15 May 2019 – acquisition and trading update
Elektron has acquired Next Control Systems Limited for a cash consideration of £10.5m, inclusive of £1.7m of cash in Next as at the date of completion. The price represents a multiple of 6.6X 2018 EBITDA and the deal is expected to be immediately earnings accretive for Elektron. The company has also announced a strong start to the year. Group sales for the quarter ending 30 April 2019 increased by 17% to £8.9m (2018: £7.6m). Final results are due out on 12 June and we keep our BUY rating for now.