ZTX Zetex

RNS Number:5119V
Zetex Plc
25 April 2007



25 April 2007



                                   Zetex plc



                                 AGM Statement



At the Annual General Meeting today of Zetex plc, the designer and manufacturer
of analog semiconductor solutions, the Chairman, Liz Airey, issued the following
statement on current trading prospects.



"As anticipated in the outlook section of the Preliminary Results issued on 22
February 2007, industry conditions have been less robust in the first quarter of
2007 than in 2006 due to the continued unwinding of excess inventory in end
markets. These conditions are anticipated to persist until the end of the second
quarter.



Zetex revenues in the first quarter were considerably ahead of the first quarter
of 2006.  First half revenues, as predicted at the time of the preliminary
statement made in February 2007, are expected to be in line with the second half
of 2006 and well ahead of the first half of 2006.



We still anticipate that market conditions will improve in the second half. In
the context of this market environment the board continues to be confident that
the execution of our strategies will deliver growth in the second half of the
year. In line with our strategy, we have opened a sales office in Taiwan and
will continue to invest in sales resources with focus on Taiwan, China and
Korea. We made further progress in enhancing our R&D capabilities in order to
accelerate the enrichment of our product portfolio.



Gem Mill, the former operating site in Chadderton, UK, was sold in March to a
national house builder for residential development with net sale proceeds of
#2.6m.  This resulted in an exceptional profit on disposal of #2.0m.



Cash  and working capital continues to be actively managed with the result that
the group's cash position remains strong and has risen over the first quarter.
Inventory turns are expected to improve as planned over the course of the year.
As explained in our 2006 annual report, the group has substantial exposure to
the US dollar and has an ongoing hedging policy that limits the impact on
operating profit.  By way of benchmarking the potential impact, if the current
level of dollar / sterling were to persist throughout the year, profit before
adjusted items would be adversely impacted by approximately #1 million.



Taking all these factors into account the board believes that sales for 2007
will be weighted, as last year, to the second half. The board further believes
that profit before adjusted items will also be weighted to the second half and,
before taking into account the effect of the currency fluctuations referred to
above, be in line with expectations."











Enquiries:



Liz Airey

Chairman





Hans Rohrer

Chief Executive Officer



Nick Hawkins

Chief Financial Officer



Zetex plc

Tel: 0207 638 9571 on 25 April at Citigate Dewe Rogerson and 0161 622 4700
thereafter



Toby Mountford / Justin Griffiths

Citigate Dewe Rogerson

Tel: 0207 638 9571








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