24th Sep 2015 07:19
LONDON (Alliance News) - Strat Aero PLC Thursday reported a wider pretax loss in the first half of 2015 and said its revenue was "extremely disappointing" as it faced delays with contracts, and said it has appointed Tony Dunleavy as the company's new chief executive.
Shares in Strat Aero were down 16% on the news to 4.00 pence, one of the worst performers in the London market.
The aerospace company, which provides training, management systems and consultancy services to the aviation market, and which listed on AIM in November last year, said that its pretax loss in the six months ended June 30 was USD1.3 million, wider than the USD1.2 million it reported for the whole of 2014.
Its revenue was USD57,441 in the six months, compared with USD630,685 for its last full financial year, which it said was "extremely disappointing". Strat Aero said that financial performance was hit by shifting market dynamics and a lack of contract conversions, including delays to its training contract with the US Air Force, but said that considerable work has been done to underpin revenue generation capability in 2016 and beyond.
The company added that administrative expenses amounted to USD1.3 million in the first half, compared with USD1.5 million in the whole of 2014 due to fees associated with its IPO as well as staff salaries.
Revenue since the period end has remained below expectations, Strat Aero said, and although there are significant opportunities that may convert during the current year, the speed of conversion remains a risk. However, the company said it is confident that there is capability to create "very significant value" for shareholders within the next three years once leading industry players start to invest.
Separately, Strat Aero said that it has appointed Tony Dunleavy as the company's new chief executive, replacing Russell Peck who has stepped down with immediate effect.
Dunleavy is an accountant with 30 years of experience advising companies, Strat Aero said, including working with Milestone Aviation prior to its USD2.0 billion acquisition by General Electric Co.
Peck will remain available to the company on a consulting basis. Non-Executive Director Bob Salluzzo has also stepped down.
"Being the only dedicated listed vehicle targeting the rapidly emerging unmanned aerial vehicle market, Strat Aero is ideally placed to become the first fully integrated global solutions provider, one which covers all aspects of the value chain including the provision of innovative software platforms, hardware and pilot training services," Dunleavy said in a statement.
"I look forward to providing further updates on our progress as we look to develop Strat Aero into a UAV focused solutions provider serving global clients in both the commercial and military sectors, and in the process generate significant value for shareholders," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
AERO.L