Energy Technique.....the suvair deal is done...target price 30p+

LONDON (AFX) - Energy Technique PLC saw losses widen in the first half to end-
Sept as a consequence of "extremely difficult" trading conditions in the second
quarter at Diffusion Heating and Cooling, which were not envisaged when results
for the year ended March 31 2004 were announced in July.

The group's pretax loss for the half-year was 924,000 stg compared with a loss
of 679,000 stg a year earlier. Sales rose to 6.1 mln stg form 4.95 mln.

The recently appointed chairman GM Thompson said that, as the group positions
itself for the challenges ahead it is taking full account of the new competitive
pressures that have impacted performance, and is seeking to maximise the
opportunities arising from newer areas of business such as the distribution
agreements within Diffusion DX Air Conditioning and the Nightingale UVGI unit
developed by the company's Air Treatment division.

In the group's Diffusion Heating and Cooling division, sales rose in the first
half but losses deepened. The losses for the period were all incurred in the
second quarter and were directly attributed to an unexpected sharp downturn in
the fan coil business at the West Molesey operation during July, August and
September.
Since that time there has been a modest upswing, though new competition from
Europe and Asia continue to affect the structure of the market, the group said.

Thompson said that, although the group has incurred further losses since Sept 30
- due primarily to the continuation of losses at Heating and Cooling and to low
sales in the Air Treatment division - it is now seeing renewed interest in core
products as well as in technologically advanced door curtains.
In the distribution division turnover on a month to month basis, in
comparison to previous year's month to month, continues to grow, Thompson added.

He said that despite his disappointment at the first half results, the
rationalisation and repositioning the group is now beginning to implement takes
account of the realities of a changed marketplace and will produce a strongly
positive outcome in the longer term.