Screen Technology Group plc
23 June 2006
For immediate release 23 June 2006
Screen Technology Group plc
Trading update
Screen Technology Group plc ("Screen Technology") wishes to update shareholders
on current trading and prospects..
The Company's sales pipeline continues to be strong and at the recent exhibition
at Infocomm in Orlando Florida in June, the ITrans product was very well
received with extremely high levels of interest from end-users and distribution
partners.
Two parallel developments of modular ITrans products, one in-house and a second
in conjunction with an OEM partner, are also now progressing and the first
prototype modular ITrans products were shown at Infocomm. These modular products
enable very large ITrans screens to be easily transported to customer sites in
modular form and assembled in situ and the business expects these products to
form a increasingly significant part of sales from early 2007.
As previously stated, the key objective is now to increase the Company's
production capacity. The issues encountered earlier in the year with production
have been resolved and yields of ITrans display tiles have improved. The
development of the high-speed production machines is continuing with each of the
production stages within those machines working well. Our strategy during the
year has been to concentrate on the production of demonstration units and we
have been upgrading existing demonstrator stock with the latest in production
quality to ensure that ITrans is shown to high-value end-users in the best
possible light. The Board believes that this has been a successful strategy.
The business in poised to increase production and sales in the second half of
2006. However the Board is mindful that production schedules and therefore sales
by the end of 2006 depend critically upon timing and that even with high-speed
production running at capacity by the end of the year, some sales previously
expected this year are likely to move into early 2007. The unpredictability of
production schedules over the next few months might also increase the time
between production of tiles and the despatch of finished displays to customers.
The sales forecast for 2006 was heavily dependent on the delivery of the new
high speed production machines and on the sale of modular products. The timing
of both of these has been affected by delays by third party suppliers that will
have a consequential impact on sales for 2006. The Board's current expectations
therefore are that sales for this year are likely to be significantly below
current market expectations. However, the board is confident that by the start
of 2007, high speed tile production will be well underway and modular products
will also be in production, supplying a very strong order book. The board
therefore believes that any effect on sales forecasts for 2007 will be small.
Tom Jarman, Chief Executive said:
"2006 will be a defining year for Screen Technology. By the end of the year we
expect to have high speed production of ITrans, a technology that is unrivalled
in a very large and growing international market. We expect to have proven the
product and our pricing model with customers and to have increased our range of
products with modular systems fully available in 2007."
For further information please contact:
Screen Technology Group plc www.screentechnology.com
Tom Jarman, CEO 01223 559600
Simon Barton, Finance Director
Isabel Podda, Buchanan Communications 020 7466 5001
Notes to Editor
Screen Technology is the designer and manufacturer of revolutionary
high-resolution large-screen displays designed for high ambient light
environments.
The high resolution and high definition of the Company's displays give a
high-quality image suitable for advertising images and video as well as public
information displays. They are visible at short viewing distances as well as
across larger venues making them particularly suitable for large retail outlets,
shopping malls, control rooms and transport concourses where customers might be
within 10m of the display, a distance at which LED display technologies become
unsuitable. The high brightness means that the displays are also easily visible
in the kind of high ambient light environments where conventional LCD or plasma
technologies become unusable.
Screen Technology's patent protected technology uses moulded optical fibre tiles
to produce seamless large displays using standard production LCD panels. The
scaleable modular technology enables screen to be built in a wide variety of
shapes and of theoretically unlimited size.
Screen Technology Group plc listed on AIM, a market operated by the London Stock
Exchange, on 1 August 2005.
This information is provided by RNS
The company news service from the London Stock Exchange
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