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31 Mar 2009 10:00
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SEPURA PLC
PRE-CLOSE STATEMENT IN RESPECT OF THE FINANCIAL YEAR ENDING 31 MARCH 2009
Sepura plc, a global leader in the design,Β developmentΒ and supply of TETRA digital radios, today issues the following pre-closeΒ statement in relation toΒ itsΒ financial year endingΒ 31 March 2009.
The Company has performedΒ as expected in the final quarter of the year and therefore trading results for theΒ fullΒ year, excluding exceptional itemsΒ asΒ noted below, will be in line withΒ itsΒ expectations.Β
WeΒ continue to make good progressΒ inΒ the importantΒ GermanΒ marketΒ and today announceΒ a further contractΒ winΒ forΒ the state ofΒ Bavaria.Β
FollowingΒ a comprehensive benchmarking review of ourΒ EuropeanΒ manufacturingΒ needsΒ we haveΒ agreedΒ a new contract with MELECSΒ EWS GmbH, which will result in immediate product cost savings to the Company.Β MELECS, formedΒ from Siemens'Β contract manufacturing businessΒ (SIMEA),Β hasΒ operations inΒ AustriaΒ andΒ Romania.Β OurΒ existing contract manufacturing relationship with TCB inΒ ChinaΒ has been extended toΒ coverΒ more of our product portfolio, and continues to perform strongly.
The CompanyΒ hasΒ also undertaken a major review of its internal operations andΒ as a resultΒ willΒ incurΒ the followingΒ exceptional charges which will impact the full year results:
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1. The Company's operations will be restructured to improve efficiency and streamline costs. This will result inΒ aΒ reduction of up toΒ 45Β permanent and temporary positions.Β AΒ provision of Β£1.3m will be made in this year's accounts to cover redundancyΒ and related costs.Β Collective consultation withΒ the StaffΒ CouncilΒ will beginΒ immediately.Β TheΒ cost reduction from the restructuringΒ will beΒ re-invested inΒ increasingΒ Sepura'sΒ internationalΒ salesΒ resource and in new product development.Β Overall,Β this will result in a small reduction in total operating costs.
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2. Sepura hasΒ also reviewedΒ itsΒ portfolio of development projects which has led toΒ an alternative,Β more cost effective approach onΒ someΒ of our projects.Β This will result inΒ a non- cash write-off of approximately Β£1.2m of non-current intangible assets.Β
ChairmanΒ Philip NolanΒ commented: "UnderΒ our new CEO the Company has taken a number of steps to streamline costs, refocus our development portfolio and add weight to our sales resource. This will position us strongly forΒ continued growthΒ in the TETRAΒ market. Our success in winning the firstΒ fourΒ tenders inΒ the importantΒ GermanΒ market highlightsΒ the competitiveΒ strengthΒ ofΒ the Company."
CEOΒ Gordon WatlingΒ commented:Β "The actions I have taken will significantly improve the efficiency of the business, allowing us to redirect resources into delivering more new products and increasing sales presence in key regions, both critical to driving the futureΒ sales and market shareΒ growth of theΒ Company."
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. A full update on all the above issues will be given as part of thatΒ announcement. 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 inΒ lateΒ 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
Paul Durman
Cautionary Statement:
ThisΒ pre-closeΒ statement contains certain forward-looking statementsΒ 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 thisΒ pre-closeΒ statementΒ 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.Β
Notes toΒ Editors:
About Sepura
Sepura is a global leader in the design,Β developmentΒ and supply of TETRAΒ (TErrestrial Trunked RAdio) digital mobile radios, used predominantly by theΒ emergency services around the world as well as in the military, transportation,Β utilities, localΒ government and commercial sectors.
The TETRA standard was developed mainly for public safety professionals. ItΒ facilitates reliable radio communication at all times and offers secure voiceΒ and data transmissions - free from the possibility of eavesdropping.Β Sepura has rapidly expanded across the world with a network of more thanΒ 90Β regional partners that sell and support locally its market-leading products inΒ 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, andΒ the Company offers the broadest range of TETRA products available. It is theΒ market leader in the supply of surveillance and other specialist TETRA radiosΒ and accessories.
Based inΒ Cambridge,Β England, andΒ employing some 350Β people, Sepura was admitted toΒ the Official List of the London Stock Exchange on 3 August 2007.
For further information please visitΒ www.sepura.com
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