Update on Geocurve

RNS Number : 9872G

Strat Aero PLC

26 November 2015

 



Strat Aero plc / Index: AIM / TIDM: AERO / Sector: Support Services

26 November 2015

Strat Aero plc ("Strat Aero", the "Company" or the "Group")

Update on Geocurve

Strat Aero plc, the AIM listed international aerospace company focused on the rapidly emerging Unmanned Aerial Vehicle ("UAV") sector, announces an update on its 100% owned subsidiary, Geocurve Holdings Limited ("Geocurve"), which specialises in the provision of UAV operated topographical surveys and inspection services to a blue chip customer base. 

At the time of Strat Aero's acquisition of Geocurve at the end of September 2015, Geocurve, whose clients include the UK's Environment Agency, EDF Energy, Carillion and the RSPB, had a revenue base of approximately £1m per annum.  Since that time, Geocurve has increased its sales pipeline and now has circa £10m of potential business.  This includes:

·    £7m in flood defence and related surveying work, similar to its mapping of the Norfolk Broads National Park, combining UAV aerial and water surveying with its unique 3-D mapping software solutions, with two national organisations;

·    Up to £2m per annum using the quantitative capabilities of its UAV and 3-D mapping solutions to provide unique solutions to two national aggregates (quarry) industry participants; and

·    In excess of £1m of inspection opportunities for offshore assets for wind and other industries - these two opportunities are at an earlier stage and are likely to grow further.

Tony Dunleavy, CEO Strat Aero, said, "This is an exciting period for the Company as we focus on fulfilling our strategy to become an integrated global solutions provider in the UAV sector.  We anticipate Geocurve's pipeline of opportunities converting to contracts and revenue gradually during the course of next year.  It is encouraging to see that even at this early stage large clients have recognised the value of Geocurve's UAV services and are in active discussions with the Company, typically starting with test flights and assessments of data solutions required, with a view to entering into contracts.  This is without even yet bringing our capability to international markets, as intended, for which we see similar large opportunities developing.  

"As cautioned before, these large client contracts do take time.  However, combined with the rapid progress being made across the Group and increased growth momentum of the UAV market, we remain confident about the prospects for Strat Aero."

- ENDS -

For further information please visit www.strat-aero.com or contact:

Strat Aero plc	Tel: [phone]
Tony Dunleavy (Chief Executive)
Graham Peck (Chairman)
SP Angel Corporate Finance LLP	Tel: [phone]
Nominated Adviser and Joint Broker
Stuart Gledhill Jeff Keating
Beaufort Securities Limited	Tel: [phone]
Joint Broker Jon Levinson
Elliot Hance
Cornhill Capital Ltd
Colin Rowbury	[phone]
St Brides Partners Ltd	Tel: [phone]
Frank Buhagiar Charlotte Heap

Notes:

Strat Aero plc is a multi-divisional international aerospace services company, focussed primarily on the provision of complete client solutions in the Unmanned Aerial System ('UAS' market), which is predicted to show exponential growth over the coming decade.  Civilian, law enforcement and military applications in UASs are expected to be a dynamic growth sector in the aerospace industry over the next 10 years with the UAS market forecast to grow to more than US$82.1 billion between 2015 and 2025 (AUVSI Economic Report 2013) and the global airborne Intelligence, Surveillance and Reconnaissance ('ISR') market estimated to grow to US$19.23 billion by 2023. 

 

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