(DSN) Densitron Technologies

Densitron Technologies plc

Unaudited Interim Results

Densitron Technologies plc ("Densitron" or "the Company" or "the Group") is pleased to announce its unaudited interim results for the six months ended 30^th June 2011.

Highlights

Ø Revenue increased by 31% to £11.3m (2010: £8.6m).

Ø Operating profit increased by 260% to £0.54m (2010: £0.15m).

Ø Orders booked increased by 6% to £11.2m (2010: £10.6m).

Ø Distribution of the proceeds of the disposal of Evervision to Shareholders totaling 5p per share.

Ø Interim dividend declared of 0.2p per share (2010: 0.1p per share).

Financial Highlights on continuing operations

Enquiries:

Densitron Technologies plc

Grahame Falconer / Tim Pearson

Tel: 0207 648 4200

Westhouse Securities Limited

Tom Price / Martin Davison

Tel: 020 7601 6100

Chairman's Statement

I am pleased to be able to report that the Group has continued with the progress that it made during 2010 and is now delivering a growing return on its business.

The orders booked during the first half of 2011 were £11.2m compared with £10.6m booked in the first half of 2010, a growth of 5.7%. The orders booked during the first half of 2010 contained an amount of £0.5m for last time buy orders following the announcement that a range of products were being withdrawn by the manufacturer. Excluding these orders the increase in the first six months of 2011 would have been in excess of 10%.

Due to the time lag between orders being booked and delivered to customers the growth in sales and gross profit in the first half of 2011 were expected to be significantly ahead of the growth in orders and that is how it turned out. Sales for the first half of 2011 were £11.3m compared with £8.6m for the same period in 2010, an increase of 31%. Gross profit achieved grew from £2.6m to £3.3m, an increase of 27%.

Given the growth in business activity the administrative expenses increased to £2.8m in 2011 from £2.5m in 2010. As a result of this growth the Group achieved an operating profit of £0.54m in the first six months of 2011 compared with £0.15m for the first six months of 2010. This is ahead of our internal forecast and confirms that the business is well on track to achieve market expectations for the full year.

Operational review

The Group's operations are primarily the design, development, marketing and selling of electronic displays.

European business - The European business has continued to grow during the first half of the year with orders being booked to the value of £5.7m compared with £5.4m booked during the first half of 2010, an increase of 6%. Sales during the first six months of the year totaled £5.9m, compared with £4.7m achieved in the same period during 2010, an increase of 26%. Gross profit achieved during the first half of the year was £1.5m compared with £1.3m achieved in the same period in 2010, an increase of 15%.

US business - The US has continued to perform strongly in the first half of the year. Orders totaling £4.1m were booked compared with £4.0m booked in the same period during 2010, a further increase of 2.5% on top of substantial growth in 2010. Sales were £4.0m compared with £3.0m in the same period of 2010, an increase of 33%. Gross profit amounted to £1.1m compared with £0.9m achieved in the same period in 2010, an increase of 22%.

Asian business - The Asian business which is made up of Densitron Asia and Densitron Corporation of Japan achieved significant growth during the first half of 2011. In the six months to 30 June 2011 orders were £1.4m compared with £1.2m in 2010, an increase of 17%. Sales were £1.4m compared with £0.8m in the same period in 2010 an increase of 75%. Gross profit was £0.7m, compared with £0.4m achieved in the same period in 2010, also an increase of 75%.

Land at Blackheath

This is the 1.25 acre strip of land in Blackheath, London, for which the Group is seeking planning permission.

I reported in my Chairman's Statement in the 2010 Annual Report that a planning application for the land had been rejected and that we were considering our next step. Having taken further advice of leading Counsel we have withdrawn our appeal and agreed on a different strategy. This is to pursue reclassification of the site under the LDF (Local Development Framework) process and explore existing use rights on the site.

Dividend

As previously advised a special dividend and capital reduction totaling 5p per share was paid in May 2011 following the sale of Evervision in 2010. In addition a final dividend of 0.2p per share based on the 2010 accounts was paid in June 2011.

The Board of Directors is pleased with the progress that the business is making and in particular the increase in profitability. Consequently, I am pleased to declare an interim dividend of 0.2p per share, an increase of 100% compared to last year. The dividend will be paid to shareholders on the register on 9 September 2011.  The Company's shares will trade 'Ex-dividend' on 7 September 2011 and the proposed payment date is 30 September 2011.

Outlook

Although we are mindful of the general slowdown in the global economy, the outlook for the business remains encouraging. Our cautious optimism is due to the growing global demand for the products that the Group sells. Our strategy is to grow the business organically and we have concluded that this is currently the most appropriate way to expand our business. Whilst not ruling out strategic acquisitions we believe that the existing business can deliver greater returns and we are concentrating on growing the operating margin. We recognise that there are opportunities for geographical growth, with the office in Italy that was opened during 2010 already delivering a positive return. To that end we are intending to create a presence in India in the second half of the year with a view to opening an office in 2012. India is a location that has delivered a substantial number of leads during the first half of the year.

Jan G Holmstrom

Chairman

22 August 2011

Unaudited Condensed Consolidated Income Statement

For the six months ended 30th June 2011

Unaudited Condensed Statement of Comprehensive Income

For the six months to 30th June 2011