Adacel expects improved results

Sydney, Nov 15, 2007 (RWE via COMTEX) -- AELTF | charts | news | PowerRating -- (RWE Australian Business News) Adacel Technologies Ltd (ASX:ADA) expected an improvement in the December half, compared with the June half, with a small net profit, and for the full 2008 year to show an improvement over the 2007 result, chairman Mr Julian Beale told the annual meeting in Melbourne today.

"This is dependent on timing of contracts, but should be partly assisted by realisation of the contracts that slipped from the 2007 financial year procurement schedules," he said.

"The company is in a strong financial position and the balance sheet and cash reserves are strong.

"With this in mind, we are undertaking an on-market share buyback as part of our capital management program, which will help increase earnings per share and return on equity and will also result in the return of excess capital to shareholders in an efficient manner."

Mr Beale added, "In the medium term, with the strategies we are implementing and our strong balance sheet, combined with the expected growth in simulator demand, the overall outlook for Adacel continues to be good."

To counter the variability in the flow of orders, Adacel was pushing ahead with its strategy of developing revenue streams from its Air Traffic Control in a Box product, Voice Activated Cockpit technology and simulator support services.

"We will continue to accelerate development of these products through relationships with strong partners, including CAE and Boeing," the chairman said.

rweabn.com.au

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