4th Apr 2016 07:41
LONDON (Alliance News) - Sepura PLC on Monday said its earnings before interest, tax, depreciation and amortisation in its recently ended financial year will be lower than expected.
Shares in Sepura were trading down 28% at 143.00 pence early on Monday following the announcement.
The communications provider said its adjusted Ebitda for the year ended April 1 will be between EUR16 million and EUR20 million, missing expectations for the year. It said this was due to two significant orders being delayed into the first quarter of the new financial year, as well as a EUR2.6 million hit from adverse foreign exchange rates.
The DMR and Applications businesses performed below expectations during the year, Sepura said, but the Teltronic mobile radio business which it acquired last year performed ahead of expectations, achieving higher cost synergies than anticipated of EUR4 million.
Sepura said it expects to report revenue of between EUR190 million and EUR200 million in the year, while its financial 2017 expectations have been maintained.
Sepura's year-end net debt position is also significantly higher than market expectations at EUR120 million. This was due to an expansion of working capital following the contract delays, together with further costs relating to the Teltronic acquisition, but Sepura said it expects the working capital expansion to "significantly unwind" during the new financial year.
The company said its debt providers waived any potential breach of year end covenants, following talks about "liquidity requirements and the possibility of covenant breaches".
By Karolina Kaminska; [email protected] @KarolinaAllNews
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