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17 Apr 2013 07:00
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Sepura PLC
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("Sepura", the "Company" or the "Group")
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Trading update
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Sepura, a global leader in the design, development and supply of TETRA digital communications solutions, today issues a trading update in relation to its financial year ended 29 March 2013.
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Highlights
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Β§ Revenues and profits for the year expected to be ahead of market expectations
Β§ Gross margin in line with consensus
Β§ Operating cash conversion of over 100%
Β§ Net cash position at year end of β¬6.6 million (2012: β¬6.4 million)
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Trading update
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The Company expects to report revenues within a range of β¬103 - β¬105 million for the period, an increase of approximately 25% over the prior year and ahead of market expectations. Significant contributors to this growth include:
Β§ 3T, which is expected to contribute β¬11 million of revenues for the period since its acquisition in May 2012
Β§ ATEX, where Sepura has delivered approximately 8,500 ATEX radios during the year
Β§ Germany, where the Company delivered approximately 46,000 radios to German public safety users during the year following an acceleration of call-downs under its existing framework contracts
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The increased revenue, combined with tight control of operating expenses, is expected to result in adjusted operating profits being ahead of market expectations.
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Cash flow and net cash
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The Company expects to report a strong year of cash generation with operating cash conversion of over 100%. This has enabled the early repayment of all borrowing drawn down for the acquisition of 3T. After capital expenditure, payment of dividends and the share buy-back, the Company expects to report net cash at year-end of β¬6.6 million (2012: β¬6.4 million).
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Outlook
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Although government investment in many territories continues to be restricted by budgetary constraints, the Company's actions to diversify its product portfolio have enabled it to grow revenues in the year and are expected to lead to further growth in the year ahead. This will be partly balanced by an increased level of investment to improve the medium term growth outlook for the Group. More detailed guidance will be provided when the Company presents its final results.
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Commenting on today's trading update, Sepura's Chief Executive, Gordon Watling said: "We have delivered record revenues as a direct result of the investment we have made to expand and enhance our product portfolio, including the launch of ATEX and the acquisition of 3T. We see further opportunities to invest in our product portfolio as well as expanding into new markets to further enhance the medium to long term prospects of the Group. We are confident that we can achieve our targets for the coming year."
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The Company expects to announce its audited results for the year ended 29 March 2013 on Tuesday 4 June 2013.
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- Ends -
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For further information please contact:
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Sepura plc Gordon Watling, Chief Executive Officer Steve Chamberlain, Chief Financial Officer Peter Connor, Investor Relations Β | +44 (0) 12 2387 6000 |
Pelham Bell Pottinger Archie Berens Olly Scott Charles Goodwin Β | +44 (0)20 7861 3232 |
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Cautionary statement
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This trading 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 trading 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.
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Notes to Editors
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About Sepura
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Sepura is a global leader in the design, manufacture and supply of TETRA (TErrestrial Trunked RAdio) products and systems developed specifically for critical communications applications. The Group's customers span the emergency services, transport, utilities, extractive industries and other commercial sectors. Sepura is also a market leader in the supply of surveillance and other specialist TETRA radios and accessories.
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The Company offers one of the broadest ranges of TETRA products available and is often first to deliver innovative products and features to its markets. The recent acquisition of specialist TETRA infrastructure systems supplier, 3T, enhances Sepura's capability through the addition of powerful and easy-to-deploy systems.
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Founded in the UK in 2002, Sepura has expanded rapidly across the world and is now a market leader in over 30 countries, with a network of regional partners that sell, and provide local support for, its market-leading products.
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Based in Cambridge, England and with over 300 employees, Sepura was admitted to the Official List of the London Stock Exchange on 3 August 2007.
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www.sepura.com
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