Results for the year-ended 1 April 2016
Sepura (LSE: SEPU, 'the Group', the 'Company' or 'Sepura'), a leading global provider of critical communications solutions, today announces its unaudited preliminary results for the year ended 1 April 2016.
FY16 financial performance
- Group revenue €189.7 million (2015: €131.2 million)
- €44.7 million contribution from Teltronic
- 250,000 devices shipped, up 15% on FY15 (217,000)
- Record order backlog of €75 million
- Adjusted EBITDA1 €16.5 million (2015: €17.0 million)
- Adjusted operating profit1 €12.4 million (2015: €15.0 million)
- Pretax loss €19.0 million (2015: profit €16.7 million)
- Closing net debt €119.4 million (2015: €1.1 million)
- Net debt increase as a result of Teltronic acquisition and working capital
Capital structure revised to strengthen balance sheet
- Proposed Firm Placing, and Placing and Open Offer (the "Capital Raising") announced today to raise gross proceeds of £65 million
- Debt facilities amended in conjunction with the Capital Raising
- No final dividend recommended (interim dividend paid of 0.79p per share)
Management actions taken to revise business model - impacting FY17 financial performance
- Focus on geographies and verticals with market leadership
- Cost reduction programme well advanced
- Improve working capital efficiency and increased focus on cash generation
Growth drivers intact
- Long-term structural drivers remain in Professional Mobile Radio ("PMR") market through the transition to digital
- Transportation and North America remain growth areas
- Teltronic acquisition enhancing growth in key markets
Gordon Watling, Sepura Chief Executive Officer, said:
"The fund raising announced today will significantly strengthen our balance sheet and provide the right capital structure to support our growth strategy.
"We see significant opportunities to build on recent success in the global transport sector such as New York City Transit, as well as grow our business in North America - the world's largest PMR market. We also expect FY17 and beyond to benefit from our recent investment programmes.
"We have revised our business model
and our financial focus is firmly now on cash conversion, improving
operating margins and increasing our revenue visibility with
contracted and recurring business. The Board believes that the
Group is well positioned to exploit key growth markets."