Radstone Technology PLC
07 September 2006
NOT FOR RELEASE OR DISTRIBUTION IN OR INTO AUSTRALIA,
CANADA OR JAPAN.
For Immediate Release 07 September 2006
Radstone Technology PLC ("Radstone" or the "Company")
Chairman's AGM Statement
'Strong Order Book'
'Unanimous Rejection of Eurotech's Inadequate Offer'
At today's annual general meeting of Radstone Technology PLC, a leading
independent supplier of high performance, embedded computer products for defence
and aerospace applications, the Chairman, Rhys Williams will make the following
statement:
"In our preliminary announcement in July 2006 I stated my intention to retire at
the AGM. Following the hostile offer from Eurotech, your Board has requested
that I remain as Chairman until such time as the matter is concluded. It is
therefore the intention of the Board to re-appoint me as a director and Chairman
of the Company following this meeting.
As is customary at this time I will now comment on current trading.
Sales and Order Book
Group sales in the first five months are running ahead of the same period last
year. New orders have sustained the order book at a high level with an increase
of 5% over the same period last year, despite a 7% reduction in the US dollar /
sterling exchange rate. These new orders include the previously announced
contract wins with Astronautics on the A400M Military Transport Aircraft and
Thales on the Watchkeeper Unmanned Aerial Vehicle programme. Orders in hand for
delivery over the next seven months amount to £28.2 million compared to £23.3
million at the same time last year. As in previous years, deliveries are very
likely to be heavily biased towards the second half of the year.
Contract Extensions
In addition to the order book, we are expecting an increase in value, in the
near term, to existing major contracts including both the Abrams M1A2 tank and
the Eurofighter Typhoon, as a result of the following recent developments:
•General Dynamics Land Systems announced that it has won additional
contracts to upgrade M1A2 tanks. These contracts currently include an order
to upgrade 72 tanks being returned from Iraq, 60 additional upgrades of US
Army tanks and an order from Saudi Arabia for the upgrade of 373 tanks.
•BAE Systems has announced that it has secured a contract with Saudi
Arabia for the supply of 72 Eurofighter Typhoons. Radstone expects shortly
to receive additional orders for the processor boards to be used on these
aircraft.
These contract extensions will be worth in excess of £9 million to Radstone.
New Design Wins
It has been a productive period for new design-wins, the most notable of which
was for the central electronics unit for the US Army's non line of sight missile
(NLOS) System. NLOS is part of the US Army's $118 billion future combat system (
FCS) and is planned to be one of the first parts of this system to be deployed.
We expect the production contract for this programme to be our second largest
contract by value, after that for the Abrams M1A2. In addition we have also
received an order for development units for the US Navy, which is considering
deploying the NLOS system on surface ships.
Another notable design win involves Octec providing a tracking system for the
recently announced first successful autonomous in-flight refuelling test (where
an F/A-18 fighter aircraft under automatic control took on fuel in flight from
an Omega Air Boeing 707 tanker). This capability will be most relevant in the
fast growing unmanned airborne vehicle segment, where increasing mission
duration is crucial.
Prospects
In light of the strong order book, new design wins and expected extensions to
existing major contracts, your Board remains highly confident about the
prospects for the current year and beyond as an independent company. Accordingly
the Board unanimously continues to reject Eurotech's opportunistic offer as it
undervalues your Company and is neither in the best interests of shareholders
nor other stakeholders.
Your Board continues to explore all options to maximise shareholder value. A
more detailed response to the Eurotech offer will be sent to shareholders in due
course. In the meantime, we reiterate that shareholders are strongly advised to
take no action."
Enquiries:
Radstone plc For today: 020 7466 5000
Jeff Perrin, Chief Executive
Peter Cavill, Director
Close Brothers Corporate Finance Limited Tel: 020 7655 3100
Andrew Cunningham
David Wardrop
JPMorgan Cazenove Tel: 020 7588 2828
Julian Cazalet
Shona Graham
David Harvey-Evers
Buchanan Communications Tel: 020 7466 5000
Tim Thompson Mob: 07710 718 649
Nicola Cronk Mob: 07973 313 365
Susanna Gale
Close Brothers Corporate Finance Limited, which is regulated by The Financial
Services Authority Limited in the United Kingdom, is acting for Radstone and no
one else in connection with this matter and will not be responsible to anyone
other than Radstone for providing the protections afforded to customers of Close
Brothers Corporate Finance Limited nor for providing advice in relation to this
matter.
JPMorgan Cazenove, which is regulated by The Financial Services Authority
Limited in the United Kingdom, is acting for Radstone and no one else in
connection with this matter and will not be responsible to anyone other than
Radstone for providing the protections afforded to customers of JPMorgan
Cazenove nor for providing advice in relation to this matter
This information is provided by RNS
The company news service from the London Stock Exchange
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