPENDENT AUDITOR’S REPORT
to the members of Elektron Technology plc
We have audited the financial statements of Elektron Technology plc for the year ended 31 January 2016, which comprise the consolidated statement 
of comprehensive income, the consolidated and parent Company balance sheets, the consolidated statement of changes in equity, the consolidated 
statement of cash flows and the related Notes 1 to 28 and Notes 1 to 17 for the Company.
The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law and International Financial 
Reporting Standards (IFRSs) as adopted by the European Union. The financial reporting framework that has been applied in the preparation of the parent 
company financial statements is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 
including FRS 101 “Reduced Disclosure Framework” .
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has 
been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other 
purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members 
as a body for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and auditor
As explained more fully in the Directors’ responsibilities statement, the Directors are responsible for the preparation of the financial statements and for being satisfied 
that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law 
and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial 
statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are 
appropriate to the Group’s and the parent company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness 
of significant accounting estimates made by the Directors; and the overall presentation of the financial statements. In addition, we read all the financial 
and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information 
that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we 
become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements
In our opinion:
 » the financial statements give a true and fair view of the state of the Group’s and of the parent company’s affairs as at 31 January 2016 and of the Group’s 
profit for the year then ended;
 » the Group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union;
 » the parent company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
 » the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Separate opinion in relation to IFRSs as issued by the IASB
As explained in Note 1 to the Group financial statements, the Group, in addition to complying with its legal obligation to apply IFRSs as adopted 
by the European Union, has also applied IFRSs as issued by the International Accounting Standards Board (IASB).
In our opinion the Group financial statements comply with IFRSs as issued by the IASB.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Strategic report and the Directors’ report for the financial year for which the financial statements are prepared 
is consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
 » adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches 
not visited by us; or
 » the parent company financial statements are not in agreement with the accounting records and returns; or
 » certain disclosures of Directors’ remuneration specified by law are not made; or
 » we have not received all the information and explanations we require for our audit.
Julian Rae (Senior Statutory Auditor)
For and on behalf of Deloitte LLP
Chartered Accountants and Statutory Auditor 
Cambridge, United Kingdom
8 June 2016 Elektron Technology plc 36 Annual Report and Accounts 2016 Financial statements
 Notes
2016
£m
2015
£m
Revenue 2 43.3 44.4
Cost of sales (27.2) (28.6)
Gross profit 16.1 15.8
Operating expenses
Operating expenses (excluding non-recurring or special items
1
) 3 (14.9) (14.1)
Operating profit before non-recurring or special items 1.2 1.7
Non-recurring or special items 4 (0.3) (1.2)
Total operating expenses 3 (15.2) (15.3)
Operating profit 4 0.9 0.5
Finance costs 5 (0.1) (0.3)
Profit before taxation 0.8 0.2
Taxation 8 (0.2) —
Profit for the period 0.6 0.2
Other comprehensive expense
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations — (0.2)
Total comprehensive income/(expense) for the financial year attributable to equity shareholders 0.6 —
Earnings per share from continuing operations
Basic and diluted EPS 10 0.4p 0.1p
Adjusted and diluted adjusted EPS
2
10 0.5p 1.0p
1 See Note 1 to financial statements for definition.
2 Before non-recurring and special items.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
year ended 31 January 2016 Elektron Technology plc 37 Annual Report and Accounts 2016 Financial statements
CONSOLIDATED BALANCE SHEET
as at 31 January 2016
Notes
2016
£m
2015
£m
Assets
Non-current assets
Capitalised R&D 12 4.3 3.5
Other intangible assets 12 1.8 2.3
Property, plant and equipment 13 2.7 2.8
Total non-current assets 8.8 8.6
Current assets
Inventories 16 5.7 5.4
Trade and other receivables 17 6.9 6.8
Cash and cash equivalents 0.6 0.6
Total current assets 13.2 12.8
Total assets 22.0 21.4
Current liabilities
Trade and other payables 18 7.2 6.8
Borrowings 19 1.9 1.0
Current portion of long-term borrowings 19 0.3 1.3
Current tax payable 0.2 —
Provisions 20 0.5 0.2
Total current liabilities 10.1 9.3
Non-current liabilities
Long-term borrowings 19 — 1.0
Long-term provisions 20 0.3 0.2
Total non-current liabilities 0.3 1.2
Total liabilities 10.4 10.5
Net assets 11.6 10.9
Equity attributable to the owners of the Company
Called up share capital 21 9.3 9.3
Share premium 21 5.4 5.4
Merger reserve 21 1.1 1.1
Capital redemption reserve 21 0.2 0.2
Own shares 21 (3.5) (3.5)
Other reserves 21 0.8 0.7
Translation reserve 21 (0.8) (0.8)
Retained earnings 21 (0.9) (1.5)
Total equity 11.6 10.9
The financial statements of Elektron Technology plc (registered no. 448274) were approved by the Board of Directors on 8 June 2016 and were signed on its 
behalf by:
Keith Daley Andy Weatherstone
Director  Director Elektron Technology plc 38 Annual Report and Accounts 2016 Financial statements
Share
capital
£m
Share
premium
£m
Merger
reserve
£m
Capital
redemption
reserve
£m
Own
shares 
1
£m
Other
reserves
£m
Translation
reserve
£m
Retained
earnings
£m
Total
£m
At 1 February 2014 6.0 5.4 1.1 0.2 (3.5) 0.5 (0.6) (1.7) 7.4
Profit for the period — — — — — — — 0.2 0.2
Other comprehensive income — — — — — — (0.2) — (0.2)
Total comprehensive  
(expense)/income for the year — — — — — — (0.2) 0.2 —
Share issue 3.3 — — — — — — — 3.3
Credit to equity for  
share-based payments — — — — — 0.2 — — 0.2
At 31 January 2015 9.3 5.4 1.1 0.2 (3.5) 0.7 (0.8) (1.5) 10.9
Profit for the period — — — — — — — 0.6 0.6
Total comprehensive  
income for the year — — — — — — — 0.6 0.6
Credit to equity for  
share-based payments — — — — — 0.1 — — 0.1
At 31 January 2016 9.3 5.4 1.1 0.2 (3.5) 0.8 (0.8) (0.9) 11.6
1 The Treasury shares are held by the Elektron Technology 2012 EBT .
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
year ended 31 January 2016 Elektron Technology plc 39 Annual Report and Accounts 2016 Financial statements
Notes
2016
£m
2015
£m
Net cash inflow from operating activities 6 3.8 3.5
Investing activities
Purchase of property, plant and equipment 13 (0.8) (0.5)
Purchase of other intangible assets 12 (2.1) (1.1)
Proceeds from the sale of property, plant and equipment 0.2 0.1
Net cash used in investing activities (2.7) (1.5)
Financing activities
Proceeds from ordinary share issue — 3.3
Decrease in bank loans (0.9) (5.2)
Payment of hire purchase and finance liabilities (0.2) (0.3)
Net cash used in financing activities (1.1) (2.2)
Net decrease in cash and cash equivalents — (0.2)
Cash and cash equivalents at the beginning of the period 0.6 0.8
Cash and cash equivalents at the end of the period 0.6 0.6
CONSOLIDATED STATEMENT OF CASH FLOWS
year ended 31 January 2016 Elektron Technology plc 40 Annual Report and Accounts 2016 Financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
year ended 31 January 2016
General information
Elektron Technology plc (the “Group” or “Elektron”) is a public limited liability company incorporated in England and Wales and domiciled in the UK. 
The address of its registered office is Broers Building, JJ Thomson Avenue, Cambridge CB3 0FA. The nature of the Group’s operations and its principal 
activities are set out in the Report of the Directors on pages 23 to 25.
These financial statements are presented in Sterling, the currency of the primary economic environment in which the Group operates, and all values are 
rounded to the nearest hundred thousand (£0.1m) except where otherwise stated. Foreign operations are included in accordance with the accounting 
policies set out in Note 1.
1. Summary of significant accounting policies
The particular accounting policies adopted by the Directors in the preparation of these consolidated financial statements are described below:
Basis of accounting
The consolidated financial statements of Elektron Technology plc have been prepared in accordance with International Financial Reporting Standards 
(IFRSs). The financial statements have also been prepared in accordance with IFRSs adopted by the European Union and therefore the Group financial 
statements comply with Article 4 of the EU IAS Regulation.
The consolidated financial statements have been prepared on the historical cost basis, except for the revaluation of financial instruments. The principal 
accounting policies adopted are set out below. These policies have been applied consistently to all years presented, unless otherwise stated.
Adoption of new and revised standards
In the current year, the Group has applied a number of amendments to IFRSs and a new interpretation issued by the International Accounting Standards 
Board (IASB) that are mandatorily effective for an accounting period that begins on or after 1 January 2015. Their adoption has not had any material impact 
on the disclosures or on the amounts reported in these financial statements.
 » Amendments to IAS 19 “Defined Benefit Plans: Employee Contributions”
 » Annual Improvement 2010–2012 Cycle
 » Annual Improvement 2011–2013 Cycle
Amendments to IAS 19 “Defined Benefit Plans: Employee Contributions” – amends IAS 19 Employee Benefits to clarify the requirements that relate to how 
contributions from employees or third parties that are linked to service should be attributed to periods of service. In addition, it permits a practical expedient 
if the amount of the contributions is independent of the number of years of service, in that contributions can, but are not required to, be recognised as a 
reduction in the service cost in the period in which the related service is rendered.
Annual improvements 2010–2012 Cycle 
Makes amendments to the following standards:
IFRS 2 – Amends the definitions of “vesting condition” and “market condition” and adds definitions for “performance condition” and “service condition”
IFRS 3 – Requires contingent consideration that is classified as an asset or a liability to be measured at fair value at each reporting date
IFRS 8 – Requires disclosure of the judgements made by management in applying the aggregation criteria to operating segments, clarification 
of reconciliations of segment assets only required if segment assets are reported regularly
IFRS 13 – Clarify that issuing IFRS 13 and amending IFRS 9 and IAS 39 did not remove the ability to measure certain short-term receivables and payables 
on an undiscounted basis (amends basis for conclusions only)
IAS 16 and IAS 38 – Clarify that the gross amount of property, plant and equipment is adjusted in a manner consistent with a revaluation of the 
carrying amount
Standards not affecting the reported results nor the financial position
At the date of authorisation of these financial statements, the following standards and interpretations which have not been applied in these financial 
statements were in issue but not yet effective (and in some cases had not yet been adopted by the EU):
IFRS 9 “Financial Instruments”
IFRS 15 “Revenue from Contracts with Customers”
The Directors do not expect that the adoption of the standards listed above will have a material impact on the financial statements of the Group 
in future periods.
IFRS 16 “Leases”
The Directors are yet to assess the full impact of this standard which requires leases to recognise assets and liabilities unless the lease is twelve months 
or less or the underlying asset has a low value. It is expected that a significant proportion of leases currently accounted for as operating leases would be 
expected to be recognised as assets with a corresponding liability under IFRS 16. Elektron Technology plc 41 Annual Report and Accounts 2016 Financial statements
1. Summary of significant accounting policies continued
Critical accounting judgements and key sources of estimation uncertainty
The preparation of the financial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect 
the application of policies and reported amounts in the financial statements. The areas involving a higher degree of judgement or complexity, or areas 
where assumptions or estimates are significant to the financial statements are:
Critical accounting judgements:
 » the classification of non-recurring or special items (Note 4): in line with the way the Board and chief operating decision maker reviews the business, 
non-recurring or special items are separately identified. Management has defined and reports such items as restructuring and site closure costs, costs 
associated with acquisitions, amortisation of acquired intangible assets, share-based payments and other non-recurring and non-operating items; and
 » the capitalisation of development costs (Note 12): internally generated intangible assets arising from development are recognised if, and only if, 
all of the conditions required by IAS 38 “Intangible Assets” have been demonstrated.
Sources of estimation uncertainty:
 » the recoverability of internally generated intangible assets (Note 12): at each balance sheet date, the Group reviews the carrying amounts of its internally 
generated intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. Estimated future cash flows 
deriving from these assets must be determined and an appropriate discount rate applied to calculate present value;
 » the estimation of the deferred income tax asset (Note 15): deferred taxation assets are recognised for subsidiaries with a past history of profitable trends 
where there is persuasive and reliable evidence in the form of management accounts and financial projections that taxable profits are anticipated;
 » the estimation of the net realisable value of inventory (Note 16): a provision is made to write down slow-moving and obsolete items to net realisable 
value, based on an assessment of technological and market developments and an analysis of historic and projected usage of quantities on hand; and
 » the estimation of the cost of restructuring activities, dilapidations and the estimation of the provision for product rectification (Note 20).
Going concern
The Group’s business activities, together with the factors likely to affect its future development, performance and position are set out in the Chairman’s statement 
and the Chief Executive Officer’s statement on pages 4 to 7. The principal risks and uncertainties facing the business are described on pages 16 to 18. 
The Financial review on pages 19 to 21 gives details of the Group’s principal banking facilities.
The Directors have prepared and reviewed current cash flow projections for a period not less than twelve months from the approval of the Annual Report. 
These projections take account of reasonably possible changes in trading performance, borrowing facilities and forecast covenant compliance. In the event, 
should actual performance fall below the current forecast levels in this period, the Group has a number of mitigating factors available to it and the Board 
has the required monitoring and controls in place in order to be able to put the necessary actions in place if they see a need to do so.
The Directors have no reason to believe that any of the existing borrowing facilities might be withdrawn or that there would be any other material change 
in the current financial projections of the Group. As a result the Directors have formed a judgement when approving the financial statements that there is 
a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason, the Directors 
continue to adopt the going concern basis in preparing the financial statements.
Consolidation
The consolidated financial statements incorporate the financial statements of Elektron Technology plc and all subsidiary undertakings drawn up to 
31 January each year. Subsidiaries are all entities over which the Group has the power to control the financial and operating policies so as to obtain 
benefit from their activities. The results of businesses acquired during the year are included from the effective date of acquisition. The results of businesses 
discontinued during the year are included until the date of disposal. Business combinations are accounted for using the purchase method. Balances 
between Group companies are eliminated and no profit is taken on intra-group sales.
Business combinations
Acquisitions of subsidiaries and businesses are accounted for using the purchase method. The consideration for each acquisition is measured at the 
aggregate of the fair value (at the date of exchange) of assets given, liabilities incurred or assumed, equity instruments issued and cash paid by the Group 
in exchange for control of the acquiree. Acquisition related costs are recognised in the statement of comprehensive income as incurred.
Where a business combination is achieved in stages, the Group’s previously held interests in the acquired entity are remeasured to fair value at the 
acquisition date.
The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 (2008) “Business Combinations” 
are recognised at their fair value at the acquisition date. Elektron Technology plc 42 Annual Report and Accounts 2016 Financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
year ended 31 January 2016
1. Summary of significant accounting policies continued
Goodwill
Goodwill arises on the acquisition of subsidiaries and represents any excess of cost of the acquired entity over the Group’s interest in the fair value 
of the entity’s identifiable assets and liabilities acquired and is capitalised as a separate item. Goodwill is recognised as an intangible asset.
Under the business combination exemption of IFRS 1, goodwill previously capitalised or written off to reserves under UK GAAP is not recycled 
to the statement of comprehensive income on calculating a gain or loss on disposal.
Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. For the purpose of impairment testing, goodwill is 
allocated to each of the Group’s cash generating units expected to benefit from the synergies of the combination. Cash generating units to which goodwill has 
been allocated are tested for impairment annually, or more frequently where there is an indication that the unit may be impaired. If the recoverable amount 
of the cash generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill 
allocated to the unit and then to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit. An impairment loss 
recognised for goodwill is not reversed in a subsequent period. Impairment losses are recognised in the statement of comprehensive income.
Negative goodwill, representing the amount by which the net fair value of the assets and liabilities of an acquired business exceeds the acquisition cost, 
is in accordance with IFRS 3, recognised in the statement of comprehensive income in the year of acquisition.
Other intangible assets
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
An internally generated intangible asset arising from the Group’s development is recognised only if all of the following conditions are met:
 » an asset is created that can be identified (such as software and new processes);
 » it is probable that the asset created will generate future economic benefits; and
 » the development cost of the asset can be measured reliably.
The cost of acquiring software (including associated implementation costs where applicable) that is not specific to an item of property, plant and equipment 
is classified as an intangible asset.
Other intangible assets that are separately acquired by the Group are stated at fair value. The category of other intangible assets also includes marketing, 
customer and technology related assets arising from the acquisition of Hartest Holdings plc recognised at fair value.
Amortisation of intangible assets is charged on a straight line basis over the estimated useful lives of intangible assets determined on an asset-by-asset basis. 
The estimated useful lives are as follows:
 »Computer software     3–10 years
 » Marketing, customer and technology related assets  10–20 years
 »Development costs     4 years
Government grants
Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions attaching to them and that 
the grants will be received.
Government grants relating to property, plant and equipment and intangible assets are treated as deferred income and released to profit or loss over 
the expected useful lives of the assets concerned.
Property, plant and equipment
The cost of property, plant and equipment is their purchase cost, together with any incidental costs of acquisition. Depreciation is calculated on the cost 
of each property, plant and equipment asset individually on a straight line basis and is designed to write off the costs of the assets less any residual value 
over their estimated useful lives. The estimated useful lives are:
 » Plant, equipment and tools     3–15 years
 »Motor vehicles      4 years
 »Fixtures and fittings     8–16 years
 » Leasehold improvements     Term of the lease
Reviews are made periodically of the estimated remaining lives of individual productive assets, taking account of commercial and technological obsolescence 
as well as normal wear and tear. The carrying value is reviewed for impairment in the period if events or changes in circumstances indicate the carrying 
value may not be recoverable. Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets. Elektron Technology plc 43 Annual Report and Accounts 2016 Financial statements
1. Summary of significant accounting policies continued
Impairment of tangible and intangible assets excluding goodwill
The carrying amount of the Group’s assets is reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such 
indication exists, the assets’ recoverable amount is estimated.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted 
to their present value. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount is reduced to its recoverable 
amount with the impairment loss recognised as an operating expense immediately.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so 
that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for 
the asset in prior years. A reversal of an impairment loss is recognised as income immediately.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost comprises all direct expenditure and, where appropriate, production overheads 
based on the normal level of activity. Where necessary, provision is made for obsolete, slow moving and defective stocks. Cost is calculated using the first-in, 
first-out method. Net realisable value represents the estimated selling price less all estimated costs to completion.
Employee benefits
Pensions to employees are provided through defined contribution plans.
A defined contribution plan is a pension plan under which the Group pays fixed contributions to an independent entity. The Group has no legal 
obligations to pay further contributions after payment of the fixed contribution.
The contributions recognised in respect of defined contribution plans are expensed as they fall due. Liabilities and assets may be recognised if 
underpayment or prepayment has occurred and are included in current liabilities or current assets as they are normally of a short-term nature.
Share-based employee remuneration
The Group’s management awards certain employee incentives from time to time on a discretionary basis and through its Company Share Option Plan 
(CSOP) and its Joint Share Ownership Plan (JSOP).
In accordance with IFRS 2 “Share-based Payment” , the Group reflects the economic cost of awarding shares and share options to employees by recording 
an expense in the statement of comprehensive income equal to the fair value of the benefit awarded, fair value being estimated using the Black-Scholes 
option pricing model. The expense is recognised in the statement of comprehensive income over the vesting period of the award. Equity-settled share-based 
payments to employees, and others providing similar services, are measured at the fair value of the equity instruments at the grant date. The fair value 
excludes the effect of non-market based vesting conditions. Details regarding the determination of the fair value of equity-settled share-based transactions 
are set out in Note 21. For the shares and share options awarded by the Group to employees of subsidiary undertakings using the Company’s equity 
instruments, the fair value of the equity instruments is recognised as a capital contribution to the Company’s subsidiary undertakings over the vesting 
period. The capital contribution is reduced by any payments received from subsidiary undertakings in respect of these share-based payments.
Share capital
(a) Treasury shares
Where the Group purchases its own equity share capital (Treasury shares) the consideration paid, including any directly attributable incremental costs 
(net of taxes), is deducted from equity attributable to the Company’s shareholders until the shares are cancelled, reissued or disposed of.
(b) Trust shares
The Elektron Technology 2012 Employee Benefit Trust (“EBT”) uses funds provided by the Group to meet the Group’s obligations under the employee 
share option plans and the JSOP . All shares acquired by EBT are purchased on the open market or, in the case of the JSOP shares, may be issued directly 
to EBT at the then market value. Where the Group holds its own equity shares through EBT , these shares are shown as a reduction in equity; consideration 
paid or received is shown in the reconciliation of equity movements and no gain or loss is recognised within the consolidated income statement or the 
statement of comprehensive income on the purchase, sale, issue or cancellation of these shares.
Leases
In accordance with IAS 17 “Leases” , the economic ownership of a leased asset is transferred to the lessee if they bear substantially all the risks and rewards 
related to the ownership of the leased asset. The related asset is recognised at the time of inception of the lease at the fair value of the leased asset or, if lower, 
the present value of the lease payments plus incidental payments, if any, to be borne by the lessee. A corresponding amount is recognised as a finance 
leasing liability.
Subsequent accounting for assets held under finance lease agreements, i.e. depreciation methods and useful lives, correspond to those applied to comparable 
acquired assets. The corresponding finance leasing liability is reduced by lease payments less finance charges, which are expensed to finance costs. 
Finance charges represent a constant periodic rate of interest on the outstanding balance of the finance lease liability.
All other leases are treated as operating leases. Payment on operating lease agreements is recognised as an expense on a straight line basis over the lease 
term. Associated costs, such as maintenance and insurance, are expensed as incurred. Elektron Technology plc 44 Annual Report and Accounts 2016 Financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
year ended 31 January 2016
1. Summary of significant accounting policies continued
Financial liabilities/assets
The Group’s financial liabilities are overdrafts, revolving credit and invoice discounting facilities, trade and other payables and finance leasing liabilities. 
They are included in the balance sheet line items “borrowings” , “long-term borrowings” and “trade and other payables” .
Financial liabilities are recognised when the Group becomes party to the contractual arrangements of the instrument.
All interest related charges are recognised as an expense in “finance cost” in the statement of comprehensive income.
Finance lease liabilities are measured at initial value less the capital element of lease repayments.
Trade payables are stated at their amortised cost.
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when the Group 
provides goods directly to a debtor. Receivables are subsequently measured at amortised cost using the effective interest method, less provision for impairment. 
Any change in their value through impairment or reversal of impairment is recognised in the statement of comprehensive income.
Provision against trade receivables is made when objective evidence is received that the Group will not be able to collect all amounts due to it in accordance 
with the original terms of those receivables. The amount of the write down is determined as the difference between the asset’s carrying amount and the 
present value of estimated future cash flows.
Equity instruments
Share capital is determined using the nominal value of shares that have been issued. Equity-settled share-based employee remuneration is credited 
to other reserves until the related equity instruments are realised by the employee.
Cash and cash equivalents
Cash and cash equivalents comprise cash and short-term bank deposits with an original maturity of three months or less, net of outstanding bank 
overdrafts and include cash at bank and in hand and bank deposits available at less than 24 hours’ notice. Bank overdrafts and invoice discounting 
advances are presented as current liabilities to the extent that there is no right of offset with cash balances. The carrying value of these assets is 
approximately equal to their fair value.
Accounting for taxes
Current tax assets and/or liabilities comprise those obligations to, or claims from, fiscal authorities relating to the current or prior reporting period that are 
unpaid at the balance sheet date. They are calculated according to the tax rates and tax laws applicable to the fiscal periods to which they relate, based 
on the taxable profit for the year.
Where an item of income or expense is recognised in the statement of comprehensive income, any related tax generated is recognised as a component 
of tax expense in the statement of comprehensive income. Where an item is recognised directly to equity and presented within the statement of comprehensive 
income, any related tax generated is treated similarly.
Deferred taxation
Deferred taxation is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial 
statements and corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method.
Deferred taxation liabilities are generally recognised on all taxable temporary differences. Deferred taxation assets are recognised to the extent that it is 
probable that taxable profits will be available against which deductible temporary differences can be utilised.
Deferred taxation is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised based on tax laws 
and rates that have been enacted at the balance sheet date. The carrying value of deferred taxation assets is reviewed at each balance sheet date and 
reduced to the extent that it is no longer probable that sufficient taxable profits will be available against which taxable temporary differences can be 
utilised. Deferred tax is charged or credited to the statement of comprehensive income, except when it relates to items charged or credited directly to 
equity, in which case the deferred tax is also dealt with in equity.
Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the Group’s activities. 
Revenue is shown net of value-added tax, returns, rebates and discounts and after eliminating sales within the Group. 
The Group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity 
and when specific criteria have been met for the Group’s activities as described below. The amount of revenue is not considered to be reliably measurable 
until all contingencies relating to the sale have been resolved. The Group bases its estimates on historical results, taking into consideration the type 
of customer, the type of transaction and the specifics of each arrangement.
The Group manufactures and sells a range of engineered products to industrial markets. Sales of goods are recognised when a Group entity has despatched 
products to the customer, the customer has full discretion over the use of the components and there is no unfulfilled obligation that could affect the 
customer’s acceptance of the products. Delivery does not occur until the risks of obsolescence and loss have been transferred, and either the products 
have been accepted in accordance with the sales contract, the acceptance provisions have lapsed, or the Group has objective evidence that all criteria 
for acceptance have been satisfied. Elektron Technology plc 45 Annual Report and Accounts 2016 Financial statements
1. Summary of significant accounting policies continued
Revenue recognition continued
Service revenue is recognised at the point at which the service is provided to the customer. Maintenance and support revenue is recognised proportionally 
on a straight line basis over the life of the contract.
In respect of fee-based subscription services, when the Group sells hardware and a subscription in one bundled transaction, the total consideration from 
the arrangement is allocated to each element based on their relative fair values. The amount of revenue the Group recognises for delivered elements is limited 
to the cash received.
Foreign currencies
The individual financial statements of each Group company are presented in the currency of the primary economic environment in which it operates 
(its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each Group company are 
expressed in Sterling, which is the functional currency of the Group and the presentation currency for the consolidated financial statements.
In preparing the financial statements of the individual companies, transactions in currencies other than the entity’s functional currency (foreign currencies) 
are recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date, monetary assets and liabilities that are 
denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Non-monetary items carried at fair value that are 
denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are 
measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences arising on the settlement of monetary items and on the retranslation of monetary items are included in profit or loss for the period. 
Exchange differences arising on the retranslation of non-monetary items carried at fair value are included in profit or loss for the period except for differences 
arising on the retranslation of non-monetary items in respect of which gains and losses are recognised directly in equity. For such non-monetary items, 
any exchange component of that gain or loss is also recognised directly in equity.
For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations are translated at exchange 
rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the period, unless exchange 
rates fluctuate significantly during that period, in which case the exchange rates at the date of transactions is used. Exchange differences arising, if any, 
are classified as equity and transferred to the Group’s translation reserve. Such translation differences are recognised as income or as expenses in the 
period in which the operation is disposed of.
Provisions
Provisions are recognised when the Group has a present obligation as a result of a past event and it is probable that the Group will be required to settle 
that obligation.
Financial risk management
The Group’s multinational operations and debt financing expose it to a variety of financial risks. In the course of its business, the Group is exposed 
to foreign currency risk, interest rate risk, liquidity risk and credit risk. Financial risk management is an integral part of the way the Group is managed. 
Financial risk management policies are set by the Board. Further details are included in the Report of the Directors.
The Group does not hold or use derivative financial instruments.
(i) Foreign currency risk
Foreign currency risk arises both where sale or purchase transactions are undertaken in currencies other than the respective functional currencies 
of Group companies (transactional exposures) and where the results of overseas companies are consolidated into the Group’s reporting currency 
of Sterling (translational exposures). The Group has overseas operations that record their results in different local functional currencies. In countries 
where the Group does not have operations, it frequently has some customers or suppliers that transact in a foreign currency. The Group is therefore 
exposed to the changes in foreign currency exchange rates between a number of different currencies, but the Group’s primary exposures relate to 
the US Dollar, Euro and Tunisian Dinar.
The Group’s policy is not to hedge its exposure using financial instruments, but to mitigate exposure by natural hedges.
The Group’s translational exposures to foreign currency risks can relate both to the statement of comprehensive income and net assets of overseas 
subsidiaries. The Group’s policy is not to hedge the translational exposure that arises on consolidation of the statements of comprehensive income 
of overseas subsidiaries.
(ii) Interest rate risk
Interest rate risk arising from borrowing at variable rates is not hedged.
(iii) Liquidity risk
Liquidity risk represents the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to managing this 
risk is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, 
without incurring unacceptable losses or risking damage to the Group’s reputation. The Group manages this risk by maintaining adequate committed 
lines of funding. The undrawn facilities committed to the Group as at 31 January 2016 are set out in Note 25. Elektron Technology plc 46 Annual Report and Accounts 2016 Financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
year ended 31 January 2016
1. Summary of significant accounting policies continued
Financial risk management continued
(iv) Credit risk
Credit risk arises because a counterparty may fail to perform its obligations. The Group is exposed to credit risk on financial assets such as cash balances, 
trade and other receivables.
The Group’s credit risk is primarily attributable to its trade receivables. The amounts recognised in the balance sheet are net of appropriate allowances 
for doubtful receivables, estimated by the Group’s management based on prior experience and its assessment of the current economic environment. 
Trade receivables are subject to credit limits and control and approval procedures in the operating companies. Due to its large geographic base and 
number of customers, the Group is not exposed to material concentrations of credit risk on its trade receivables.
Credit risk associated with cash balances is managed by transacting with financial institutions with high quality credit ratings. Accordingly, the Group’s 
associated credit risk is limited. The Group has no significant concentration of credit risk.
The Group’s maximum exposure to credit risk is represented by the carrying amount of each financial asset in the Group balance sheet.
Capital management
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share options are recognised 
as a deduction from equity, net of any tax effects.
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development 
of the business.
Details of share-based payments are disclosed in Note 21.
The Board seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the advantages 
and security afforded by a sound capital position.
From time to time the Group purchases its own shares in the market; the timing of these purchases depends on market prices. Buy and sell decisions 
are made on a specific transaction basis by the Board.
There were no changes to the Group’s approach to capital management during the year.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
Non-GAAP measure
These financial statements contain references to operating profit before non-recurring or special items. This financial measure does not have any standardised 
meaning prescribed by IFRS and is therefore referred to as a non-GAAP measure. The non-GAAP measure used by the Company may not be comparable 
to similar measures used by other companies.
The definition of operating profit before non-recurring or special items is set out earlier in this Note (critical accounting judgements and key sources 
of estimation uncertainty). The Board believes that this is a useful supplemental metric as it provides an indication of the results generated by the Company’s 
principal business activities prior to consideration of how the results are impacted by one-time exceptional charges or how the results are affected by the 
accounting standards associated with the Group’s share-based payment expense.
2. Segmental reporting
The Group has continued to adopt the provisions of IFRS 8 “Operating Segments” and historically shown summary information in respect of these segments. 
This segmentation is consistent with internal reports to the chief operating decision maker for use in assessing business performance and allocating Group 
resources. The chief operating decision maker is the Chief Executive of the Group. The activity of each segment is explained in the Review of performance 
and strategic update.
Segment revenues and results of continuing operations
Segment revenue
Operating profit/(loss)
before non-recurring
or special items Operating profit/(loss)
2016
£m
2015
£m
2016
£m
2015
£m
2016
£m
2015
£m
Connectivity 25.8 25.8 3.8 2.9 3.6 2.2
Instrumentation, Monitoring and Control (IMC) 17.3 18.4 (0.4) (0.5) (0.5) (1.0)
Total Connectivity and IMC 43.1 44.2 3.4 2.4 3.1 1.2
Checkit 0.2 0.2 (2.2) (0.7) (2.2) (0.7)
Total 43.3 44.4 1.2 1.7 0.9 0.5
Finance costs (net) (0.1) (0.3)
Profit before tax 0.8 0.2
Revenue reported above represents revenue generated from external customers.
The accounting policies of the reportable segments are the same as the Group’s accounting policies described in Note 1. Elektron Technology plc 47 Annual Report and Accounts 2016 Financial statements
2. Segmental reporting continued
Segment profit represents the profit earned by each segment, including a share of central administration costs, which is allocated on the basis of actual 
use or pro rata to sales. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment 
of segment performance.
Segment assets
2016
£m
2015
£m
Connectivity 10.2 10.4
IMC 9.0 9.8
Total Connectivity and IMC 19.2 20.2
Checkit 2.8 1.2
Consolidated assets 22.0 21.4
Segment liabilities
2016
£m
2015
£m
Connectivity 5.8 5.6
IMC 4.4 4.7
Total Connectivity and IMC 10.2 10.3
Checkit 0.2 0.2
Consolidated liabilities 10.4 10.5
Other segment information
Depreciation
and amortisation
Additions to
non-current assets
2016
£m
2015
£m
2016
£m
2015
£m
Connectivity 1.0 0.7 0.6 0.5
IMC 1.2 1.0 0.5 0.4
Total Connectivity and IMC 2.2 1.7 1.1 0.9
Checkit 0.3 0.2 1.8 0.7
Total 2.5 1.9 2.9 1.6
Geographical information
The Group considers its operations to be in the following geographical regions:
Revenue from
external customers Non-current assets
2016
£m
2015
£m
2016
£m
2015
£m
United Kingdom 18.9 19.3 8.0 7.8
Rest of Europe, the Middle East and Africa 11.9 12.3 0.8 0.8
Asia Pacific and China 4.3 5.1 — —
Americas 8.2 7.7 — —
Total 43.3 44.4 8.8 8.6
3. Net operating expenses
2016
£m
2015
£m
Net operating expenses
Selling and distribution costs 5.9 6.1
Administrative expenses 9.0 8.0
Operating expenses excluding non-recurring or special items 14.9 14.1
Non-recurring or special items (see Note 4) 0.3 1.2
Total operating expenses 15.2 15.3
Non-recurring or special items are disclosed separately to improve visibility of the underlying business performance.
Management has defined such items as restructuring and site closure costs, acquisition costs, amortisation of acquired intangible assets, share-based 
payments and other non-recurring items incurred outside the normal course of business. Elektron Technology plc 48 Annual Report and Accounts 2016 Financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
year ended 31 January 2016
4. Operating profit
2016
£m
2015
£m
Operating profit is after charging:
Depreciation on owned property, plant and equipment 0.6 0.7
Depreciation on property, plant and equipment held under finance leases 0.1 0.1
Amortisation of non-acquisition intangible assets 1.6 0.9
Impairment of other intangible assets 0.2 0.2
Research and development expenditure 1.0 1.1
Loss on foreign currency translation 0.1 0.1
Operating lease rentals:
– land and buildings 0.9 1.0
– plant and machinery 0.1 0.1
Auditor’s remuneration:
– fees payable to the Company’s auditor for the audit of the Company’s annual accounts — —
– fees payable to the Company’s auditor for the audit of the Company’s subsidiaries pursuant to legislation 0.2 0.2
Total audit fees for audit services 0.2 0.2
– tax services — —
Total auditor’s remuneration 0.2 0.2
Non-recurring or special items:
– strategic review costs — 0.8
– IFRS 2 charge 0.1 0.2
– amortisation of acquisition intangible assets 0.2 0.2
Total non-recurring or special items 0.3 1.2
Included within auditor’s remuneration for audit services is less than £0.1m (2015: less than £0.1m) for the audit of overseas subsidiaries carried out by an 
auditor other than Deloitte LLP and less than £0.1m (2015: less than £0.1m) payable to Deloitte LLP for the audit of the Company’s annual accounts.
5. Finance costs 
2016
£m
2015
£m
Bank overdrafts and loans wholly repayable within five years (0.1) (0.2)
Finance leases and hire purchase contracts — (0.1)
(0.1) (0.3)
6. Net cash flows from operating activities
2016
£m
2015
£m
Profit before taxation
– from continuing operations 0.8 0.2
Adjustments for:
Depreciation 0.7 0.8
Non-recurring or other special items – continuing 0.3 1.2
Amortisation of development costs and computer software 1.8 0.9
Loss on disposal of fixed assets — 0.1
Interest payable 0.1 0.3
Operating cash flow before working capital changes and non-recurring or special items 3.7 3.5
Decrease in trade and other receivables 0.2 2.7
(Increase)/decrease in inventories (0.3) 0.8
Increase/(decrease) in trade and other payables 0.4 (2.1)
Payments for non-recurring and other special items (0.1) (1.1)
Cash generated by operations 3.9 3.8
Interest paid (0.1) (0.3)
Net cash inflow from operating activities 3.8 3.5 Elektron Technology plc 49 Annual Report and Accounts 2016 Financial statements
7. Staff information (including Directors)
Employee costs were:
Note
2016
£m
2015
£m
Wages and salaries 13.2 12.4
Social security costs 1.6 1.4
Other pension costs 24 0.3 0.3
15.1 14.1
Redundancy costs of £0.1m (2015: £0.1m) were incurred in the year and were included within operating costs. Redundancy costs incurred in 2015 were 
included in special and non-recurring items (see Note 4).
The average monthly number of people employed by the Group during the year, including Executive Directors, was as follows:
2016
Number
2015
Number
Administration and sales 167 162
Production 853 888
1,020 1,050
Details of Directors’ remuneration are included in the Remuneration report on pages 26 to 31. 
8. Taxation
(a) Analysis of tax charge for the year
2016
£m
2015
£m
Current taxation:
Overseas corporation tax charge on profit for the year 0.1 —
Underprovision for prior year 0.1 —
Total current taxation 0.2 —
Tax charge on continuing operations 0.2 —
(b) Factors affecting taxation charge for the year
In recent years the UK government has steadily reduced the rate of UK corporation tax, with the latest rates substantively enacted by the balance sheet date 
being 20% with effect from 1 April 2015, 19% effective from 1 April 2017 and 18% effective from 1 April 2020. The closing deferred tax assets and liabilities have 
been calculated at 18%, on the basis that this is the rate at which those assets and liabilities are expected to unwind.
A reduction to the UK corporation tax rate was announced in the 2016 Budget to further reduce the tax rate to 17% (to be effective from 1 April 2020). Existing 
temporary differences on which deferred tax has been provided may therefore unwind in future periods subject to this reduced rate. This rate change is to be 
included in the Finance Bill 2016 but this has not been substantively enacted at the balance sheet date.
2016 2015
Tax rate £m Tax rate £m
Profit on continuing operations before taxation 0.8 0.2
Profit on ordinary activities multiplied by weighted average
standard rate of corporation tax in the UK of 20.2% 20.2% 0.2 21.3% —
Effects of:
Expenses not deductible for tax purposes 37.5% 0.3 50.0% 0.1
Overseas tax rates 25.5% (0.2) (150.0)% (0.3)
Timing differences not recognised 12.5% 0.1 — —
Utilisation of tax losses brought forward (37.5)% (0.3) 50.0% 0.1
Non-recognition of tax losses 37.5% 0.3 50.0% 0.1
20.2% 0.2 — —
(c) Factors that may affect future taxation charges
Deferred taxation assets amounting to £0.9m (2015: £1.0m) have not been provided in respect of unutilised income tax losses that can be carried forward 
against future taxable income as there is currently insufficient evidence that these assets will be recovered. Elektron Technology plc 50 Annual Report and Accounts 2016 Financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
year ended 31 January 2016
9. Dividends paid
No interim or final dividend was paid for year ended 31 January 2016 (2015: nil).
10. Earnings per share
The calculation of the basic earnings per share (basic EPS), diluted earnings per share (diluted EPS) and earnings per share before non-recurring or special 
items (adjusted EPS) is based on the following data. Shares held in treasury are excluded from the number of shares in issue for the purposes of earnings 
per share calculations. The calculation of the diluted earnings per share is based on the basic earnings per share adjusted to allow for the issue of shares 
on the assumed conversion of all dilutive options. However, in accordance with IAS 33 “Earnings Per Share” , potential ordinary shares are only considered 
dilutive when their conversion would decrease the profit per share or increase the loss per share from continuing operations attributable to the equity 
shareholders. As at 31 January 2016 there were 14,099,350 potential ordinary shares which have been disregarded in the calculation of diluted earnings 
per share as they were considered non-dilutive at this date.
Earnings
Earnings from continuing operations
2016
£m
2015
£m
Earnings for the purposes of basic and diluted EPS being net profit attributable to the owners of the Company 0.6 0.2
Adjustment in respect of non-recurring or special items net of taxation of £Nil (2015: £Nil) 0.3 1.2
Earnings for the purposes of adjusted EPS 0.9 1.4
Number of shares
2016
No.
2015
No.
Weighted average number of ordinary shares for the purposes of basic EPS 171,025,201 140,221,240
Effect of dilutive potential ordinary shares: — —
Share options — —
Weighted average number of ordinary shares for the purposes of diluted EPS 171,025,201 140,221,240
Earnings per share
From continuing operations 2016 2015
Basic and diluted EPS 0.4p 0.1p
Adjusted and diluted adjusted EPS 0.5p 1.0p
11. Goodwill
Net book value
2016
£m
2015
£m
At 1 February and 31 January — —
Goodwill acquired in a business combination is allocated, at acquisition, to the cash generating units (CGUs) that are expected to benefit from that 
business combination. Before recognition of impairment losses, the carrying amount of goodwill has been allocated to one CGU.
In preparing the 2014 financial statements the Board decided, based upon its testing, that it was appropriate to fully impair the Group’s goodwill.  Elektron Technology plc 51 Annual Report and Accounts 2016 Financial statements
12. Other intangible assets
Development
costs
£m
Computer
software
£m
Acquired
intangible
assets
£m
Total
£m
Cost
At 1 February 2014 3.5 1.8 2.5 7.8
Additions 1.1 — — 1.1
At 31 January 2015 4.6 1.8 2.5 8.9
Additions 1.9 0.2 — 2.1
At 31 January 2016 6.5 2.0 2.5 11.0
Amortisation
At 1 February 2014 0.4 0.5 1.1 2.0
Charge for the year 0.7 0.2 0.2 1.1
At 31 January 2015 1.1 0.7 1.3 3.1
Charge for the year 1.1 0.5 0.2 1.8
At 31 January 2016 2.2 1.2 1.5 4.9
Carrying amount
At 1 February 2014 3.1 1.3 1.4 5.8
At 31 January 2015 3.5 1.1 1.2 5.8
At 31 January 2016 4.3 0.8 1.0 6.1
Development cost additions by project
2016
£m
2015
£m
Connectivity 0.1 0.1
Queensgate — 0.2
Ophthalmic 0.1 0.1
Digitron 0.1 —
Other 0.1 —
Total Connectivity and IMC 0.4 0.4
Checkit 1.5 0.7
Total development cost additions 1.9 1.1
Total amounts by project
Cost value Net book value
2016
£m
2015
£m
2016
£m
2015
£m
Connectivity 1.1 1.0 0.7 0.7
Queensgate 1.4 1.4 0.8 1.2
Ophthalmic 0.6 0.5 0.4 0.4
Digitron 0.1 — — —
Other 0.5 0.4 — —
Total Connectivity and IMC 3.7 3.3 1.9 2.3
Checkit 2.8 1.3 2.4 1.2
Total development costs 6.5 4.6 4.3 3.5 Elektron Technology plc 52 Annual Report and Accounts 2016 Financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
year ended 31 January 2016
12. Other intangible assets continued
Acquired intangible assets include marketing (£0.9m), customer (£1.3m), and technology (£0.3m) related assets arising from the acquisition of 
Hartest Holdings plc, which are being amortised over their estimated useful lives, which are estimated to be between ten and 20 years. In accordance 
with the requirements of IAS 12, an initial deferred tax liability of £0.5m was recognised separately in respect of these assets. The deferred tax liability has 
been reduced in line with the amortisation of these assets. As at 31 January 2016 the remaining deferred tax liability amounted to £0.2m. An impairment 
charge of £0.4m was recognised in relation to the acquired intangible assets in 2014, in conjunction with the impairment testing of goodwill. The Group 
has tested the intangible assets for impairment and no further impairment was considered necessary in 2016.
The Group has prepared cash flow forecasts derived from the most recent financial budgets and high level plans approved by the Board for the period to 
31 January 2019, assuming no growth in cash flows thereafter. The forecasts reflect the trading conditions experienced in the current year, where relevant, 
and these forecasts have been used in the value-in-use calculation.
The key assumptions to which the value-in-use calculation is most sensitive are those regarding the discount rates, growth rates and expected changes 
to selling prices and costs during the period.
The rate used to discount forecast cash flows is 11.5% (2015: 15%), which is deemed to be the Group’s weighted average cost of capital.
13. Property, plant and equipment
Leasehold
improvements
£m
Plant and
machinery
£m
Equipment,
fixtures,
fittings and
vehicles
£m
Total
£m
Cost
At 1 February 2014 1.2 9.0 2.9 13.1
Currency translation (0.1) — — (0.1)
Additions 0.2 0.2 0.1 0.5
Disposals (0.1) (0.4) (0.2) (0.7)
At 31 January 2015 1.2 8.8 2.8 12.8
Additions 0.1 0.5 0.2 0.8
Disposals — (0.4) (0.4) (0.8)
At 31 January 2016 1.3 8.9 2.6 12.8
Depreciation
At 1 February 2014 0.3 7.6 1.8 9.7
Charge for the year 0.1 0.3 0.4 0.8
Disposals — (0.3) (0.2) (0.5)
At 31 January 2015 0.4 7.6 2.0 10.0
Charge for the year 0.1 0.3 0.3 0.7
Disposals — (0.3) (0.3) (0.6)
At 31 January 2016 0.5 7.6 2.0 10.1
Net book value
At 1 February 2014 0.9 1.4 1.1 3.4
At 31 January 2015 0.8 1.2 0.8 2.8
At 31 January 2016 0.8 1.3 0.6 2.7
The net book value of tangible fixed assets held under finance leases and hire purchase contracts was £0.2m (2015: £0.1m). Elektron Technology plc 53 Annual Report and Accounts 2016 Financial statements
14. Investment in subsidiary undertakings
The subsidiary undertakings at 31 January 2016 were:
Name Country of incorporation Nature of business
Shares held
by parent
Shares held
by Group
Elektron Technology Corporation USA Sale of electromechanical components and instrumentation products 100% 100%
Elektron Technology PTE Ltd Singapore Sale of electromechanical components and instrumentation products 100% 100%
Elektron Technology UK Ltd England and Wales Design, manufacture and sale of electromechanical components 
and instrumentation products
100% 100%
Elektron Technology
(Shanghai) Trading Limited
China Sale of electromechanical components and instrumentation products 100% 100%
Elektron Tunisie Sarl Tunisia Manufacture of electromechanical components 100% 100%
Hartest Precision Instruments 
India Private Limited
India Dormant company 100% 100%
Agar Scientific Limited England and Wales Dormant company 0% 100%
Bulgin PLC England and Wales Dormant company 0% 100%
Checkit Limited England and Wales Web-based service for work management and automated monitoring 0% 100%
Checkit Technology Limited England and Wales Dormant company 0% 100%
Elektron Enterprises 1 Limited England and Wales Dormant company 0% 100%
Elektron Precision Instruments Ltd England and Wales Design, manufacture and sale of measurement products 0% 100%
Hartest Precision 
Instruments Limited
England and Wales Dormant company 0% 100%
Titman Tip Tools GmbH Germany Manufacture and sale of drilling and boring tooling 0% 100%
Titman Tip Tools Limited England and Wales Dormant company 0% 100%
All subsidiary undertakings are operated primarily in the country of incorporation.
15. Deferred tax
2016
£m
2015
£m
Deferred tax assets recoverable after more than one year — —
The gross movement on the deferred tax asset is as follows:
Notes
2016
£m
2015
£m
At 1 February 2015 — —
Deferred tax on separately indentifiable intangible assets 8a 0.1 0.1
Deferred tax on capitalised development costs (0.1) —
Origination and reversal of other timing differences 8a — (0.1)
At 31 January 2016 — —
This is made up of the following:
Depreciation in excess of capital allowances 0.4 0.4
Deferred tax on capitalised development costs (0.5) (0.4)
Other short-term timing differences 0.3 0.3
Deferred tax on separately identifiable intangible assets (0.2) (0.3)
— —
Deferred taxation assets have only been recognised for subsidiaries with a past history of profitable trends where there is persuasive and reliable evidence 
in the form of management accounts and financial projections that taxable profits are anticipated to arise in the foreseeable future. Deferred taxation assets 
have not been provided in respect of unutilised income tax losses that can be carried forward against future taxable income as there is currently uncertainty 
over their offset against future taxable profits and therefore their recoverability.
No deferred tax liabilities have been provided in respect of the unremitted earnings of the overseas subsidiaries. The amount of such unremitted earnings 
is estimated to be a retained profit of £5.4m (2015: £4.8m). Elektron Technology plc 54 Annual Report and Accounts 2016 Financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
year ended 31 January 2016
16. Inventories
2016
£m
2015
£m
Raw materials 3.9 2.9
Work in progress 0.3 0.3
Finished goods and goods for resale 1.5 2.2
5.7 5.4
In the ordinary course of business, the Group makes provision for slow-moving, excess and obsolete inventory as appropriate. Inventory is stated after 
charging impairments of less than £0.1m (2015: less than £0.1m), which are included within operating profit.
The amount of inventory recognised as an expense within the cost of sales amounted to £14.0m (2015: £15.1m).
17. Trade and other receivables
2016
£m
2015
£m
Trade receivables 6.6 6.4
Less: provision for impairment (0.7) (0.7)
Trade receivables – net 5.9 5.7
Other receivables 0.4 0.3
Prepayments 0.6 0.8
6.9 6.8
The fair values of trade and other receivables are considered to be as stated above.
Trade receivables can be analysed as follows:
2016
£m
2015
£m
Not past due 6.0 4.7
Past due but not impaired 0.2 1.0
Past due and impaired 0.4 0.7
6.6 6.4
The ageing of trade receivables classed as past due but not impaired is as follows:
2016
£m
2015
£m
Up to one month past due 0.1 0.9
Over one month past due 0.1 0.1
0.2 1.0
Trade receivables are normally due within 30 to 90 days and do not bear any effective interest rate. Some trade receivables are covered by credit insurance. 
There is no specific concentration of credit risk as the amounts recognised represent a large number of receivables from various customers.
Trade receivable days are 47 days (2015: 47 days).
Trade receivables of £0.7m (2015: £0.7m) are considered potentially impaired. The specifically impaired receivables relate to a wide variety of individual 
customers. Provisions for impairment are management’s best estimates based on prior experience and an assessment of the current economic environment.
Ageing of impaired receivables:
2016
£m
2015
£m
Not past due 0.3 —
Between one month and two months past due — 0.2
Over two months past due 0.4 0.5
0.7 0.7 Elektron Technology plc 55 Annual Report and Accounts 2016 Financial statements
17. Trade and other receivables continued
Movements on the provision for impairment of trade receivables are as follows:
2016
£m
2015
£m
At 1 February 2015 0.7 0.8
Decrease in provision for receivables impairment — (0.1)
At 31 January 2016 0.7 0.7
The gross carrying amounts of trade and other receivables are denominated in the following currencies:
2016
£m
2015
£m
Sterling 4.7 5.0
US Dollar 1.4 1.0
Euro 0.5 0.6
Other 0.3 0.2
6.9 6.8
18. Trade and other payables
2016
£m
2015
£m
Trade payables 3.6 4.0
Other payables 1.1 0.7
Accruals and deferred income 2.5 2.1
7.2 6.8
The fair value of trade payables has not been disclosed as, due to their short-term nature, management considers the carrying amounts recognised 
in the balance sheet to be a reasonable approximation of their fair value.
Trade payable days are 37 days (2015: 45 days).
19. Borrowings
2016
£m
2015
£m
Bank overdrafts and invoice discounting facilities 1.5 1.0
Obligations under finance leases and hire purchase contracts 0.3 0.5
Bank loans 0.4 1.8
2.2 3.3
Short-term borrowings 1.9 1.0
Current portion of long-term borrowing 0.3 1.3
Long-term borrowings — 1.0
2.2 3.3
Analysis of repayments
Bank overdrafts and invoice discounting facilities:
Within one year 1.5 1.0
Finance leases and hire purchase contracts:
Within one year — 0.2
In two to five years 0.3 0.3
0.3 0.5
Bank loans:
Within one year 0.4 1.1
In two to five years — 0.7
0.4 1.8
2.2 3.3 Elektron Technology plc 56 Annual Report and Accounts 2016 Financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
year ended 31 January 2016
19. Borrowings continued
Bank overdrafts and invoice discounting facilities of £1.9m (2015: £1.0m) and bank loans of £Nil (2015: £1.8m) are secured by debentures and fixed charges 
over certain Group assets. Balances have been offset where appropriate.
Bank overdrafts and invoice discounting facilities of £1.9m (2015: £1.0m) attract interest at 3.25% above the currency base rate.
Bank loans attract interest at 4.35% over LIBOR. 
Finance leases and hire purchase contracts of £0.3m attract interest at 2.2% to 3.65% over base rates.
On 27 April 2016, the Group agreed amended terms with its lender in respect of its revolving credit facility, which was due to expire in that month. 
This facility has now been extended until 31 March 2018 at a commitment of £2.1m which amortises on a quarterly basis of £285k per quarter with 
the remaining amount expiring at the end of the facility.
All other terms remain substantially unchanged.
20. Provisions
2016
£m
2015
£m
Non-current 0.3 0.2
Current 0.5 0.2
0.8 0.4
Product
rectification
£m
Dilapidation
costs
£m
Restructuring
costs
£m
Total
£m
At 1 February 2015 — 0.2 0.2 0.4
Provided for in the year 0.3 0.1 — 0.4
At 31 January 2016 0.3 0.3 0.2 0.8
Anticipated utilisation
Within one year 0.3 — 0.2 0.5
Beyond one year — 0.3 — 0.3
The dilapidation costs relate to redecoration, maintenance and reinstatement costs required to meet the terms of property leases held by the Group.
The restructuring costs relate principally to redundancy and other costs of streamlining the Group based on detailed plans that have been communicated 
to the affected parties.
Product rectification relates to costs required to meet potential costs of replacing faulty equipment.
21. Share capital and reserves
Share capital
2016
£m
2015
£m
Authorised
200,000,000 (2015: 200,000,000) ordinary shares of 5 pence each 10.0 10.0
Allotted, called up and fully paid
186,100,851 (2015: 186,100,851) ordinary shares of 5 pence each 9.3 9.3
Of the allotted, called up and fully paid share capital, 15,075,650 shares (2015: 15,075,650) are held by the Elektron Technology 2012 Employee Benefit Trust (EBT) 
and are treated as Treasury shares. Excluding these shares, the issued share capital at 31 January 2016 was 171,025,201 (2015: 171,025,201).
Shares held by the EBT include 9,568,000 shares (2015: 9,568,000) jointly owned with employees participating in the JSOP . 
The middle-market price of the ordinary shares at 31 January 2016 was 6.375 pence per share and the range during the year was 4.375 pence per share 
to 8.375 pence per share. Elektron Technology plc 57 Annual Report and Accounts 2016 Financial statements
21. Share capital and reserves continued
Share options
Elektron Technology plc Savings related Share Option Scheme: as at 31 January 2016, there was a total of 1,501,250 options outstanding held by 28 employees, 
including Directors. These options are exercisable after 1 July 2016 and the exercise price is 8.8 pence.
Elektron Technology plc Company Share Option Plan (CSOP)
Year of grant Exercise period
Option
price
Number of options
2016
’000
2015
’000
2011 2014–2021 38.00p — 390
2012 2015–2022 25.00p — 120
2014 2015–2022 17.00p 150 450
2014 2016–2023 10.625p 220 580
2015 2018–2025 8.00p 2,430 —
The weighted average exercise price of all options under the CSOP is 8.68 pence.
Movement in share options during the year:
2016 2015
No. of shares
000s
Weighted
average
No. of shares
000s
Weighted
average
Outstanding at beginning of year 1,540,000 10.52p 2,308,000 20.99p
Granted during the year 2,430,000 8.00p — —
Forfeited/lapsed during the year (1,170,000) (22.77)p (768,000) (21.10)p
Outstanding at year end 2,800,000 8.68p 1,540,000 20.52p
Exercisable at the end of the period — — — —
During the year, 360,000 share options lapsed as a result of employees leaving the Group, 654,000 share options were voluntarily waived in exchange 
for the grant of replacement share options and 156,000 share options were voluntarily waived by Directors.
Elektron stock appreciation options
During the year, options in the form of stock appreciation rights not included in the above table, over 622,000 shares which were granted in 2012 for 
employees outside the UK and were voluntarily waived in exchange for the grant of options in the form of stock appreciation rights over 230,000 shares. 
The exercise period for these options granted during the year is 2018–2025 and the exercise price is 8.00 pence.
Valuation of share awards
Share-based payments, including awards under the CSOP , and the SAYE schemes and stock appreciation options are valued using an independent 
probability valuation model and take account of performance criteria (if any). The significant inputs into the model for awards during the year were:
Risk-free interest rate – yield on zero coupon UK government bonds at date of grant 0.64% to 1.6%
Weighted average contractual life 3 years
Weighted average share price 7.25p to 13.75p
Strike price 8p to 11p
Volatility of share price 47%
Forfeiture rate 20%–50%
The Group recognised a charge of £0.1m in the year (2015: £0.2m).
Reserves
The nature of the reserves shown in the consolidated balance sheet and consolidated statement of changes in equity is as follows:
Share premium
Amount subscribed for share capital in excess of nominal value.
Merger reserve
Amount arising on an acquisition in prior years satisfied substantially by the issue of share capital and thereby eligible for merger relief under the provisions 
of Section 612 of the Companies Act 2006.
Capital redemption reserve
The cumulative nominal value of own shares acquired by the Company. Elektron Technology plc 58 Annual Report and Accounts 2016 Financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
year ended 31 January 2016
21. Share capital and reserves continued
Reserves continued
Own shares
The value of the Company’s shares held by the Elektron Technology 2012 EBT .
Translation reserve
Gains and losses arising on retranslating the net assets of overseas operations into Sterling of £0.8m (2015: £0.8m).
Other reserves
A reserve arising from the application of IFRS 2 “Share-based Payments” of £0.8m (2015: £0.7m).
Retained earnings
Cumulative gains and losses recognised in the consolidated statement of comprehensive income not included above.
22. Capital commitments
Expenditure sanctioned but not contracted for amounted to less than £0.1m (2015: £0.1m), and expenditure contracted but not provided for in the financial 
statements amounted to £Nil (2015: £Nil).
23. Operating lease commitments
At 31 January 2016 the Group had total commitments under non-cancellable operating leases as follows:
Land and buildings Other
2016
£m
2015
£m
2016
£m
2015
£m
Minimum lease payments:
Expiring within one year 0.1 0.4 0.1 0.1
Expiring between two and five years 0.4 0.4 0.1 0.2
Expiring after five years 2.1 2.0 — —
2.6 2.8 0.2 0.3
24. Retirement benefit schemes
The Group operates a Group Personal Pension Plan (which is a defined contribution scheme) for all qualifying employees. The assets of the schemes 
are held separately from those of the Group in funds under the control of the trustees.
Contributions to the Group Personal Pension Plan and to other personal pension plans are charged to the statement of comprehensive income as they 
become payable. The pension cost charge for the year was £0.3m (2015: £0.3m) and outstanding contributions at the year end amounted to less than 
£0.1m (2015: less than £0.1m).
25. Financial assets and liabilities
(i) Financial instruments
The Group’s financial instruments comprise borrowings, cash and cash equivalents, and various items such as trade receivables and payables that arise 
directly from its operations. The main purpose of these instruments is to raise finance for operations. The Group has not entered into derivatives transactions 
nor does it trade in financial instruments as a matter of policy. The main risks arising from the Group’s financial instruments are interest rate risk, liquidity 
risk and foreign currency risk. The Board’s policy on each is described in Note 1 and has not changed since 2012. Operations are financed through working 
capital management and short-term flexibility is achieved by revolving credit and invoice discounting facilities.
Treasury matters are dealt with on a Group basis and are approved by the Board. At 31 January 2016 gross gearing on net assets was 18.8% (2015: 30.9%).
(ii) Financial assets: excluding receivables due within one year
Details of trade and other receivables are provided in Note 17. The only other current financial asset held is cash and cash equivalents. The balances 
as at 31 January are detailed below:
2016
£m
2015
£m
US Dollar accounts 0.2 0.1
Indian Rupee 0.1 0.1
Euro accounts 0.1 0.1
Pound Sterling 0.2 0.3
0.6 0.6 Elektron Technology plc 59 Annual Report and Accounts 2016 Financial statements
25. Financial assets and liabilities continued
(iii) Financial liabilities: excluding non-debt current liabilities
The only financial liabilities of the Group which are subject to interest charges are bank loans, invoice discounting facilities, overdrafts and obligations 
under finance leases and hire purchase contracts. All borrowings attract interest at variable rates. At 31 January the interest rate profile of the Group’s 
financial liabilities was as follows:
2016
£m
2015
£m
Floating rate financial liabilities 2.2 3.4
(iv) Maturity
The maturity profile is shown in Note 19.
(v) Fair value of financial assets and liabilities
IFRS 7 “Financial Instruments” requires disclosure of fair value measurements by the level of the following fair value measurement hierarchy:
 » quoted prices (unadjusted) in active markets (Level 1);
 » inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly (Level 2); and
 » inputs for the asset or liability that are not based on observable market data (Level 3).
There were no applicable assets or liabilities at 31 January 2016 (2015: nil).
(vi) Committed undrawn borrowing facilities
At the year end the Group had committed undrawn facilities of £2.6m (2015: £3.9m) that related to revolving credit, invoice discounting, leasing and overdraft 
facilities repayable on demand in the event of any breaches in the covenants given by the Group.
(vii) Currency risk
The Group has transactional currency exposure arising from normal trading activity. Such exposure arises from sales and purchases in currencies other 
than Sterling. The Group does not trade in derivatives or make speculative hedges.
At 31 January 2016 the Group had no commitments under non-cancellable forward contracts (2015: £Nil).
The Group’s currency exposure, being those transactional exposures that give rise to net currency gains and losses recognised in the statement 
of comprehensive income, was as follows:
Assets Liabilities
2016
£m
2015
£m
2016
£m
2015
£m
US Dollar 1.6 1.1 (0.3) (0.2)
Euro 0.6 0.6 (0.2) (0.3)
Indian Rupee 0.1 0.1 — —
2.3 1.8 (0.5) (0.5)
(viii) Sensitivity analysis
For the year ended 31 January 2016 it is estimated that, for a 10% exchange rate movement, which is considered to be a reasonably possible change, 
the Group’s Sterling-reported profit before tax would have changed by:
 » £0.1m (2015: £0.1m) for the US Dollar;
 » less than £0.1m (2015: £0.1m) for the Euro; and
 » less than £0.1m (2015: less than £0.1m) for the Indian Rupee.
Sensitivity to other currencies and interest rates is not considered to be material in the context of the 2016 results.
(ix) Categories of financial instruments
Financial assets
2016
£m
2015
£m
Cash and bank balances 0.6 0.6
Loans and receivables 6.6 6.8
7.2 7.4 Elektron Technology plc 60 Annual Report and Accounts 2016 Financial statements
25. Financial assets and liabilities continued
(ix) Categories of financial instruments continued
Financial liabilities
2016
£m
2015
£m
Other financial liabilities at amortised cost
Trade and other payables 4.7 4.7
26. Related party transactions
(a) Transactions between Group companies, which are related parties, have been eliminated on consolidation and have therefore not been disclosed.
(b)  The Group occupies a number of leasehold properties with annual rentals of £0.4m (2015: £0.3m), the landlord of which is part of Panther Securities Plc, 
a substantial shareholder in Elektron Technology plc.
Elektron Technology plc, the Company, has also given rental guarantees to Panther Securities Plc as described in Note 13 to the parent company 
financial statements.
27. Potential litigation update
Mr Bridge’s application for permission to appeal against the judgement His Honour Judge Hodge QC made on 17 June 2015 in respect of his application 
to pursue a derivative action against certain Directors of the Company was dismissed by Lord Justice Kitchin at the hearing on 20 April 2016. Lord Justice Kitchin 
came to the firm conclusion that Mr Bridge’s appeal would not have a real prospect of success on any of the grounds put forward. There is no further route 
of appeal available to Mr Bridge. 
As previously reported in the RNS announcement made on 18 June 2015, at the hearing on 17 June 2015 His Honour Judge Hodge QC also ordered 
Mr Bridge to pay the costs of both the Company and the Directors. Enforcement of those costs was stayed pending the outcome of Mr Bridge’s application 
for permission to appeal to the Court of Appeal. That application was dismissed on 20 April 2016, with the result that the stay on enforcement has been 
lifted. The Company is therefore now taking steps to recover the costs that it has incurred in relation to this matter.
28. Post balance sheet events
Subsequent to year end the Group completed the disposal of its wholly owned subsidiary undertaking Agar Scientific Limited (which traded as a brand 
within the IMC segment of the Group) for total initial proceeds of £2.0m and potential deferred proceeds of £0.3m. The deferred consideration of £0.3m 
is subject to adjustment for levels of working capital at completion and it is repayable in monthly instalments of £10,000, commencing 30 June 2016. 
The disposal will be initially earnings dilutive, although the Group will seek to reduce this dilution through strict cost management. The disposal is part 
of the Group’s rationalisation of its portfolio and will allow management to concentrate on the remaining higher margin businesses and those capable 
of substantial growth. The proceeds will be used to reduce borrowings (see Note 19 for details), leaving the Group in a net cash position.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
year ended 31 January 2016 Elektron Technology plc 61 Annual Report and Accounts 2016 Financial statements
Notes
2016
£m
2015
£m
Fixed assets
Intangible assets 3 — 1.1
Tangible assets 4 — 0.1
Investments in subsidiary undertakings 5 0.3 0.3
0.3 1.5
Current assets
Debtors 6 17.2 18.1
Cash in hand and at bank 0.1 0.1
17.3 18.2
Creditors: amounts falling due within one year 7 (1.5) (2.7)
Net current assets 15.8 15.4
Total assets less current liabilities 16.1 16.8
Creditors: amounts falling due after more than one year 8 — (0.3)
Provisions for liabilities 10 — —
Net assets 16.1 16.5
Capital and reserves
Called up share capital 11 9.3 9.3
Share premium 11 5.4 5.4
Merger reserve 11 1.1 1.1
Capital redemption reserve 11 0.2 0.2
Other reserves 11 0.4 0.3
Profit and loss account 11 (0.3) 0.2
Shareholders’ funds 16.1 16.5
The financial statements were approved by the Board of Directors on 8 June 2016 and were signed on its behalf by:
Keith Daley Andy Weatherstone
Director  Director
PARENT COMPANY BALANCE SHEET
as at 31 January 2016 Elektron Technology plc 62 Annual Report and Accounts 2016 Financial statements
STATEMENT OF CHANGES IN EQUITY
year ended 31 January 2016
Share
capital
£m
Share
premium
£m
Merger
reserve
£m
Capital
redemption
reserve
£m
Other
reserves
£m
Profit
and loss
account
£m
Total
£m
At 1 February 2014 6.0 5.4 1.1 0.2 0.1 2.2 15.0
Loss for the year — — — — — (2.0) (2.0)
Total comprehensive (expense) for the year — — — — — (2.0) (2.0)
Share issue 3.3 — — — — — 3.3
Credit to equity for share-based payment — — — — 0.2 — 0.2
At 1 February 2015 9.3 5.4 1.1 0.2 0.3 0.2 16.5
Loss for the year — — — — — (0.5) (0.5)
Total comprehensive (expense) for the year — — — — — (0.5) (0.5)
Credit to equity for share-based payment — — — — 0.1 — 0.1
At 31 January 2016 9.3 5.4 1.1 0.2 0.4 (0.3) 16.1 Elektron Technology plc 63 Annual Report and Accounts 2016 Financial statements
1. Accounting policies
Basis of preparation
The separate financial statements of the Company are presented as required by the Companies Act 2006. The Company meets the definition of a qualifying 
entity under FRS 100 (Financial Reporting Standard 100) issued by the Financial Reporting Council. Accordingly, in the year ended 31 January 2016 the Company 
has decided to adopt FRS 101 and has undergone transition from reporting under previously applicable United Kingdom accounting standards to FRS 101 as 
issued by the Financial Reporting Council. Accordingly, the financial statements have therefore been prepared in accordance with FRS 101 (Financial Reporting 
Standard 101) “Reduced Disclosure Framework” as issued by the Financial Reporting Council. This transition is not considered to have had a material effect 
on the financial statements except for those shown in Note 15 below.
As permitted by FRS 101, the Company has taken advantage of the disclosure exemptions available under that standard in relation to share-based payments, 
financial instruments, capital management, presentation of comparative information in respect of certain assets, presentation of a cash flow statement and 
certain related party transactions. Where required, equivalent disclosures are given in the consolidated financial statements.
The financial statements have been prepared on the historical cost basis. The principal accounting policies adopted are the same as those set out in Note 1 
to the consolidated financial statements except as noted below:
Investments
Investments in subsidiaries and associates are stated at cost less, where appropriate, provisions for impairment.
Tangible fixed assets
The cost of fixed assets is their purchase cost less depreciation. Depreciation is calculated on the cost of each tangible fixed asset individually on a straight 
line basis and is designed to write off the cost of the asset, less any residual value over their estimated lives. Assets are not depreciated until they are brought 
into use. The estimated useful lives are:
 » Equipment  three to seven years
 » Motor vehicles  four years
2. Loss for the financial year
As permitted by Section 408 of the Companies Act 2006 the profit and loss account of the parent company is not presented as part of these financial statements. 
The parent company’s loss for the financial year amounted to £0.5m (2015: £1.2m).
3. Intangible assets
Computer 
software
£m
Cost
At 1 February 2015 1.7
Disposals (0.1)
Inter-company transfer (1.6)
At 31 January 2016 —
Amortisation
At 1 February 2015 0.6
Charge for the year 0.3
Disposals (0.1)
Inter-company transfer (0.8)
At 31 January 2016 —
Net book value
At 31 January 2016 —
At 31 January 2015 1.1
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
year ended 31 January 2016 Elektron Technology plc 64 Annual Report and Accounts 2016 Financial statements
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS CONTINUED
year ended 31 January 2016
4. Tangible fixed assets
Equipment
and vehicles
£m
Cost
At 1 February 2015 0.5
Disposals (0.1)
Inter-company transfer (0.4)
At 31 January 2016 —
Depreciation
At 1 February 2015 0.4
Charge for the year —
Inter-company transfer (0.4)
At 31 January 2016 —
Net book value
At 31 January 2016 —
At 31 January 2015 0.1
5. Investments in subsidiary undertakings
2016
£m
2015
£m
At 1 February 0.3 2.0
Dissolution of dormant subsidiaries (Note 14) — (1.7)
At 31 January 0.3 0.3
6. Debtors: amounts falling due within one year
2016
£m
2015
£m
Amounts owed by subsidiary undertakings 17.0 17.9
Prepayments 0.2 0.2
17.2 18.1
7. Creditors: amounts falling due within one year
2016
£m
2015
£m
Bank loans and overdrafts (Note 9) — 1.1
Amounts owed to subsidiary undertakings 1.1 1.1
Finance leases (Note 8) — 0.2
Other taxes and social security costs — 0.1
Other creditors 0.2 0.1
Accruals and deferred income 0.2 0.1
1.5 2.7
8. Creditors: amounts falling due after more than one year
2016
£m
2015
£m
Finance leases — 0.3 Elektron Technology plc 65 Annual Report and Accounts 2016 Financial statements
9. Loans and other borrowings
2016
£m
2015
£m
Bank loans — 1.1
Finance leases — 0.5
— 1.6
Maturity of financial liabilities
In one year or less — 1.3
In more than one year, but not more than two years — 0.3
— 1.6
Bank loans of less than £0.1m are secured by debentures and fixed charges over certain of the assets of the Company and the Group. Bank loans attract 
interest at 4.35% over LIBOR.
10. Provisions
2016
£m
2015
£m
At 1 February — 0.1
Released in the year — (0.1)
At 31 January — —
11. Share capital and reserves
Details of the share capital and reserves are given in Note 21 of the notes to the consolidated financial statements.
12. Capital expenditure commitments and operating lease commitments
Capital expenditure contracted but not provided for in the financial statements amounted to £Nil (2015: £Nil). The Company had £1.2m total future 
minimum leave commitment for land and buildings at 31 January 2016 (2015: £1.5m).
13. Contingent liabilities
The Company has given certain guarantees in respect of invoice discounting arrangements of certain subsidiary companies up to £1.0m and has guaranteed 
rental obligations of certain subsidiary companies up to £0.4m.
14. Related party transactions
Related party transactions are the same for the Company as for the Group. Details can be found in Note 26 of the notes to the consolidated financial statements.
15. Transition to FRS 101
For all periods up to and including the year ended 31 January 2015, the Company prepared its financial statements in accordance with previously extant 
United Kingdom Generally Accepted Accounting Practice (UK GAAP). These financial statements, for the year ended 31 January 2016, are the first the Company 
has prepared in accordance with FRS 101.
Accordingly, the Company has prepared individual financial statements which comply with FRS 101 applicable for periods beginning on or after 
1 February 2014, and the significant accounting policies meeting those requirements are described in the relevant notes.
In preparing these financial statements, the Company has started from an opening balance sheet as at 1 February 2014, the Company’s date of transition 
to FRS 101, and made those changes in accounting policies and other restatements required for the first-time adoption of FRS 101. As such, this note explains 
the principal adjustments made by the Company in restating its financial statements for the year ending 31 January 2015 under the previous UK GAAP , 
including the opening balance as at 1 February 2014. 
On transition to FRS 101, the Company has applied the requirements of paragraphs 6–33 of IFRS 1 “First–time Adoption of International Financial 
Reporting Standards” . Elektron Technology plc 66 Annual Report and Accounts 2016 Financial statements
15. Transition to FRS 101 continued
Reconciliation of equity
At 31 January
2015
£m
At 1 February
2014
£m
Equity reported under GAAP 16.1 18.1
Adjustment to equity on transition to FRS 101
 – Investment acquisition costs 0.4 0.4
Equity reported under FRS 101 16.5 18.5
16. Transition to FRS 101 – investments
Under UK GAAP , the acquisition costs that arose as part of the acquisition of Hartest by Elektron Technology PLC, are treated as part of the cost of investment 
and capitalised on the Elektron Technology PLC balance sheet under investment costs. However, under IFRS these acquisition costs are expensed straight 
to the income statement rather than being capitalised to the balance sheet as part of the cost of investment. Therefore an adjustment has been made to 
remove the acquisition costs from the investment line in the balance sheet and adjust the reserves balance as this adjustment has impacted the income 
statement results for the year, reducing the profit in the period. This adjustment has been made to both the current and prior year balance sheets. 
17. Transition to FRS 101 – fixed assets
In the prior year Elektron Technology plc held fixed assets and a portion of these were related to computer software assets. These have been reclassified 
as intangible assets under IFRS.
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS CONTINUED
year ended 31 January 2016 Elektron Technology plc 67 Annual Report and Accounts 2016 Financial statements
Agar Scientific
www.agarscientific.com
Arcolectric
www.arcolectric.com
Bulgin
www.bulgin.co.uk
Carnation Designs
www.carnationdesigns.com
Checkit
www.checkit.net
Digitron
www.digitron.com
Elektron Technology
www.elektron-technology.com
Queensgate
www.queensgate.co.uk
Sheen Instruments
www.sheeninstruments.com
Titman UK
www.titman.co.uk
Titman GmbH
www.titman.de
Wallace Instruments
www.wallaceinstruments.co.uk
WEB PROPERTY Elektron Technology plc 68 Annual Report and Accounts 2016 Financial statements
ADVISERS
Company Secretary
Martin Reeves
BA Hons, FCIS
Registered office
Broers Building 
JJ Thomson Avenue 
Cambridge CB3 0FA
Registered in England
No. 448274
Registrars
Capita Asset Services
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Nominated adviser and broker
finnCap
60 New Broad Street
London EC2M 1JJ
Solicitors
Birketts LLP
Brierly Place
New London Road
Chelmsford CM2 0AP
Auditor
Deloitte LLP
Deloitte House
Station Place
Cambridge CB1 2FP
Bankers
HSBC Bank plc
70 Pall Mall
London SW1Y 5EZ  
Design Portolio is committed to planting 
trees or every corporate communications 
project, in association with Trees or Cities.
Elektron Technology plc’s commitment to environmental issues is reflected 
in this Annual Report which has been printed on Symbol freelife Satin, which 
is an FSC® Mix Certified paper, ensuring that all virgin pulp is derived from 
well managed forests and other responsible sources. Elektron Technology plc Annual Report and Accounts 2016
Elektron Technology plc
Broers Building 
JJ Thomson Avenue  
Cambridge CB3 0FA
info@elektron-technology.com  
www.elektron-technology.com