Crystalate Holdings Plc, which is currently the subject of a hostile bid from industrial holding company TT Group Plc, has announced interim losses of UKP897,000 – a week after US firm Vishay Intertechnology set itself as up as the white knight Crystalate is looking for by declaring its interest in the electronics components supplier (CI No 1,420). Announcing an interim dividend held at 2.2 pence a share, Crystalate chairman Lord Jenkin noted the derisory level of acceptances for the TT Group offer, which, together with TT’s original holding, give it 11.7% of the ordinary shares in Crystalate and 7.1% of the preference shares. Lord Jenkin went on to blame a substantial down-turn in demand and poor margins for the disappointing results, indicating that among total revenues up slightly to UKP61.7m, Crystalate’s European resistive products business was adversely affected by low demand in the telecommunications sector, while US operations suffered as a result of a depressed automotive industry. Relocation of Crystalate’s US manufacturing facilities, restructuring and new management for the Welwyn Electronic Systems division, together with the disposal of the Crystalate Telecommunications arm last March, are expected to have a positive effect on performance next financial year. Meanwhile, shareholders have been advised not to act on the Vishay statement, described by Crystalate chief executive Bob Eade as vague.
