SEPU.L Regulatory News (SEPU)

3 Mar 2008 07:01

Sepura PLC03 March 2008 Trading Update Sepura plc (the "Company"), a global leader in the design, manufacture andsupply of TETRA digital radios used predominately by the emergency services,today issues the following trading update. This follows the Interim ManagementStatement ("IMS") of 15 February 2008 in which the Company stated that theBoard's expectation for the current financial year remained broadly unchangedbut would depend on the delivery profile of two UK projects that had alreadybeen won. Since the time of the IMS, there has been a major change in the roll-out plansof one of the UK contracts. This has led to a shipment delay from the currentfourth quarter into the next financial year of a significant amount of revenuerelating to this contract. The other contract is also likely to deliver lessrevenue than previously expected this financial year. The revenue forecast of the international business for the current financialyear is now broadly in line with management's expectations. As a result, the Board's view is that the Company's revenue for the year to 31March 2008 will be around 10% below its expectations, with the consequentialimpact to operating profit and earnings. Phil Nolan, Non-Executive Chairman commented: "Whilst the delay in revenue is disappointing, we have consistently highlightedthe difficulty in forecasting TETRA shipments on a quarterly basis. This revenuedelay results principally from changes to the timing of shipment on contractsthat have already been won. Nevertheless, the business will again showsignificant revenue growth in the current financial year and the externalconsensus is that the market will continue to grow strongly in the coming years. In view of the continuing strong demand for our products demonstrated by ourincreasing market share, the outlook for the business remains extremelypositive." Contacts Powerscourt Sarah Daly / Keith Brookbank Tel: 020 7250 1446 This information is provided by RNS The company news service from the London Stock Exchange