Sarantel Group PLC
12 November 2007
12 November 2007
SARANTEL GROUP PLC
Year end trading update
Sarantel Group PLC (AIM: SLG), the leading manufacturer of revolutionary
filtering antennas for mobile and wireless devices, is publishing a year end
trading update for the 12 months to 30 September 2007.
Sales for the year remained depressed as highlighted in the Group's interim
results and are expected to be in the order of £2m for the year. This is
principally due to the slower than expected development in the handheld GPS
market affecting take up of the Group's 2nd generation GPS antenna and lower
than expected volumes of portable satellite radio units sold. However, the
Group has continued to reduce its cost base and has cut its cash outflow by 19%
in the second half compared to the first half of the financial year. At 30
September 2007, the Group had cash balances of £2.4m, of which £0.7m is held to
secure leasing liabilities.
The Board remains confident about the Group's medium term prospects particularly
as it believes that the mass market adoption of hand portable GPS navigation
devices is now beginning to develop.
Specifically in its core GPS navigation business Sarantel has made good progress
including:
Hand Portable GPS
• Sarantel has received break-through production orders for a hand portable
outdoor GPS navigation device, to be launched in early 2008, from a top
tier GPS device supplier. This design win is significant as it is a
break-in to a highly reputable mainstream GPS supplier and confirms that
Sarantel's technology plays a key role in GPS devices operating in
demanding electronic environments.
• Sarantel has recently received production orders for a new generation of
Golf range finder products from SKYGOLF.
• Sarantel's new generation GPS P3 antenna, a small antenna measuring
7.5 x 12mm, has been selected as an optional GPS antenna in a UMPC
reference design by Intel.
Automotive GPS
• Sarantel has received production orders from a Fiat supplier for an
innovative personal navigation device for the newly launched Fiat 500.
At the Interim results, the Board stated that it planned to diversify the
Group's product portfolio to ensure Sarantel generated short-term revenues
whilst the high-volume hand portable GPS business developed toward mass
adoption. Sarantel has begun to see successful early results with this
strategy, including:
Mobile Satellite Services (MSS)
• Sarantel has signed an agreement with Terrestar Networks, an emerging
mobile network operator. Terrestar plans to build, own and operate North
America's first 4G integrated mobile satellite and terrestrial
communications network and the agreement is for a fully-funded feasibility
study into the use of Sarantel's antenna solution for their future mobile
handsets.
Military GPS
• Sarantel is in discussions with a number of suppliers to the US military
sector, for the use of its GPS antennas. This new and exciting market
enables the Group to highly leverage the capabilities of its antenna
technology.
The Board is confident that these recent developments demonstrate that the
Group's antenna technology provides the best solution for high-performance
applications. It remains convinced that Sarantel will play an important role in
the high volume hand portable GPS navigation market as it reaches critical mass.
Sarantel expects to publish its preliminary results for the year to 30 September
2007 in early 2008.
For further information please contact:
Sarantel Group PLC 01933 670560
Geoff Shingles, Chairman www.sarantel.com
David Wither, Chief Executive
Sitkow Yeung, Finance Director
Ambrian Partners 0207 776 6400
Tim Goodman
College Hill 0207 457 2020
Adrian Duffield / Ben Way
Notes to Editors:
Sarantel is a leader in the design of high-performance miniature antennas for
portable wireless applications including hand-held navigation, satellite radio
and laptop computers.
Sarantel's revolutionary ceramic filtering antennas offer dramatically improved
performance over existing antenna designs, resulting in a clearer signal, better
range and a 90 per cent reduction in the amount of signal radiation absorbed by
the body.
Because of their smaller size and higher capabilities, Sarantel's antennas
enable manufacturers to create innovative high-volume consumer products
incorporating technologies such as GPS, Satellite Radio, WiMax and Mobile
Satellite Services.
This information is provided by RNS
The company news service from the London Stock Exchange KLFBDFBLFBB
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