Sondex PLC
10 October 2005
Sondex plc
("Sondex" or the "Company")
Russian contract and pre-close update
Russian contract
Sondex is pleased to announce that it has won an important contract in its
wireline division from a major Russian gas producer. The order, valued at around
$2.5 million, is the first significant order for wireline products from the
region. The equipment will be used to inspect the condition of older wells such
that remedial actions can take place to increase production. This contract
builds on the presence and growing reputation of Geolink in the region. Geolink
was acquired by Sondex to form the core of its drilling division in June 2004.
Pre-close update and reporting dates
Sondex will be re-presenting its financial results for the year ended February
2005 under International Financial Reporting Standards in a transitional
statement announcement planned for 23rd November.
The interim results for the 6 months ended August 2005 will be announced on 14th
December. These results are expected to show organic like-for-like revenue
growth in Sondex wireline division in excess of 50%, with Geolink also making a
significant contribution to the Company, particularly from strong sales in Latin
America. Total revenues are expected to be nearly double the comparable period
last year. The Company's order book remains at an all time high. Investment in
the supply chain is being made in a timely manner in order to increase capacity
to fulfil the current demand. In the short term this investment will put some
pressure on margins and working capital. Sondex is confident of achieving full
year earnings in line with market expectations.
The Board also continues to review opportunities to accelerate earnings growth
through selective acquisitions.
Sondex will be meeting with analysts during the week commencing 10th October to
discuss the contents of this release, but no further material new information
will be given.
Martin Perry, Chief Executive of Sondex commented:
"We are delighted to have won this Russian contract. Russia has exciting
potential for Sondex, and both our divisions are now building a presence and
reputation.
The Company has continued to perform well and we are continuing to invest in
order that we may take full advantage of the on-going positive market
conditions. We are confident of achieving growth of our full year earnings in
line with expectations."
10 October 2005
ENQUIRIES:
Sondex Tel: 0118 932 6755
Martin Perry (Chief Executive)
Chris Wilks (Finance Director)
College Hill Tel: 020 7457 2020
Nick Elwes
Ben Brewerton
This information is provided by RNS
The company news service from the London Stock Exchange
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