Shares in Sepura (SEPU) plunged 29 per cent after the digital radio and communications systems group warned that adjusted cash profit missed expectations for the year to 31 March. Management predicts adjusted earnings will be between €16m (£13m) and €20m, reflecting disappointing sales of digital mobile radios and applications and a significant number of orders slipping into the current financial year.
IC TIP:
Hold
at
141p
The bright spots were the TETRA device business, €4m in synergies from the recent Teltronic acquisition and the order backlog swelling by more than a fifth in six months to €70m. Management also stood by its adjusted cash profit forecasts for this financial year.
Prior to the warning, broker N+1 Singer expected EPS of 12.5¢ (9.7¢ in FY2015).
