SDX Energy Regulatory News (SDX)

10 Oct 2005 10:00

Sondex PLC10 October 2005 Sondex plc("Sondex" or the "Company") Russian contract and pre-close update Russian contract Sondex is pleased to announce that it has won an important contract in itswireline division from a major Russian gas producer. The order, valued at around$2.5 million, is the first significant order for wireline products from theregion. The equipment will be used to inspect the condition of older wells suchthat remedial actions can take place to increase production. This contractbuilds on the presence and growing reputation of Geolink in the region. Geolinkwas acquired by Sondex to form the core of its drilling division in June 2004. Pre-close update and reporting dates Sondex will be re-presenting its financial results for the year ended February2005 under International Financial Reporting Standards in a transitionalstatement announcement planned for 23rd November. The interim results for the 6 months ended August 2005 will be announced on 14thDecember. These results are expected to show organic like-for-like revenuegrowth in Sondex wireline division in excess of 50%, with Geolink also making asignificant contribution to the Company, particularly from strong sales in LatinAmerica. Total revenues are expected to be nearly double the comparable periodlast year. The Company's order book remains at an all time high. Investment inthe supply chain is being made in a timely manner in order to increase capacityto fulfil the current demand. In the short term this investment will put somepressure on margins and working capital. Sondex is confident of achieving fullyear earnings in line with market expectations. The Board also continues to review opportunities to accelerate earnings growththrough selective acquisitions. Sondex will be meeting with analysts during the week commencing 10th October todiscuss the contents of this release, but no further material new informationwill be given. Martin Perry, Chief Executive of Sondex commented: "We are delighted to have won this Russian contract. Russia has excitingpotential for Sondex, and both our divisions are now building a presence andreputation. The Company has continued to perform well and we are continuing to invest inorder that we may take full advantage of the on-going positive marketconditions. We are confident of achieving growth of our full year earnings inline with expectations." 10 October 2005 ENQUIRIES: Sondex Tel: 0118 932 6755Martin Perry (Chief Executive)Chris Wilks (Finance Director) College Hill Tel: 020 7457 2020Nick ElwesBen Brewerton This information is provided by RNS The company news service from the London Stock Exchange