Companies: SCO   

SCOTTY, the designer of video telecommunications equipment and technology for the government aviation and military markets, has announced the biggest contract in its history.

Chairman Lord Trefgarne has announced the signing of the ‘main’ contract for a key project with Eurocopter, taking the total deal value to €13.3m (£9.1m). Earlier this summer, to the relief of shareholders, SCOTTY announced receipt of an initial £2.5m purchase order relating to the development and certification phase.

The project involves the development and supply of satellite communications equipment for a fleet of forty ‘CH-53 G’ helicopters, which Eurocopter is upgrading to ‘CH-53 GA’ versions for the German military, with the main contract extending to the supply of the initial systems and equipment for the helicopter ‘roll-out’, scheduled to take place between 2009 and 2012.

According to Trefgarne, ‘the contract further cements SCOTTY’s position in the government aviation and military markets, and represents an exciting springboard for continued expansion’. Resources are solely focused on these markets in the wake of the sale of SCOTTY’s ‘telehealth’ operations to management earlier this year.

The news follows a contract win for SCOTTY’s North American operations, which recently secured orders worth $500,000 (£247,000) for satellite communications products for the US military.

Forthcoming results for the year to July will reflect delays to the Eurocopter contract, as well as the goodwill write off and exceptional costs arising from the telehealth disposal. SCOTTY, which reduced interim losses from £2.3m to £913,000 on sales up 49% to £4m, could have recovery appeal.