AIM News: Sarantel clinches major US contract

AIM-listed antenna specialist Sarantel has announced a major US contract said to be worth annual revenues of more than one million dollars (£600,000).

It said the contract, with a supplier of tactical radio systems, would begin to generate revenue early next year.

The announcement accompanied a trading update for the six months to March 31. It said: "As evidence of its progress in the military market and largely as a result of the success of its previous contract programme, Sarantel has been awarded a new major contract by a leading US supplier of tactical radio system."

In February the company announced sales in the first half of this financial year were slower than expected because of technical issues (unrelated to Sarantel's own technology) for two major customers.

Revenues for the first half stood at £1m compared to £1.4m in 2010, while net cash at March 31 2011 was £400,000 and a further £166,000 tax credit received during April. Excluding the two major customers with technical issues, GPS unit sales increased by 3% and revenue by 1%. Military unit sales increased by 52% and revenue by 26%.