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22 Jan 2009 07:00
SEPURA PLC
INTERIM MANAGEMENT STATEMENT
Sepura plc ("the Company"), a global leader in the design, development and supply of TETRA digital radios, used predominately by the emergency services around the world, today issues the following Interim Management Statement. This statement, as required by the UK Listing Authority's Disclosure and Transparency Rules, refers to the Company's trading results for the period 1 October 2008 to 21 January 2009.
The Board of Sepura believes that demand for the Company's products will continue to grow due to the ongoing rollout of TETRA networks around the world, the continuing demand from existing networks and the further strengthening of Sepura's position as a leading supplier of TETRA radio terminals.
Q3 Trading: 1 October to 31 December 2008
International business
Trading during the quarter in the International business was in line with expectations. We sold into 50 countries, one of which was a new territory for us, with significant sales in Hungary, Sweden, and Estonia. Customers during the quarter represented a diverse and robust mix of predominantly Public Safety end-users. The strong Euro continued to benefit revenue and gross margins as the majority of our International sales are billed in Euros.
Of particular significance in the International business were the first wins in the strategically important German market. We have been successful in the first three tenders where the results have been announced - Niedersachen and Bremen which were announced by the Company in November, and Sachsen-Anhalt which was confirmed in December. In total these contracts represent 27,300 terminals, of which we expect 40% to be delivered in the final quarter of this financial year. Tendering is ongoing for contracts with other German states, and we continue to work closely with our German partner, Selectric, to ensure we maximise the opportunity in this critical market.
We have also received a significant order from Malaysia for delivery in Q4 as we continue to develop this important market.
UK business
Trading in the UK market was also in line with expectations for the quarter, with significant sales to three major surveillance customers, including the contract reported as delayed at the half-year. We continue to win orders and make shipments to existing UK customers who are replacing their TETRA radios. In total, we have now received replacement orders from 14 customers and started delivery on 12 of these. To date, we have retained all of our customers during this replacement cycle. We have also secured and delivered a major shipment to the Irish Ambulance Service, our first win with this customer.
Current Trading and Outlook
Trading in the first three weeks of January remains in line with expectations and the outlook for revenue and earnings for the year to 31 March 2009 remains unchanged from the half-year announcement. Revenue in the UK continues to come from police replacement business as well as sales to the Department of Health under the Airwave Ambulance contract. Major sales in the International business are expected to come from Germany, Malaysia and Hungary. The Company expects its next report to shareholders to be the Preliminary Results Announcement for the year ended 31 March 2009, which it plans to issue during the first week of June. This will be followed by the Company's Annual Report & Accounts, intended to be issued in late June, and the AGM which is due to take place in July. A confirmatory announcement of the final dates for each of these will be made in due course.
For further information please contact:
Sepura plc Tel: 01223 876 000
Phil Nolan, Chairman
Gordon Watling, Chief Executive Officer
Steve Crowther, Chief Financial Officer
Powerscourt (Media Enquiries) Tel: 020 7250 1446
Keith Brookbank
Cautionary Statement:
This Interim Management Statement contains certain forward-looking statements with respect to the operations, performance and financial condition of Sepura. By their nature, future events and circumstances can cause results and developments to differ from those anticipated. Nothing in this Interim Management Statement should be construed as a profit forecast. No undertaking is given to update the forward-looking statements whether as a result of new information, future events or otherwise.
Notes to Editors:
About Sepura
Sepura is a global leader in the design, development and supply of TETRA (TErrestrial Trunked RAdio) digital mobile radios, used predominantly by the emergency services around the world as well as in the military, transportation, utilities, local government and commercial sectors.
The TETRA standard was developed mainly for public safety professionals. It facilitates reliable radio communication at all times and offers secure voice and data transmissions - free from the possibility of eavesdropping. Sepura has rapidly expanded across the world with a network of more than 90 regional partners that sell and support locally its market-leading products in over 90 countries. It is now the market leader in more than 25 countries.
Sepura's development expertise is focused entirely on TETRA radio terminals, and the Company offers the broadest range of TETRA products available. It is the market leader in the supply of surveillance and other specialist TETRA radios and accessories.
Based in Cambridge, England employing some 300 employees, Sepura was admitted to the Official List of the London Stock Exchange on 3 August 2007.
For further information please visit www.sepura.com
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