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Proactiveinvestors United Kingdom Sarantel Group http://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Sarantel Group RSS feed en Thu, 24 May 2012 01:02:47 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Sarantel – smaller high-performance patented antennas ]]> http://www.proactiveinvestors.co.uk/companies/news/42593/sarantel-smaller-high-performance-patented-antennas-42593.html

 

Harry Norman from Proactive Investors talks to David Wither, CEO of Sarantel, listed on the AIM market technology hardware and equipment sector. Stock ticker SLG; share price 0.64 of a penny; market capitalisation 5.3 million pounds sterling; www.sarantel.com.

 

Harry Norman: Please give investors a brief introduction to Sarantel the market the company is addressing and your strategy for growing the business.

 

David Wither: Yes well Sarantel is a high tech manufacturer of a unique and heavily painted antenna technology. This technology addresses a number of markets; but today we are primarily focused on the military market and some industrial markets which use GPS. Our customers tend to be very performance focused but they also would like to have things which are smaller in size.

We have recently announced a number of significant wins in the military market; so our strategy is to continue to reinforce our success in these markets. We are now supplying all the leading military radio manufacturers around the world really with our technology. We want to really reinforce success to expand our market share in that; then also roll out our GPS antennas in two other new markets as well.

 

Harry Norman: On February 8th Sarantel won its largest order ever from a leading military radio manufacturer for Geo Helix GPS antennas. What did this customer find compelling about Geo Helix GPS antennas? What can you tell investors about this company, this order and the impact it will have on Sarantel?

 

David Wither:  Well this particular company is really the leader globally in tactical radio systems so they provide both hand portable radio systems, for militaries really around the world; they have a significant international presence as well although they are US based. But they selected our technology because what they really need is small high performance antenna which works in very difficult environments and works close to soldiers. These are effectively safety critical applications, where you need to know exactly where your soldiers are on the battlefield at any given time. 

So they really selected our technology because we are really the best in the market at this. We believe that this particular order, and it is a multi-year contract that we won with them – will have a very significant and positive impact on Sarantel’s revenues; not only this year but hopefully for many years to come in the future. 

 

Harry Norman: What other applications have Geo Helix GPS antennas been trialled for are in the sales pipeline, or have been ordered?

 

David Wither:  If you look at where Sarantel’s technology is used in general across our customer base, you find a number of common threads that go through those applications. One is we typically have customers that are very focused on performance. Now they typically use our antennas in small devices. Many times these devices aren’t portable or they are installed in areas where you can’t always guarantee the orientation of the antenna. That is a very important thing about our technology and a big differentiator. 

So we really have seen quite a large number of applications for our technology from anywhere from asset tracking to prisoner tracking to – as I said earlier police radios or military radios; so it is quite a broad range of different applications. 

 

Harry Norman: On November 15th NAL Research ordered antennas for its next generation tracking device, the Shout Nano, a hand held global two way satellite communication device, and emergency beacon. Who are NAL Research and what can you tell us about the antenna technology involved; the order and its value?

 

David Wither:  So NAL Research is one of Iridium’s leading value added manufacturing partners. So Iridium is a US based satellite network operator and NAL as I said is one of their leading value added manufacturing partners. NAL has quite a large customer base. They provide the small two way portable devices in to the State Department in the US, the special operating forces. 

So they have actually provided the same devices about the size of a pack of cards with Iridium and ** [0:04:15] to a wide range of different customers. The technology specifically we are providing on this today is the Iridium antenna. So we make a very compact high performance Iridium antenna and it works extremely well on this device. I think we said when we announced the deal on 15th November that the order would be worth approximately a million dollars over the next two to three years. So we are excited about this essentially new and expanding part of our customer base. It is really something outside of our traditional core GPS market. But it is a good new opportunity for us to grow sales of our technology.

 

Harry Norman: What other technologies or applications is Sarantel working on developing, or making sales in David?

 

David Wither:  In a previous example with NAL we talked about this mobile satellite service. NAL – Iridium actually provides what they call a mobile satellite service. So they are a global satellite service provider. We have worked on developing some antennas recently for Global Star, which is one of Iridium’s competitors. So we are excited about seeing our technology expand into those markets. We are also looking for a number of military applications; though again size is critical and performance is critical. So we are now working on developing multi band antennas; we are doing multi frequencies on one single antenna.

So this applies both in the GPS area but also in the future we think in the consumer space there is an interesting opportunity for making multi frequency antennas. We are also developing a GPS and Wi-Fi or Bluetooth antenna combined; we think that will be very attractive to customers in a number of developing markets; potentially even including some high volume consumer markets.

We have been spending a lot of time in Japan recently and we have done some trials in Japan with the major supplier; so we are hoping to supply our technology into specifically cameras initially. But then hopefully beyond that in the future. 

 

Harry Norman: In the first quarter of 2011 Sarantel shipping its technology to 319 customers, including 169 new customers and was tracking 129 active opportunities. What can you tell us about this quarter’s sales pipeline? 

 

David Wither:  I think the interesting thing about what is happening right now with sales is we are starting to see a number of new customers start to creep up our hot customer list. And a few of these applications are things that have been in development for many, many years. You know one of our larger customers is a company in the US that makes a seismic probe. It is a company called AutoSeis. They use our antenna technology in this probe to help synchronise and time some very sensitive circuitry which is used for ultrasonically probing the ground, to determine where you will drill a hole to explore for oil or gas. 

An area that you would never really think about using our technology; but what we are starting to see is the emergence of applications like that. We are starting to see companies that are buying our technology, to supply them to applications where you will put a tracking device on a container, which is used for a major airline in the US. For instance, they are putting tracking devices on all the containers they store your luggage in. So once it comes out of the plane they can find this container on a large airport; maybe in Beijing. So again asset tracking is starting to become a very, very big part of our business. We think that will grow significantly in the future.


Harry Norman: On March 1st Sarantel agreed a 2 million pound secured loan facility with HSBC. Please would you talk us through the terms of this loan; Sarantel’s capital structure and financial situation going forward?

 

David Wither:  So this loan was a secured loan that we were able to negotiate with HSBC on the back of the largest order that we would receive; we talked about that earlier. A very attractive loan for Sarantel it is 3% above libor; so we are paying about 3 ½ % interest on the loan. It is in the interest only loan with a balloon payment at the end of a two year period. So we felt that given the heavily dilutive funding rounds that we have gone through in the past, we were not interested in raising equity at the existing share price; we felt this was in the best interest of our shareholders to take this loan under what are quite favourable terms. It does not provide a significant burden on the company because we only have to service the interest payments before we pay off the balloon loan at the end.

So we think all in all there is a very attractive deal for us. Today we have no other debt in the business and really it has just been a really straight equity financing up to this point so we only have two classes of the shares; but basically the same rights for both classes of shares. And the shares are all listed on the AIM market. So it is a very clean structure; other than this particular loan we have just secured. 


Harry Norman: What can investors expect from Sarantel over the next 12 to 18 months David?

 

David Wither:  Well the important thing about the loan is that we believe that gives us the finance to get the business to profitability. We have announced a whole series of very significant deals last year. These deals are things that we have been working on for many, many years. Now these are just starting to go into production. So this year we expect to see very significant growth in our sales. The plan is to really maintain that momentum going into next fiscal year. So I would expect for the next 12 to 18 months for our investors to see significant revenue growth in the business and sustained profitability. Again we are very happy that we were able to secure finance which did not require us to issue equity at very low prices; which in the past has been quite heavily dilutive for investors. So hopefully our investors will start to see return on their investment after many years of patience with the business and sticking with it.

]]> Thu, 10 May 2012 08:50:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/42593/sarantel-smaller-high-performance-patented-antennas-42593.html <![CDATA[News - Sarantel says recent orders will have material impact on second half revenue ]]> http://www.proactiveinvestors.co.uk/companies/news/41979/sarantel-says-recent-orders-will-have-material-impact-on-second-half-revenue-41979.html

Specialist GPS antenna maker Sarantel Group (LON:SLG) today said that recent orders will have a material impact on second half revenues and beyond.

In a trading update, for the six months to March 31, it revealed first half revenues of £0.9 million (H1 2011: £1 million). And it said it had a cash balance of £0.2 million at the end of the period, though an additional £165,000 tax credit was received this month.

Sarantel says production revenues increase 9 per cent helped by ‘significant’ growth in the military market. But development revenues had decreased at the same time.

Its performance in the military market continues to build momentum, as demonstrated by a ‘substantial’ order from a military radio manufacturer in February this year. This is part of a multi-year deal which, along with other recent orders, is expected to have a material impact on revenues going forward.

Sarantel also added that with the support of a major customer it has secured a £2 million loan from HSBC Bank, which will help revenue growth.

"The military contracts we have secured underscore Sarantel's position as a supplier of leading antenna technology,” said chief executive David Wither.

“With our recently agreed loan in place, and a firm order book of just over £2m compared to £400k this time last year, we look forward to strong growth in revenues for the second half of the financial year."

On AIM Sarantel shares gained around 3.5 per cent following this morning’s update to trade at 0.59p a share.

XCap analyst Tim Freeborn was also buoyed by the statement. And he says Sarantel is on track for much better days.

“The growing order book is the key here,” Freeborn said in a note to clients. 

“This has let Sarantel obtain debt finance from HSBC which means it should reach profitability without having to tap shareholders again.

“Yes, we are the house broker, but we took on the company because we believe the £40m+ it has swallowed is about to start showing a return. Progress in the consumer mass market will send the numbers through the roof.”

]]> Thu, 26 Apr 2012 08:20:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/41979/sarantel-says-recent-orders-will-have-material-impact-on-second-half-revenue-41979.html <![CDATA[RNS press release - Trading update ]]> http://www.proactiveinvestors.co.uk/companies/rns/120426slg0878c/ Thu, 26 Apr 2012 07:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/120426slg0878c/ <![CDATA[Media files - Sarantel – smaller high-performance patented antennas ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/1100/sarantel-smaller-high-performance-patented-antennas-1100.html Mon, 02 Apr 2012 09:11:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/1100/sarantel-smaller-high-performance-patented-antennas-1100.html <![CDATA[RNS press release - Result of AGM ]]> http://www.proactiveinvestors.co.uk/companies/rns/120330slg4568a/ Fri, 30 Mar 2012 11:38:00 +0100 http://www.proactiveinvestors.co.uk/companies/rns/120330slg4568a/ <![CDATA[News - Sarantel on path to healthy profits, says broker ]]> http://www.proactiveinvestors.co.uk/companies/news/40043/sarantel-on-path-to-healthy-profits-says-broker-40043.html  

Antenna technology specialist Sarantel (LON:SLG) will move close to profitability in 2013 as orders build from the military, according to broker Xcap.

The broker has also upgraded its forecast for 2012 from an underlying loss of £1.2 million to a £1 million deficit after the latest full year figures.

Xcap said the numbers were bang in line with its forecast, with the broker also raising its sales forecast by £0.3m to £3.5 million.

Its estimate for the year to September 2013 is for sales to rise to £5.3 million with Sarantel breaking even at the EPS level.

“These figures take no account of potential game-changing orders for consumer electronics appliances,” added Xcap.

“The earliest volume consumer application is likely to be a combined GPS/wifi unit for 35mm cameras. An initial order for, say 1m units, would add £0.9m to sales and £0.3m to profits.” 

Sarantel’s antennas are also accurate to within a metre, making it highly attractive on the battlefield.

Xcap says that in the past military orders have been lumpy and prone to unexpected slippage, but as the company wins more design-ins its revenues are becoming easier to predict.

On 7 February it announced a largest-yet order from a military radio supplier. 

The recent £2m loan facility at only 3% over libor also meaning Sarantel can fund itself to profitability, removing the threat of a further placing.

The broker added that Sarantel has reduced the size and cost of its antennas but a  volume price of $1.40 per unit still gives a 30% gross margin.

“Even without the consumer breakthrough, the company is on a clear path to healthy profits. We suspect our numbers will turn out to be very cautious. Meantime we remain comfortable with the 1.7p price target,” Xcap said.

 

]]> Fri, 09 Mar 2012 13:49:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/40043/sarantel-on-path-to-healthy-profits-says-broker-40043.html <![CDATA[Broker press ]]> Fri, 09 Mar 2012 00:00:00 +0000 <![CDATA[RNS press release - Change of nomad & broker;annual report publication ]]> http://www.proactiveinvestors.co.uk/companies/rns/120307slg8170y/ Wed, 07 Mar 2012 07:00:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/120307slg8170y/ <![CDATA[RNS press release - Holding(s) in Company ]]> http://www.proactiveinvestors.co.uk/companies/rns/120305slg6802y/ Mon, 05 Mar 2012 11:15:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/120305slg6802y/ <![CDATA[RNS press release - Replacement Preliminary Results ]]> http://www.proactiveinvestors.co.uk/companies/rns/120302slg5857y/ Fri, 02 Mar 2012 11:01:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/120302slg5857y/ <![CDATA[News - Sarantel sees growing traction for GPS antenna technology ]]> http://www.proactiveinvestors.co.uk/companies/news/39705/sarantel-sees-growing-traction-for-gps-antenna-technology-39705.html  

Miniature antenna maker Sarantel (LON:SLG) said today sales had picked up in the second half following order delays earlier in the year.

Revenues for the year to September overall dropped from £2.9 million to £2.2 million but Sarantel said the sales fall all occurred in the first half and was due to "very specific customer related issues".

Revenues in the second half rose to £1.2 million from £1 million.

Losses for the year were flat at £3 million, with lower operating profits offset by reduced admin costs.

Sarantel added that despite the problems, its antenna technology continued to build momentum in the military market with a number of major new contracts.

Customer funded product development revenues, an indication of future revenues, increased by 141 per cent.

In February, the group received its largest ever order from a military radio manufacturer, which it said will have a substantial impact on the group's revenues and cashflow for 2012 and beyond.

David Wither, Sarantel’s chief executive, said that the group’s technology has gained significant traction in the military market place and is confident it can maintain the momentum.

“There are also a large number of encouraging new opportunities in the broader GPS market and, having secured the £2m secured loan facility to provide additional working capital with support from a major customer and the group's bank, the outlook for Sarantel's technology remains very positive,” he added.

 

]]> Fri, 02 Mar 2012 07:53:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/39705/sarantel-sees-growing-traction-for-gps-antenna-technology-39705.html <![CDATA[RNS press release - Preliminary Results ]]> http://www.proactiveinvestors.co.uk/companies/rns/120302slg5456y/ Fri, 02 Mar 2012 07:00:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/120302slg5456y/ <![CDATA[News - Sarantel: Finding a sweet-spot in GPS markets ]]> http://www.proactiveinvestors.co.uk/companies/news/39668/sarantel-finding-a-sweet-spot-in-gps-markets-39668.html As smartphones, cameras and GPS become even more important in people’s lives, miniature antenna specialist Sarantel’s moment may be approaching.

]]> Thu, 01 Mar 2012 09:53:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/39668/sarantel-finding-a-sweet-spot-in-gps-markets-39668.html <![CDATA[News - Sarantel secures £2 million loan facility ]]> http://www.proactiveinvestors.co.uk/companies/news/39654/sarantel-secures-2-million-loan-facility-39654.html Miniature antenna maker Sarantel (LON:SLG) has secured a £2 million loan facility, which it says will help the group reach profitability.

The loan has been agreed with HSBC bank, the firm said in a statement.

It is an interest only and is available for two years and can be drawn down in stages, it added. Interest is payable quarterly at the rate of 3 per cent per year over the bank's sterling base rate. 

Chief executive David Wither said: "I believe this facility, along with the successful contract wins we have had in recent months, will give us the headroom we need to take the group forward to profitability."

Last month, the firm revealed it had won its largest order ever, which will have a significant impact on revenues and cash flow this year.

The order is from an unnamed US military radio manufacturer, which will use Sarantel’s GeoHelix GPS antennas across a range of its products.

The company said it was part a multi-year supply contract expected to be delivered over the next 12 months.

]]> Thu, 01 Mar 2012 07:18:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/39654/sarantel-secures-2-million-loan-facility-39654.html <![CDATA[RNS press release - Loan facility secured ]]> http://www.proactiveinvestors.co.uk/companies/rns/120301slg4274y/ Thu, 01 Mar 2012 07:00:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/120301slg4274y/ <![CDATA[News - Sarantel sees significant revenues boost after largest ever order ]]> http://www.proactiveinvestors.co.uk/companies/news/38727/sarantel-sees-significant-revenues-boost-after-largest-ever-order-38727.html Miniature antenna maker Sarantel (LON:SLG) said today it had won its largest order ever, which will have a significant impact on revenues and cash flow this year.

The order is from an unnamed US military radio manufacturer, which will use Sarantel’s GeoHelix GPS antennas across a range of its products.

One use of Sarantel’s GPS antennas is in compact radio systems that are embedded inside a soldier’s body armour.

Sarantel added that the order was part a multi-year supply contract expected to be delivered over the next 12 months.

It is currently considering a number of options for both short and medium term financing, including a commercial loan.

David Wither, chief executive. said: "This is the largest order that we have secured so far and we expect it to have a material impact on our revenues. It is a great endorsement of the importance of our technology to world leading customers."

Broker XCAP said the order was great news for the company and the broker expects eventually to raise its September 2012 sales and operating profit forecasts “materially”.

“Today's order takes Sarantel a long way towards profitability even without any contribution from camera GPS contracts,” it said, while the comments about financing suggest the company believes it can fund itself with bank debt based on the current order book. 

XCAP said if Sarantel does make a breakthrough into consumer products, it may need to riase money to cover the ramp-up, but in that situation the share price “would be far above current levels”.

Today’s order follows on from an award last November from US-based NAL Research Corporation for its second-generation Iridium antenna for a low-power, two-way satellite messaging and personal tracking device. That deal could generate revenues of US$1 million.

]]> Wed, 08 Feb 2012 08:01:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/38727/sarantel-sees-significant-revenues-boost-after-largest-ever-order-38727.html <![CDATA[RNS press release - Supply Agreement ]]> http://www.proactiveinvestors.co.uk/companies/rns/120208slg9759w/ Wed, 08 Feb 2012 07:00:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/120208slg9759w/ <![CDATA[Broker press ]]> Wed, 08 Feb 2012 00:00:00 +0000 <![CDATA[RNS press release - Holding in Company ]]> http://www.proactiveinvestors.co.uk/companies/rns/111116slg1971s/ Wed, 16 Nov 2011 10:24:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/111116slg1971s/ <![CDATA[News - Sarantel Group signs US$1 million deal with NAL Research Corp ]]> http://www.proactiveinvestors.co.uk/companies/news/35609/sarantel-group-signs-us1-million-deal-with-nal-research-corp-35609.html US-based NAL Research Corporation has signed a deal with specialist antenna maker Sarantel Group (LON:SLG) for production orders of its second-generation Iridium antenna.

NAL will use the antenna as a component in its new SHOUT nano TS – a low-power, two-way satellite messaging and personal tracking device. The order is expected to generate in excess of US$1 million in revenue for Sarantel over the next three years.

The nano TS is the third generation of SHOUT products that have been designed to use Sarantel’s Iridium antenna. It adds a vibrant touch screen and incorporates a full QWERTY keyboard, which adapts to portrait or landscape orientation.

The compact, rugged device uses the Iridium satellite communications network’s short burst data service to provide location information, text messaging and emergency e-mail alert notifications.

“NAL Research continues to lead the market in the development of satellite messaging terminals,” said David Wither, Sarantel’s chief executive officer. “The innovative nano TS introduces an interactive touch screen while offering a full set of features, in a high performance, compact rugged design. We are delighted that our relationship with the NAL Research team has continued through multiple generations of their world class hardware.”


 

]]> Tue, 15 Nov 2011 07:31:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/35609/sarantel-group-signs-us1-million-deal-with-nal-research-corp-35609.html