CUC Centurion Ele

RNS Number:5929S
Centurion Electronics PLC
08 March 2007



8 March 2007


                           Centurion Electronics plc
                                 Trading Update


The Board of Centurion wish to update shareholders on the developments within
its business.


Revenue Stream


Whilst we expect to see a significant improvement in Centurion's performance
during the year ending 30 September 2008, the Company's financial performance
for the year 30 September 2007 will be affected by a number of external factors.


Within our largest customer, Toyota Motor Europe, we are witnessing sales of our
existing systems being significantly below our original internal forecasts due
to the phased roll-out of current products and the subsequent introduction of
new upgraded products.


As a result in the year to 30 September 2007, it is unlikely that the Company
will move into profitability.


However, as announced on 6 February 2007, Centurion remains on target with the
launch of the new Premium ICE system, which has been designed and developed by
Centurion, exclusively for Toyota Motor Europe, which is being phased in during
the last two months of the financial year ending 30 September 2007 and is
expected to contribute to the Company's performance in the year ending 30
September 2008.


Additional funding


Agreement has been reached with one of the Company's principal shareholders,
Ravensworth, to advance an additional #1 million to the company to cover the
expected cash shortfall resulting from the reduced level of sales and to fund
some of the expected growth from the new contracts.


The advance is for a period of 5 months and will carry an interest rate of 7.5%
after which, at the option of Ravensworth, it can be converted, into Centurion
shares at the average mid market price over the next 5 months.  In addition, a
three year option will be granted to Ravensworth to subscribe for 2 million new
shares at a price based on the average closing mid market price over the five
business days following the release of this announcement.


New Contracts


The Directors are pleased to report positive developments elsewhere in the
business.  Centurion is in the process of finalising two new Global OEM
contracts, which they expect to be able to announce in full next month.



Strategy


The Directors believe that the level of new business leads resulting from the
decision to focus on the higher value OEM contracts has vindicated the decision
taken in 2006 to move away from the lower value retail business and look forward
to the time when current customer business returns to more historic levels and
revenue starts to flow from the expected new contract wins.


Enquiries

Centurion Electronics plc                                 +44 (0) 1707 386 602

Chris Rhodes Chief Executive


JM Finn & Co. Ltd.                                        +44 (0) 207 628 9688

Clive Carver



Citigate Drewe Rogerson                                   +44 (0) 121 455 8370

Fiona Tooley
Katie Dale






                      This information is provided by RNS
            The company news service from the London Stock Exchange
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