Sepura in shape for global growth
The company‘s cost reduction programme was driving further operational efficiencies
Sepura, the Cambridge based specialist in TETRA digital radios, anticipates strong international growth as it rolls out a new generation of products into more global territories.
CEO Gordon Watling reveals that Sepura is on track for a Q4 launch of its new ATEX products. “The forthcoming launch of our ATEX products, combined with strengthening gross margins and the operational efficiencies resulting from our recent restructuring, gives us a solid platform from which to achieve our full year targets,” he announced with the company’s interim results. Sepura was bang on target for the six months to September 30. The UK company generated strong commercial revenues despite a challenging market backdrop. Its revenues of £28.4m were in line with expectations. And Sepura achieved the forecast gross margin improvement - strengthening to 45.3 per cent.
Watling said that the company‘s cost reduction programme was driving further operational efficiencies. The restructuring had been completed with forecast cost savings of £1.7m in FY12.
Sepura has also paid attention to its balance sheet. A term loan was repaid in October and a new £18 million credit facility secured for five years. The company was sufficiently confident to hoist the interim dividend seven per cent to 0.48p per share.
During the half-year, Sepura delivered 63,000 radios to customers in 65 countries and reported increasing demand from commercial customers who represented 17 per cent of revenues - up from nine per cent in H1 last year. Seven countries bought over £1m of products and services, compared to five countries in H1 last year.
Watling said: “We are encouraged by the resilient demand in our core markets and the increased demand from our commercial sector customers. “Our business is as usual weighted to the second half of the year. However, the forthcoming launch of our ATEX products, combined with strengthening gross margins and the operational efficiencies resulting from our recent restructuring, gives us a solid platform from which to achieve our full year targets.”
Source: www.businessweekly.co.uk
