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SCOTTY (SCO).

Investors Chronicle

| January 12, 2007 | COPYRIGHT 2007 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Video telecoms equipment - 1.47p - One of the great dangers small companies face is that good technology can be hampered by operational problems. And so it has proved with Scotty. Its video communications equipment has won fans - and orders - in the defence and healthcare markets. But delays to contracts and supply-chain problems have kept the company trading at a loss.

Last year's big news was a GBP4.6m contract with Germany's Eurocopter to supply communications equipment for the German military's CH53 helicopter fleet. The contract had been expected for some time, but securing it was a lengthy job and delivery was delayed.

The result was that revenues from the contract were pushed from the last financial year into the current one. House broker Hoodless Brennan had originally expected GBP10.5m of turnover and a GBP1.2m loss for the year ending July 2006. The results, reported last week, showed GBP6.4m of turnover and a GBP3.9m loss.

Fortunately, the delay was not serious and Eurocopter has put in further orders worth GBP1.6m. Chief operating officer George ...

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