The company's board is confident that, as reported in the preliminary results statement of May 15, 2007, the markets in which Sondex operates remain buoyant and the company has a solid foundation from which to deliver further growth in the coming years.
Cumulative order intake for the current year to date has been over 20% higher than last year with particular strength from China and Russia. Revenue during the first quarter is in line with management expectations.
Investment in Research & Development has increased to £1.7m in the first quarter (£1.4 million in Q1 2006/7), focused on two major projects which are now entering the early field trial stage.
In Canada, Sondex Canada Inc. and Sondex Drilling Tools Inc. (ex Bluestar Tools) have been integrated, combining the manufacturing and engineering facilities. Sondex's Canadian operations now function as a single entity. The Canadian markets have seen recent increases in rig rates indicating a returning strength to this market.
Integration of the product lines from recent acquisitions is on-going. Delivery of drilling systems which incorporate the combination of products from Geolink, Bluestar Tools and Ultima Labs is planned for the second half of the current financial year.
An improvement in debtor levels has been effected since the year end and an initiative to improve stock levels is in process.
There have been no other significant changes in the position of the company over the period since the publication of its report and accounts for the year ended February 28, 2007.
Overall, the board continues to be satisfied with the progress being made by Sondex and the activity levels in its markets.
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