Rebooted Strat Aero PLC (LON:AERO) is upbeat about its prospects now that the new management has got a grip on the company's costs.
Fixed costs have now been substantially reduced from those prevailing in 2017, and income at Geocurve, its survey & inspection services business, and Gyrometric, where it has a 37% stake, is on an upward trajectory, the company said in its full-year results statement.
WATCH: Strat Aero PLC draws a line under the past and upbeat about its prospects
The group recorded revenues of US$1.01mln during 2017, up from US$862,988 in 2016, generating a gross profit of US$896,548, up from US$593,079 the year before.
Administrative costs in 2017 were reduced from 2016, with the majority of savings made by cutting staff and consultancy costs in non-value-added business areas, Strat Aero said.
Administration expenses were reduced to US$3.52mln from US$4.19mln the year before, contributing to a loss before tax of US$2.94mln, compared to US$3.64mln the year before.
Cash balances at the year-end amounted to US$668,183 (2016: US$3,918). Cash balances in early June were roughly £550,000 (US$730,000).
“Geocurve's focus on, and continued success in, providing survey and inspection services using a diverse range of technologies including UAVs [unmanned aerial vehicles, or drones], as well as ground- and water-based survey equipment, puts it in a strong position entering 2018 as it continues its focus on long-term high value blue chip clients,” the company said.
“Geocurve's differentiated capabilities in the survey industry deliver exactly the analysis that its clients require to maximise the productivity of their teams and minimise asset downtime,” it added.
The board continues to examine opportunities to grow both organically and through the acquisition of complementary businesses and technologies that can enhance growth in shareholder value, said Nigel Burton, non-executive chairman of Strat Aero.
