Sarantel eyes full year revenue spike

Sarantel, which makes miniature antennas used in mobile phones, said it expects full year revenue to surge by more than a third as several military programmes move into production.

Revenues for the year ended September 30th 2012 are expected to be 35% higher than the previous financial year at £3m.

Sarantel said it recently secured a £200,000 follow-up production order for its rugged GeoHelix GPS antenna, which is used in the US military's Joint Tactical Radio System (JTRS) programme. As announced in July, the US Army has indicated a requirement to purchase more than 190,000 JTRS radios over a five year period.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Chief Executive David Wither said: "Sales growth in the second half has been encouraging and we continue to focus on the progress required to reach break-even."

The group, which has sold or sampled its antennas to more than 260 new customers during the year, said it remains confident about the longer term prospects for its technology as its GeoHelix antennas deliver a level of positional accuracy and reliability essential for a rapidly growing number of location-sensitive applications.

"Our growth potential is currently restrained by our limited sales and engineering resource. However, our leading-edge technology positions us well to benefit from increasing military demand for safety critical applications, along with growth in mobile social networking and location-based advertising in the consumer market," the group added.

As of September 30th the group had cash balances of £0.1m.

CJ