Sepura Plc (SEPU), the U.K. company that supplies radios to the majority of British police forces, rose for a fourth day to its highest price in four years after U.S. authorities endorsed the Tetra technology used in its devices.
Sepura gained 0.9 percent to 87.5 pence, the highest since July 2008 at the close of London trading. The stock has advanced 83 percent this year, giving the company a market value of 120 million pounds ($194 million).
A U.S. Federal Communications Commission decision last month to expand on a waiver granted for use of terrestrial trunked radio, or Tetra, gives “further certainty” to customers considering the technology, the Cambridge, England- based company said on Sept. 24. Sepura shares have gained almost 15 percent since then.
Sepura named its first Tetra distributor in the U.S. in April after a 12-month trial in Green Bay, Wisconsin. The radio provider increased its share of revenue from countries outside the U.K. to 81 percent last year from 73 percent, according to data compiled by Bloomberg.
The FCC ruling “confirms to potential customers in the U.S. that they can look forward to enjoying the benefits that Tetra communications solutions offer,” Gordon Watling, chief executive officer of Sepura, said in the statement. The company estimates that there are 9 million professional mobile radio users in the U.S.
Sepura already claims market leadership in Europe for digital devices that use Tetra. Its products are used by Danish ambulance drivers and Mumbai Metro staff, and in environments from offshore wind farms to a remote liquefied natural gas facility in Australia.
The FCC said in its ruling that “Tetra is a spectrally efficient digital technology with the potential to provide valuable benefits to land mobile radio users,” according to Sepura. “We are well-positioned to assist customers in their transition.”
In July, the company said it sees continued “resilient” demand from the commercial sector and a “strong pipeline” of opportunities.
Sepura is scheduled to report earnings on Nov. 22.
To contact the reporter on this story: Colm Heatley in Belfast at email@example.com