Last checked at 26 Apr 2012 07:00
26 April 2012
Sarantel Group PLC
Trading update
Sarantel Group PLC, (AIM: SLG, "Sarantel" or "the Group"), a leading manufacturer of high-performance, miniature antennas for mobile and wireless devices, announces a trading update for the six months to 31 March 2012.
First-half revenues were £0.9m (2011: £1m) with a net cash balance at 31 March 2012 of £0.2m and a further £165,000 tax credit received during April.
Production revenues increased by 9% during the first-half, with significant growth in the military market. However, development revenues in the first-half decreased as the Group successfully completed several large military development projects at the end of the financial year 2011.
Sarantel's progress in the military market continues to build momentum and has resulted in a substantial order from a leading military radio manufacturer, as reported on 8 February 2012. The order forms part of a multi-year supply contract. This order, together with a number of significant supply agreements secured throughout 2011, is expected to have a material impact on second half revenues and beyond.
With support from a major customer and the Group's bank, HSBC, Sarantel obtained a £2m secured loan facility, as reported on 1 March 2012. This will provide additional working capital to support the revenue growth that Sarantel expects in the second half.
David Wither, Chief Executive of Sarantel, said:
"The military contracts we have secured underscore Sarantel's position as a supplier of leading antenna technology. With our recently agreed loan in place, and a firm order book of just over £2m compared to £400k this time last year, we look forward to strong growth in revenues for the second half of the financial year."
Enquiries
Sarantel Group PLC | 01933 670 560 |
David Wither, Chief Executive Officer | |
Nicola Malyon, Chief Financial Officer | |
Beaumont Cornish Ltd (Nominated Adviser) | 020 7628 3396 |
Roland Cornish/Michael Cornish
| |
XCAP Securities PLC (Corporate Broker) | 020 7101 7070 |
Jon Belliss/Karen Kelly
| |
College Hill | 020 7457 2020 |
Kay Larsen/Rozi Morris |
About Sarantelwww.sarantel.com
Sarantel is a leader in the design of high-performance miniature antennas for portable wireless applications. Sarantel's revolutionary ceramic filtering antennas offer dramatically improved performance over existing antenna designs, resulting in a clearer signal, better range and a 90 per cent reduction in the amount of signal radiation absorbed by the body. Because of their smaller size and higher capabilities, Sarantel's antennas enable manufacturers to create innovative wireless products for the GPS, WiMax, Satellite Radio and Satellite phone markets.