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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Servision | LSE:SEV | London | Ordinary Share | GB00B0586C20 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.85 | 0.70 | 1.00 | 0.00 | 00:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMSEV
RNS Number : 7651A
SerVision plc
30 September 2015
30 September 2015
SerVision PLC
("SerVision" or the "Company")
Interim Results
For the Six Months Ended 30 June 2015
The Board of SerVision (AIM: SEV), the AIM quoted leading developer and manufacturer of digital security systems, announces its unaudited results for the six months ended 30 June 2015.
For further information:
SerVision plc +972 2535 0000 Gidon Tahan, Chairman and CEO Allenby Capital Limited (Nominated Adviser and Joint Broker) +44 (0)20 3328 5656 Nick Athanas / James Reeve Beaufort Securities Limited (Joint Broker) Jon Levinson / Elliot Hance +44 (0)20 7382 8300 Cadogan Leander (Financial PR) Christian Taylor-Wilkinson +44 (0)7795 168 157 Notes to Editors SerVision is a pioneer in the field of security communications technology and a leading developer and manufacturer of fully integrated video recording and transmission systems for homeland security and transportation applications. The Company's core technology is proprietary video compression which is optimised for streaming real-time video over any type of cellular or narrowband network. REPORT AND FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2015
CHAIRMAN'S STATEMENT
The Board today announces SerVision's consolidated group interim results for the six months ended 30 June 2015. Revenue during this period amounted to a modest $1,242,000 and our net loss was $1,445,000. While on the surface these numbers appear low (relative to last year's revenue of $1,842,000 and net loss of $892,000 for the same period), I can assure investors that the current results are an inevitable outcome of our transition to a new recurring revenue business model. With this new commercial framework in place we are generating less revenue initially, but the Directors anticipate these will lead to more significant revenues of a recurring nature of a recurring nature in the long term. In addition, a number of significant opportunities, particularly in China, were put on hold in H1 as customers have been reluctant to issue further purchase orders until our new IP-based IVG400-N is ready for market. I am pleased to say that we have a healthy pipeline for H2 and I expect better results going forward, as our new IVG is slated for release in the coming weeks and we are poised to start collecting recurring monthly revenue from a number of existing projects and customers.
Sales and Marketing
SerVision's most significant accomplishment over the course of 2015 has been the opening of a UK office in Manchester that is now making direct sales to customers and offering full turn-key solutions for customers, including services and technical support. We have already secured our first project with Gatwick Airport and has been approved as a supplier by the airport. During H1, two major fleet and driver management companies, Matrix and GreenRoad, integrated SerVision's video streaming protocol into their platform, and they initiated a number of UK-based pilots which we believe have strong sales potential. For all of these opportunities and contract wins, SerVision's UK office will be providing stand-alone and integrated systems, installation service, technical support, and cellular data packages that will be paid in monthly installments over a 24 or 36 month period. The UK office has just hired a new support engineer and is currently operating with a staff of five.
During H1, SerVision supplied over seven hundred and fifty MVG400 units, aggregately valued at $915,000, for bus projects in Brazil and Kazakhstan, and it received new orders from cash-in-transit companies in South Africa as well as from Israel's largest bus operator, Egged. Also, during this period, we began pilots for a range of new bus and cash-in-transit fleet projects in Nigeria, Tanzania, and Mexico. We also recently completed the homologation process for SerVision's mobile DVRs in Peru, paving the way for new market penetration in that country. In the United States we have been invited to participate in a pilot for Manhattan City School Buses (where the fleet size is 7,000), and we've recently submitted bids with four local police counties to supply a wearable CCTV solution based on the CVG-M. Earlier this month, after an extensive testing period, the Company learned that it has been short-listed for a project to supply up to 1,000 HVGs for deployment at select US traffic junctions nationwide. We also have a significant opportunity on the horizon for a bus project in the Chinese Municipality of ChongQuing (an existing SerVision customer) but, as mentioned above, the customer has delayed plans to begin this project until the new IVG400-N is available. I anticipate further progress to be made in the Chinese marketplace once the new product has been launched.
Research and Development
Our R&D team's primary focus during H1 (and subsequently) has been to get the new IVG400-N ready for market. The Directors believe that the system's support for IP cameras and High Definition (HD) recording give it a considerable advantage over the current range of mobile DVR solutions on the market (which only support analog cameras and standard definition recording). The IVG has a built-in 3G/4G modem and it supports advanced streaming/transcoding capabilities that are optimised for live transmission over low bit-rate networks. In addition, like the MVG series, it has built-in support for WiFi, GPS, Audio and G-Force, as well as a range of virtual sensors to detect motion, ignition status, geo-fencing violations, speed thresholds and more. A small quantity of IVGs have already been reserved for select customers with high sales potential, and we expect to be able to showcase the IVG400-N during the SEECAT Anti-Terrorism exhibition in Tokyo, Japan in October 2015. The Directors expect that the product will be in mass production shortly thereafter.
While our server team has been busy developing the IVG platform, our software team has been focused on developing a new client software application which will support HD streams and our new optimized H.264 streaming codec. The new client is named "SVCentral," and it will be compatible with the IVG400 as well as the existing range of SerVision products. It will be launched together with the IVG400-N. Another high priority R&D initiative we undertook during H1 entailed adding support for a video streaming platform that enables customers to view live video streams from SerVision DVRs in any web-browser. Prior to this, our SDK was only compatible with Internet Explorer so web client applications developed by third-parties could only access our systems from within this particular browser. With newly added support for the NGNIX platform, video streaming web clients for SerVision products are now possible in Google's Chrome, Mozilla's Firefox and Apple's Safari.
Financials
-- Revenues for this period were $1,242,000 compared to $1,842,000 for the same period in 2014.
-- Operating loss for the period was $1,436,000 compared to an operating loss of $814,000 for the same period in 2014.
-- Net loss for the period was $1,445,000 compared to a loss of $892,000 for the same period in 2014.
In May 2015, the Company announced a subscription to raise GBP911,927 through a subscription for new ordinary shares with existing shareholders and new investors. The net proceeds of the subscription are being utilised to satisfy the Company's existing order book and for general working capital purposes.
Since the period end the Company announced, on 25 September 2015, a placing to raise a further GBP800,000 at a price of 3.5 per share with existing shareholders and new investors. The Placing was arranged by Beaufort Securities as the Company's joint broker.
Conclusion
Although we achieved modest results for H1 2015, I believe that our new recurring revenue business model is the correct long-term strategy for SerVision, and I am currently exploring this commercial model for South Africa where we already have a strong reputation and solid market presence. I am very excited about our new product release and look forward to sharing better results in the future as we grow our market share in the UK, and begin introducing the IVG400-N into global markets.
As always, I am grateful to our shareholders for their confidence and support, and also to the SerVision team for their dedication, commitment and outstanding work.
Gideon Tahan
Chairman and CEO
30 September 2015
SERVISION PLC
CONDENSED GROUP COMPREHENSIVE INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2015
Six months Six months Year to 31 to to 30 June 30 June December 2015 2014 2014 Note $'000 $'000 $'000 Unaudited Unaudited Audited REVENUE 3 1,242 1,842 4,236 Cost of sales (752) (806) (1,843) GROSS PROFIT 490 1,036 2,393 Administrative expenses (1,926) (1,850) (3,058) OPERATING LOSS (1,436) (814) (665) Net finance expense (22) (77) (129) LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (1,458) (891) (794) Tax on loss on ordinary activities 4 13 (1) (1) NET LOSS FOR THE PERIOD (1,445) (892) (795) Translation difference arising from translating into presentation currency (99) (18) 66
(MORE TO FOLLOW) Dow Jones Newswires
September 30, 2015 08:42 ET (12:42 GMT)
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD (1,544) (910) ( 729) Loss per share BASIC 5 (1.75)c (1.61)c (1.16)c DILUTED (1.75)c (1.61)c (1.16)c
CONDENSED GROUP BALANCE SHEET
AT 30 JUNE 2015
As at 30 As at 30 As at 31 June June 2015 2014 December 2014 $'000 $'000 $'000 Unaudited Unaudited Audited ASSETS Non-current assets Intangible assets 4,749 4,605 4,691 Deferred tax asset 96 83 82 Property, plant and equipment 63 77 70 4,908 4,765 4,843 Current assets Inventories 670 585 597 Trade and other receivables 1,341 1,613 1,853 Cash and cash equivalents 24 173 101 2,035 2,371 2,551 Total assets 6,943 7,136 7,394 EQUITY Capital and reserves attributable to the Company's equity shareholders Called up share capital 1,498 984 1,224 Share premium account 14,671 12,639 13,588 Merger reserve 1,979 1,979 1,979 Advance subscription - 1,036 - Other reserve 66 64 66 Retained earnings and translation reserves (14,672) (13,309) (13,128) Total equity 3,542 3,393 3,729 LIABILITIES Current liabilities Short term credit from banking institutions 873 1,144 1,042 Overdrafts -- 63 -- Loan from the office of the chief scientist 161 161 161 Trade and other payables 1,635 1,292 1,721 2,669 2,660 2,924 Non-current liabilities Long term loan from bank institution without current maturity 434 656 443 Loan from Office of the Chief Scientist 11 11 11 Post employment benefits 287 416 287 732 1,083 741 Total liabilities 3,401 3,743 3,665 Total equity and liabilities 6,943 7,136 7,394
CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2015
Share Share Merger Other Retained Translation Capital Premium Reserve Reserve Earnings Reserve Total $'000 $'000 $'000 $'000 $'000 $'000 $'000 Advance subscription $'000 As at 1 January 2014 984 12,639 1,979 62 (12,495) 96 - 3,265 Total recognised expense - - - - (892) (18) - (910) Advance subscription - - - - - - 1,036 1,036 Share option charge - - - 2 - - - 2 At 30 June 2014 984 12,639 1,979 64 (13,387) 78 1,036 3,393 Total recognised expense - - - - 259 84 - 181 Issue of shares 240 949 - - - - (1,036) 153 Share option charge - -- -- 2 - - - 2 As at 31 December 2014 1,224 13,588 1,979 66 (13,290) 162 - 3,729 Issue of shares 274 1,083 - - - - - 1,357 Total recognised expense - - - - (1,445) (99) - (1,544) Share option - - - - - - - - charge At 30 June 2015 1,498 14,671 1,979 66 (14,735) 63 - 3,542
CONDENSED GROUP CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2015
Six months Six months Year to to to 31 30 June 30 June December 2015 2014 2014 $'000 $'000 $'000 Unaudited Unaudited Audited Cash flows from operating activities Loss before taxation (1,458) (891) (794) Adjustments for: Net finance expense 22 77 129 Doubtful debts 462 578 604 Depreciation and amortisation 333 387 1,088 Movement in trade and other receivables 73 (456) (1,402) Movement in tax assets (13) - 1 Movement in inventories (74) (21) (33) Movement in post retirement benefits (1) 4 (125) Movement in trade and other payables (86) (245) 138 Net cash outflow from operating activities (742) (567) (394) Cash flow from investing activities Purchase of property, plant and equipment and intangibles (384) (329) (626)
(MORE TO FOLLOW) Dow Jones Newswires
September 30, 2015 08:42 ET (12:42 GMT)
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