Global car contract lifts Centurion out of the doldrums
In-car DVD player company, Centurion seems to be continuing its fight back from the brink with the announcement of a contract win with an unnamed global car manufacturer.The Welwyn based company saw its shares rise 3.5 per cent to 45p on the news, even without any of the specifics being disclosed.
A short statement from the company said that it had "been awarded an additional contract to supply an integrated in-car entertainment system to a major global automotive manufacturer," adding that "further details will be announced to shareholders in due course."
The contract has been alluded to in previous announcements, and the absence of a value and a failure to name the customer perhaps explains why the company's shares did not see larger gains.
The company was once considered one of the up-coming stars of the AIM market, with founder Steven Cunningham overseeing footsure growth. Centurion has however, seriously faltered since president and CEO, Cunningham's tragic death in a car accident in 2004.
A general decline in performance was capped towards the end of 2005 with its shares being suspended from trading in order for Centurion to renegotiate a £3.6m debt with lender HSBC. The rescue package it eventually managed to put together came at a high price to shareholders, with a £2.5m placing having by Centurion’s own admission, an “extremely dilutive effect.”???