AGM Statement
10 Septembre 2003 - 12:00PM
UK Regulatory
RNS Number:5921P
Radstone Technology PLC
10 September 2003
For Immediate Release 10 September 2003
Radstone Technology PLC
Annual General Meeting
Chairman's Statement
Speaking at today's Annual General Meeting of Radstone Technology PLC
("Radstone"), the world's leading independent supplier of high-performance,
embedded computer products for defence and aerospace applications, the Chairman,
Rhys Williams made the following Statement:
" Last week we announced the successful completion of our acquisition of
Interactive Circuits & Systems Limited based in Ottawa, Canada. I would like to
take this opportunity of welcoming the ICS employees to the Radstone Group. We
believe the enlarged business will significantly enhance Radstone's existing
strong position in the embedded computing industry.
For the existing Radstone Group, trading in the first five months of the year
has been in line with expectations. As outlined in the preliminary announcement
in June and the prospectus issued on 8 August 2003, Radstone has been affected
by some short-term variations in delivery requirements. Sales for the first
five months were #12.6 million, some 9% below the equivalent period last year.
Cash generation continues to be strong, with net cash of #1.8million, compared
to #0.6million at the year-end. The net cash position takes into account the
payment of #1.4million for the land associated with the construction of the new
facility for the Embedded Computing business and the Group head office
New orders totalled #24.1 million, some 34% ahead of the same period last year.
With a strong book to bill ratio of 1.91, the order book has increased to
#73.8million from #62.7million at the beginning of the year.
Embedded Computing Business
The senior business of the Radstone Group had a strong order intake in the first
five months of the year with a major UK multi-year production order the main
feature.
As in several recent years, the pattern of short-term customer schedules had an
adverse effect on deliveries in the early part of the period, resulting in sales
at the five month point some 10% below last year's level. Trading will once
again be heavily weighted towards the second half of the year and we remain
confident in the long-term prospects of this business.
Electronic Manufacturing Services Business
UK industrial activity shows few signs of improvement, with third-party
shipments 7% below last year's #4.9 million. However, based on current
enquiries and the order book for future delivery, the second half of the year is
expected to show a higher level of activity.
During July the Towcester based part of the EMS business was relocated to Milton
Keynes. The move was achieved in less than four days with a minimum amount of
disruption to production.
Laboratory, Office and Manufacturing Facilities
During July we received planning permission for our new facility in Towcester
and construction began in August.
Management
Dr Charles Paterson, who has led the Company from the Management Buy Out in 1988
and a Listing on the London Stock Exchange in 1994, retires at this AGM. Under
his vision and leadership Radstone has developed into an innovative business at
the forefront of its market, with a market capitalisation of almost #100 million
compared to #19 million at the initial listing. I am sure shareholders will
join me in wishing Charlie a long and healthy retirement.
As I announced at the time of the last AGM, Jeff Perrin, who has been the
Company's Finance Director since 1989, will be appointed Group Managing Director
following Dr. Paterson's retirement.
In March of this year we appointed Kevin Boyd as Finance Director-Designate;
today he will be appointed Group Finance Director.
Outlook
As outlined in the prospectus, the addition of the ICS products to the Radstone
portfolio is a major step in our strategy of providing customers with a complete
set of system elements, from sensor data acquisition through to data
presentation to operators.
With the continuing strong order book and the benefits of the ICS acquisition,
the Board's confidence in the long-term prospects for the Group, in a buoyant
defence market, remains high."
Rhys Williams
Chairman
Radstone Technology PLC
-ends-
Date: 10 Sept 2003
For further information please contact:
Radstone Technology PLC Buchanan Communications
Jeff Perrin, Group Managing Director Tim Thompson
Kevin Boyd, Group Finance Director Nicola Cronk
01327-359444 020 74665000
Web: http://www.radstone.co.uk E-mail: nicolac@buchanan.uk.com
For more information about Radstone Technology PLC and its business, products
and services, visit the company's web site at: http://www.radstone.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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