RMS.L Regulatory News (RMS)

Strat Aero plc / Index: AIM / TIDM: AERO / Sector: Support Services

1 April 2016

Strat Aero plc ("Strat Aero", the "Company" or the "Group")

 Corporate Update and Board Changes

Strat Aero Plc, the AIM quoted international aerospace company focused on the Unmanned Aerial Vehicle ("UAV") sector, announces a corporate update relating to one of the Group's subsidiaries, Aero Kinetics, which the Company agreed to acquire in December 2015 in addition to changes to the Board.

Corporate Update

Following the announcement released on 11 December 2015 regarding the acquisition of Texas based Aero Kinetics, the Company has filed a legal action in Texas, USA against Mr W. Hulsey Smith, the vendor of Aero Kinetics on counts of fraud and breach of contract. Strat Aero has also terminated the services of Mr W. Hulsey Smith, Chairman and CEO of Strat Aero's subsidiary Aero Kinetics with immediate effect. 

Further updates in connection with this legal action will be made as appropriate.

The Company continues to make good progress across its various other business divisions, particularly, the Company's 100% owned subsidiary Geocurve Holdings Limited, a specialist in the provision of UAV operated topographical surveys and inspection services to blue chip customers, including the UK's Environment Agency, EDF Energy, Carillion, and the RSPB. In tandem with this, the Company's proprietary Digital Data Management software ('DDM'), which secured a contract with leading aviation industry service provider ReadyJet on 1 March 2016, continues to attract potential new customers in line with the Company's roll out strategy to new industries and geographic regions. In addition, as announced on 19 February 2016, Strat Aero secured its first orders in the wind sector and discussions are ongoing with other operators.

A full trading update, alongside the full year results for the year to 31 December 2015, will be released in due course. Importantly, investors should note Aero Kinetics was not projected to have a significant impact on the performance of the group in the near future.

Board Changes

The Company also announces the resignation of Mr Tony Dunleavy, who has stepped down from the Board to pursue other interests, with immediate effect. The Board is pleased to announce the appointment of Mr. Iain McLure as CEO. Mr. McLure is a highly experienced executive who has held a number of senior management roles throughout his career, including CEO of Spring Global Mail, one of the leaders in the cross-border logistics and postal services market.

Mr. McClure is an operational specialist with a strong track record. He has over 20 years' hands-on experience of international, multi-discipline management. Between 1995 and 2013, he was CEO of Spring Global Mail, which was originally established in 2000 as a joint venture between TNT, Royal Mail and Singapore Post but is now a wholly owned subsidiary of TNT. Spring Global Mail specialises in cross-border international mail, parcel and return services for businesses including the Royal Mail with a particular focus on e-commerce, direct marketing and reverse logistics business, handling major blue chip multi-national clients like Vodafone and Office Depot. Prior to Spring Global, Iain was Commercial Director at Royal Mail International.

Iain brings practical skills in leadership, structured process, negotiation and specifically a wealth of experience in business development and growth. Iain's key strengths are strong leadership and people management and development skills, supported by solid commercial sense. He has a sound analytical and operational background and extensive experience of innovation, technology and practical problem solving. Importantly, Iain has demonstrated his ability to identify key areas of growth within businesses and enhance performance in order to maximise revenue generation and profitability.

Mr. McLure will be working with the executive team in order to consolidate the Company's strong position in the rapidly expanding UAV market.

Graham Peck, Chairman said "I would like to sincerely thank Tony for his contribution to the Company and wish him well in the future and I welcome Iain McLure to the Company; I am confident that he possesses the skills and commercial prowess to shape and guide the Company to realise the significant nascent potential of the UAV industry. To date we have built an excellent framework to capitalise on this expanding industry - I believe that Iain can steward the Group to build on this platform to deliver tangible results in the coming months." Iain McLure, the incoming CEO said "I am delighted to be joining Strat Aero, the UAV industry is full of opportunity and is on the brink of massive growth in related professional services. Strat Aero has a highly qualified and experienced team which is extremely well positioned to take advantage of these opportunities."

Iain Fleming McLure, aged 58, currently holds or has held the following directorships and partnerships in the last five years:

There is no other information that is required to be disclosed pursuant to Schedule 2 paragraph (g) or Rule 17 of the AIM Rules for Companies.

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Notes

Strat Aero plc is a multi-divisional international aerospace services company, focussed primarily on the provision of complete client solutions in the Unmanned Aerial System ('UAS' market), which is predicted to show exponential growth over the coming decade. Commercial and military applications in UASs are expected to be a dynamic growth sector in the aerospace industry over the next 10 years with the UAS market forecast to grow to more than US$82.1 billion between 2015 and 2025 (AUVSI Economic Report 2013) and the global airborne Intelligence, Surveillance and Reconnaissance ('ISR') market estimated to grow to US$19.23 billion by 2023.