RNS Number : 9020H
Scotty Group PLC
02 March 2010
SCOTTY Group plc ("SCOTTY" or "The Company")
Trading Update
SCOTTY Group plc is pleased to provide the market with an update on the Company's progress.
It is anticipated that the audited results for the 17 months to 31 December 2009 will be announced at the end of March. Our preliminary unaudited estimate indicates that the pre-tax profit for the period will be in the region of £0.2m, from a turnover of approximately £7m, in line with market expectations. Post-tax results are expected to be higher, owing to a reduction in Austrian deferred tax provisions.
The new financial year is seeing revenues to date slightly in excess of management's expectations. These revenues are coming from projects that we announced in the autumn, together with the continued roll-out of the deliveries of the PV project for Eurocopter. Short turnaround, unbudgeted revenue for our mobile units is a welcome development, as is an increase in our maintenance and upgrade revenue for systems delivered in prior years.
The King Air aircraft demonstrator, equipped in August 2009 with our aero surveillance systems by Stevens Aviation, is performing very well and attracting interest for potential projects in the US and elsewhere. The potential business for similarly equipped Diamond DA42 aircraft remains encouraging. A number of new projects have been identified recently, and other projects involving several new systems are at an advanced stage of negotiation.
At the time of our second interim report, in October 2009, we stated that we had made further significant progress in broadening both our customer base and the range of applications where our systems can play an important role. Our research and development programmes are proceeding rapidly, such that we expect to be able to address further additional markets within the next few months.
SCOTTY's Chairman, Rt Hon Lord Trefgarne PC said: "We understand the frustration for our shareholders, and the consequent effect on the share price, when there is a lull in the announcement of new contracts. However, we are seeing an encouraging level of enquiries for new systems, particularly in the aero-surveillance market, and we are confident that we will be able to make further announcements of orders in the near future. In the meantime I would like to thank our shareholders for their continuing patience and support."
For further information:
SCOTTY Group plc 020 7653 9850
Kurt Kerschat, CEO
Bryan Smart
Threadneedle Communications 020 7653 9850
Graham Herring
Josh Royston
Allenby Capital Limited 020 3328 5656
Imran Ahmad
Nick Athanas
This information is provided by RNS
The company news service from the London Stock Exchange
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