LONDON (dpa-AFX) - Shares of Sepura Plc (SEPU.L) rose about 9 percent in the morning trade, as the company said its revenues and profits for the year are expected to be ahead of market expectations. The group expects to report revenues with a year-over-year increase of 25 percent. Looking ahead, the firm sees further growth in revenues in the year ahead.
Chief Executive, Gordon Watling stated, 'We have delivered record revenues as a direct result of the investment we have made to expand and enhance our product portfolio, including the launch of ATEX and the acquisition of 3T. We see further opportunities to invest in our product portfolio as well as expanding into new markets to further enhance the medium to long term prospects of the Group.'
In a trading update for the financial year ended March 29, the firm noted that its gross margins were in line with the consensus. The higher revenues, along with tight control of operating expenses, will result in adjusted operating profits being ahead of market expectations, it added.
The group, which develops TErrestrial Trunked RAdio digital communications solutions, said it expects to report revenues within a range of 103 million euros to 105 million euros, an increase of about 25 percent over the prior year and ahead of market expectations.
After capital expenditure, payment of dividends and the share buy-back, the company expects to report net cash at year-end of 6.6 million euros, compared to 6.4 million euros a year earlier.
The company expects to announce its audited results for the full year on June 4.
SEPU.L is currently trading at 108.8 pence, up 8.8 pence or 8.8 percent, on a volume of 468,666 shares.
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