ASR - Outstanding recovery play.. my tip of the year

SO LETS LOOK AT THE POST RESULTS NEWS

Firstly
Avionic Services plc, the air traffic control systems innovator, announces that
it has won two contracts for the Ministry of Defence and Kerry Airport with a
combined value of over #1.2 million. Together with the recently announced
contract at Bahrain International Airport, the company has now secured
approximately #2.5 million of contracted orders for delivery within the
financial year to 30 June 2004.

The contract for the Ministry of Defence is for the upgrade of an airfield, AGL
and Navaids and is worth some #890,000 to Avionic in revenue over the next ten
months. Work has already begun on the contract.

During the past week the Company also received a letter of contract award for
work at Kerry Airport. The contract is for a turnkey project and includes the
provision of dual frequency localisers, dual frequency glidepath systems and ILS
remote control and monitoring systems. The contract is worth approximately
Euro470,000 (#326,230) to the Company over the remainder of the calendar year. Work
has already begun on the contract.



AND THEN RECENTLY

A Letter of Intent has been received recently by the Company for a contract at
Galway Airport worth some #500,000. The contract is for the supply,
installation, commissioning and flight checking of Airfield Lighting and
Navigational Equipment for Galway. The work is expected to be completed in the
current financial year. Additional contracts worth #160,000 have been won which
will also fall into the current year and include an Airfield Ground Lighting
(AGL) upgrade at Bristol Airport, the refurbishment of an Instrument Landing
System (ILS) at Coventry and the upgrading of approach lighting at Norwich
Airport.

I MAKE THAT 3.1MILLION ALREADY NOW THATS ALREADY DOUBLE LAST YEAR BUT LETS LOOK BACK FURTHER

The year before that they nearly broke even on 3.1 milllion turnover despite disasterous margins.
The year before that EPS was 1.85p on turnover of just over 2 million.

I'm suggesting that with a return to confidence in the airline/airport sectors turnover of 4 million this year, and 6 million next years is achievable, with 2-300k this year and 700k profits next year.

This business has high barriers to entry, and has had significant consolidation lately. Airports will have money to spend on safety, and security.

One of the best penny plays around.....



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