People got in to early on this one, but now is the time to buy and at a cheap price too 1.75p, read the RNS

* Eurocopter flight trials successfully completed
* Additional German & US military purchases
* Additional working capital secured

SCOTTY Group plc, announces today that Eurocopter Deutschland ("Eurocopter"),
part of the European Aeronautic Defence and Space Company ("EADS"), has
confirmed that the official flight trials of its military helicopters which
contain SCOTTY's CH 53 SATCOM Mission equipment have passed successfully.

During the trials, the equipment was demonstrated to officials from the German
Army. SCOTTY has received positive feedback from the Ministry officials that
attended and can confirm that the project now enters a new phase in which every
effort is being made to speed up the procurement process necessary to finalise
the project and implement delivery.

In order to fund the additional working capital and costs incurred during the 6
week delay to the flight trials for the CH 53 programme, SCOTTY has secured a
convertible loan of #400,000 through a new facility provided by Headstart, with
the possibility for another #400,000 above that. SCOTTY's directors believe that
this facility could be repaid within the 60-day term of the loan if the delivery
programme with Eurocopter proceeds as they anticipate.

In addition to the Eurocopter project, SCOTTY expects to receive over #2 million
before the calendar year-end from the implementation and delivery of a number of
orders previously announced.

These also include the delivery of Euro720,000 worth of equipment including SCOTTY
Mobile Systems, SATCOM equipment and Telemedicine units to the German army in
this quarter. In addition, SCOTTY confirms that the US Army has deployed three
disaster co-ordination teams equipped with SCOTTY's video teleconferencing
equipment to the Gulf Coast states, which were affected by Hurricane Katrina.

Chief of Staff for the First U.S. Army, Col. James Hickey said: "Satellite
communications are often critical in a hurricane's aftermath. One of the things
we learned last year with the series of hurricanes that passed through Florida
was the need for satellite communications,"

"This storm will likely take out some key communications nodes, and cell phones
and landlines may not work for some time," he added.

Big ted,

An RNS has been expected for some considerable time!

And desite the deliberately misleading posts above, the POSSIBLE contract is for 48 MILLION Euros, Not 48 billion that is being misquoted above.

News is coming tomorrow morning..

Robert, I don't actually know much about this company and didn't hear any rumours - it was just the Independent article (which did say billion, even if by mistake) that caught my eye so thought I'd ask the messageboard about it.

Just for the record, I quoted it word-for-word and was trying to clarify, not mislead.

Andrew,

And the same misleading post has been posted over and over again across the road!

Guys,

Interesting though all this speculation is, in my humble opinion the 18 million/48 million - and any other large numbers quoted - are for the helicopters themselves. However much cash feeds back to Scotty for their involvement, I'm afraid it's not going to make much difference to the bottom line, as they are only providing a small amount of the componentry for (in this case) just three aircraft. Overall the Eurocopter contract could prove useful to Scotty's bank balance, but I think they'll need to see continued growth in all departments before they really start turning a profit - or before the share price really makes progress. Pity, cos when I bought I thought this was going to be an instant success . . .

PS don't forget that this stock has been considerably diluted by Scotty's fundraising attempts. It's great to hope they'll hit 13p again in a hurry, but that's now going to be a lot more difficult than it used to be, as the co. has gone from 213 million shares in existence at end of 2003 to almost 800 million today. In other words, they'd have to clear a profit of 4 million for EPS 0.5p, and then hit a P/E of 26. How soon are they going to achieve the kind of turnover with which to be able to do this?

AT77
my bad............. when I read your post, I misread it. The mention of rumours was in the article and not from you. Please accept my apologies.

Soul traders,

Nice to see a well reasoned and accurate post.

Some of the price predictions around are ridiculous IMO, and most people don't consider the number of shares in issue before picking their numbers out of thin air.

overvalued even at 1.6p.

Worth 0.5p max.

Andy,

Thanks - I try to be of service :o)

I've just had a closer look at SCO's recent press releases and their final results to 31 July 2005 (which I didn't get a chance to read properly at the time of their release as I was away from home for five weeks around Christmas).

On the plus-side, SCO definitely seems to be making progress with winning customers, and the orders are getting larger too. The downside is still their rate of cash burn and the continuing dilution by issuing new shares to Headstart to raise funds.

It's interesting to see that the current market cap of 13 million more or less reflects the value of net assets on the balance sheet. What's holding the share price back in my view is the (frankly, scary) prospect of Scotty having to issue yet more stock this year to cover another 5 million of losses. That could see another 300 million shares in circulation at today's SP of 1.625p. Improved trading ought to mitigate this somewhat, but there could still be a few years to go before break-even is achieved - and that means further dilution.

My conclusion is that, although the future looks good for the company for as long as Headstart is prepared to carry on investing, I wouldn't expect the SP to be performing any particularly spectacular somersaults for a while. As usual, all IMO/DYOR. I'll be holding on to my modest stake for a while longer, as I think there's enough upside to justify a gradual increase in the SP. I'm 38% down at the moment though.

Don't forget though, that the reason they are racking up such large losses, is because of their spending on r&d, the videophone orders are picking up, if some new contracts come in from eurocopter, this will go a long way to reducing losses, any more products launched (assuming that is what they are spending all their money developing) will increase turnover further... What i am saying is - last years results looked bad through high spending on the satcom equipment for eurocopter, as that figure decreases and orders come in, the profit/loss for current year could change dramatically...

Good point, Big.

I heard the news is being issued tomorrow.. so I bought some more

news is out, more dilution anyone else think the sp going anywhere else but south?
still holding att

Eurocopter steps up power while rivals push for top spot

As uprated AS355 and EC135 are launched at Heli-Expo, Bell unveils new competitors

Eurocopter is upgrading its AS355 and EC135 light twins and stepping up production rates as rival manufacturers make a concerted effort to take over the European companys lead in the civil helicopter market.
EUROCOPTER

Eurocopter is to upgrade its EC135 as new rivals emerge



Eurocopter launched the uprated AS355NP and EC135P2i/T2i at last weeks Helicopter Association International Heli-Expo show in Dallas, Texas. Powered by the Turbomeca 1A1, which has a new high-pressure turbine to increase emergency power, the AS355NP has improved single-engine performance.

Deliveries of the AS355NP will begin in April 2007. The improved helicopter will be more suitable for aerial work applications, Eurocopter says, because the uprated main gearbox, taken from the popular AS350B3 turbine single, raises maximum take-off weight with sling load by 200kg (440lb) to 2,800kg, increasing external payload by 20%.

Maximum take-off weight of the EC135 has been increased by 75kg to 2,910kg, Coupled with reductions in empty weight, this increases the useful load by 80-90kg, equivalent to an extra passenger or 100km (55nm) more range. Hot-and-high performance has also been improved. The upgrade was certificated last month and deliveries begin in September.

Bell Helicopters big announcement at Heli-Expo was the launch of its Model 417 light turbine single, a hot-and-high upgrade of the 417 intended to compete with Eurocopters AS350B3 (Flight International, 27 February6 March). The 417 will fly in April, to be followed in the third quarter by the all-new Model 429 light twin, Bells competitor to the EC135.

The main rotor for the 429 was flown for the first time on 28 February. The rotor features composite blades with lower tip speeds and swept tips for reduced noise. Canadian and US certification of the 429 is set for the second half of 2007, followed within 12 months by European approval.

Certification of the Bell/Agusta Aerospace BA609 civil tiltrotor has been pushed back to the first half of 2010, meanwhile

down again, definitely bought in at the wrong time. in anyones humble opinion do you think these will head north any time soon? would hate to cut my losses and then find it was just the MM's doing a tree shake. new launches and contracts[those mentioned previously] would suggest to me that the shares should go up not down.

It's a patience game, Rob.

And when I see what some of the other stocks tipped on this BB are doing, mine begins to run out . . .

Yep, finally lost it and sold to buy CPNR instead. More risk, more potential reward - just the way I like it.

Rumour in the city is that the huge eurocopter deal is tomorrow.

Time will tell.

keaydian,

There have been so many rumours over the years, so I won't believe it until I can see it.

You wanna believe it.