Estonia, Technology, Telecomunications

Sarantel, which makes antennas used in the SkyCaddie, a device used to show golfers how far away the hole is, and in military applications, said the move is expected to generate savings of about 500,000 pounds a year. Exceptional costs should total about 50,000 pounds, it said.

Chief executive David Wither explained to ShareCast that while the company will continue to operate its factory in Wellingborough, it decided to outsource manufacturing rather than expanding output at its current facility.

The announcement comes on the same day Sarantel revealed that pre-tax losses widened to 1.5 million pounds in the six months to March 31, from 1.3 million pounds over the same period the previous year. Revenues slipped to 1.4 million pounds from 1.7 million pounds.

According to Sarantel, high-value revenues were lower than the previous year due to a boost in orders from satellite phone group Iridium the previous year as it launched a new handset. Revenues from high-value military and satellite data applications continue to increase though, it said. The company also noted that changes in the mobile phone sector were ‘encouraging’ for the company, with more devices incorporating location-based devices.

"The board remains optimistic that market and consumer forces will drive demand for the improved performance that Sarantel's antennas deliver both in the GPS market and in the more near term, the military market," the company said.

"As previously announced, the board expects growth to continue in 2010 with Group revenues for the full year expected to be approximately 3.1 million pounds to 3.3 million pounds," Sarantel representatives notes.