Strat Aero PLC Trading Update (2729B)
03 April 2017 - 4:00PM
UK Regulatory
TIDMAERO
RNS Number : 2729B
Strat Aero PLC
03 April 2017
Strat Aero plc / Index: AIM / TIDM: AERO / Sector: Support
Services
3 April 2017
Strat Aero plc ("Strat Aero", the "Company" or the "Group")
Trading Update
Strat Aero plc, an international aerospace company focused on
the rapidly emerging Unmanned Aerial Vehicle ("UAV") sector,
announces a trading update ahead of its full year results for the
year ended 31 December 2016.
Overview
-- Significant increase in full year revenue to approximately
US$810,000 (2015: US$433,001) primarily due to the full year impact
of the acquisition of Geocurve, a specialist in the provision of
UAV operated surveys and inspection services to a blue-chip
customer base
-- Strong progress on cost reduction across the Group during H2
2016 - the Company anticipates a substantive impact to be visible
in FY 2017
-- FY 2016 financial performance significantly affected by the
Aero Kinetics acquisition and reported litigation with an
anticipated loss before and after taxation of approximately US$3.5
million (2015 loss before and after taxation: US$5.9 million) - a
Rule 11 settlement agreement was entered into in Q4 2016
-- Cash position strengthened in Q1 2017 by successful
completion of two placings totalling US$1.23 million (cash balance
at 31 December 2016: US$ nil approx. with an unutilised borrowing
facility of about US$270,000)
Iain McLure, CEO of Strat Aero plc, said "Since joining in April
2016, working closely with the board, we have revised and
implemented a sound commercial strategy including an aggressive
cost reduction programme. These actions have enabled us to
rationalise our business model and focus on our key strengths and
skills. It is with this strategy, to focus on key areas in Training
& Education and Survey & Inspection, that we have started
2017 with a rationalised business model, providing exposure to the
exceptional growth potential of UAVs, and the ability to materially
improve financial performance.
"By focusing on Strat Aero's key areas of expertise, driving
continued growth from the Group's Survey & Inspection
activities and through the growth of its Training & Education
business in Asia and other areas, it is my intention to achieve
breakeven at the operating profit level in the near term."
Strategic Focus
The Company's strategic focus in 2017 will remained centered on
Training & Education following the recently completed and
launched Strat Aero AutQ course, which was awarded NQE status by
the UK Civil Aviation Authority in the UK during 2016. Strat Aero
has appointed a new Director of Training and the AutQ course is
being rolled out via the Company's franchise partners in China and
in Malaysia.
In Survey & Inspection, Geocurve continued to grow
organically from existing contracts and significantly was awarded
the CH2M contract to work on the Thames 2100 Flood Defence Project
on behalf of the Environment Agency. This is a significant contract
which has involved innovative solutions being developed and
implemented by Geocurve. A structural review in Geocurve also lead
to significant cost reduction and management changes from which the
Company is starting to see real benefits.
Geocurve will continue to be at the forefront of innovation and
technology based solutions for its major clients and the Board will
seek to grow Geocurve's major client base as it continues to become
established and acknowledged experts in this field.
2017 is intended to be a year of consolidation and steady growth
as the Group builds upon its existing skills and expertise
developing the Strat Aero business as the premium provider of
commercial training and association for commercial UAV pilots in
Asia. In tandem with this, through Geocurve, the Company will
continue to be a worldwide leader in UAV and innovative technology
solutions in the Survey & Inspection business. The Board is
confident that the platform that has been established in H2 2016
and the improving operational performance is delivering a strong
foundation for future growth within the business.
- ENDS -
For further information please visit www.strat-aero.com or
contact:
Strat Aero plc Tel: +44 (0) 1293 804741
Graham Peck (Chairman)
SP Angel Corporate Finance LLP Tel: +44 (0) 20 3470
0470
Nominated Adviser and Joint
Broker
Stuart Gledhill
Jeff Keating
Beaufort Securities Limited Tel: +44 (0) 20 7382
8300
Joint Broker
Elliot Hance
Cornhill Capital Ltd
Joint Broker
Colin Rowbury Tel: +44 (0) 20 7710
9610
St Brides Partners Ltd Tel: +44 (0) 20 7236
1177
Financial PR
Frank Buhagiar
Susie Geliher
Notes
Strat Aero plc is a multi-divisional international aerospace
services company, focused primarily on the provision of complete
client solutions in the Unmanned Aerial System ('UAS' market),
which is predicted to show exponential growth over the coming
decade. Commercial and military applications in UASs are expected
to be a dynamic growth sector in the aerospace industry over the
next 10 years with the UAS market forecast to grow to more than
US$82.1 billion between 2015 and 2025 (AUVSI Economic Report 2013)
and the global airborne Intelligence, Surveillance and
Reconnaissance ('ISR') market estimated to grow to US$19.23 billion
by 2023.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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