SCO Scotty Grp

TIDMSCO

RNS Number : 0803U

Scotty Group SE

21 December 2012

21 December 2012

SCOTTY Group SE

("SCOTTY" or the "Group")

Trading Update

SCOTTY, the video telecommunications equipment and technology group with a focus on the government, defence and aviation markets, is providing the market with a further update on the Group's trading progress.

In our trading update on 7 September 2012, and our half year results to 30 June 2012 announced on 12 September 2012, we commented that negotiations with key customers were taking longer than expected, resulting in revenues being delayed compared with our expectations. Conversion of projects into firm orders is continuing to take longer than planned, owing to slippage in customers' programmes, including delays at short notice to the timing of some orders. As a result our revenues have experienced further slippage; we can report that turnover in the second half year will show an improvement compared with the first half, but the total for the financial year as a whole is expected to be between Euros 4.2 and 4.5 million, which is below management's expectations.

The Group's working capital remains adequate but tight; cash flow is currently benefitting from regular monthly shipments during the third and fourth quarter.

The Board has approved a cost reduction programme, both for the parent company, SCOTTY Group SE, and its Austrian operating subsidiary, SCOTTY Group Austria GmbH, aimed primarily at reducing personnel and administration costs by approximately Euros 0.4 million in 2013, whilst maintaining the Group's existing research and development capabilities.

A further update will be issued in due course.

Enquiries:

 
 SCOTTY Group SE 
  Kurt Kerschat, CEO                    +43 316 409 426 
 Nominated Adviser 
  Cairn Financial Advisers LLP 
  Tony Rawlinson / Avi Robinson         +44 20 7148 7900 
 Broker 
  Northland Capital Partners Limited 
  John Howes                            +44 20 7796 8800 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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