Sondex PLC
27 July 2005
Sondex plc
("Sondex" or the "Group")
Trading Update and Results of Annual General Meeting
At Sondex's Annual General Meeting held today Iain Paterson, Chairman of Sondex,
made the following comments:
"In the last twelve months Sondex has demonstrated considerable growth and made
significant progress upon all fronts.
The year has seen the successful integration of Geolink, acquired in June 2004,
which now forms the basis of a new division focused on drilling technology,
whilst Computer Sonics Systems, acquired in December 2003, has become a
significant part of the Wireline division and additionally provides a valuable
platform for Group sales into Canada.
The Group has opened a new high quality facility in Hampshire which houses the
Wireline division's final product assembly, doubling internal production
capacity. Further international expansion has taken place in Canada, the Middle
East and China, which has now become the largest geographical market for Sondex.
Sondex has continued to invest in the future, in particular committing over 10%
of revenues to R&D. New products and new generation technologies have been
introduced across the range, helping maintain and expand the customer base.
Current industry conditions are favourable and trading within the Wireline
division in particular is very encouraging. In the Drilling division, a step-up
in business since the Geolink acquisition is being maintained, and further
benefits are expected once the results of increased investment in product
development and international marketing are realised. Sondex's revenues are
normally biased towards the second half of the year, and this year is expected
to follow that trend.
As over 80% of sales are denominated in U.S. Dollars the recent strengthening of
the Dollar will benefit reported revenues. However, as all Group debt is
denominated in U.S Dollars and hedging instruments are in place to protect the
current year's earnings against further weakening, this benefit will be
counteracted at the eps level
We anticipate another successful year and are well placed for further growth."
The board of Sondex is pleased to announce that all of the resolutions proposed
at the AGM were duly passed.
27 July 2005
For further information, please contact:
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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