RNS Number : 2532S
17 November 2011
17 November 2011
("SerVision" or the "Company")
SerVision (AIM: SEV), the AIM listed leading developer and manufacturer of an award winning range of digital security systems, is pleased to provide an update on the Company's current trading.
On 27 September 2011 the Company reported in its interim results revenues of $2.15m for the six months to 30 June 2011. For the four months to 31 October 2011 the Company has recorded unaudited sales in the region of $2.80m and received further purchase orders valued at $1.25m, all of which are due to be fulfilled during the current financial year. This includes a purchase order valued at $450,000 received from a new distribution partner in India, further details of which are provided below.
The Directors remain confident that the Company's revenue and net profit for the full year will be in line with market expectations (after adjusting for the one off positive revaluation of $0.76m reported in the Company's interim results). Further to the announcement made by the Company at the time of its interim results, the Board acknowledges that the Company's out-turn for the year remains dependent on the receipt of a purchase order from one of its distribution partners, which is yet to be received.
New distribution agreements
On 11 November 2011 the Company entered into an exclusive distribution agreement with AGS Transit Technologies Ltd ("AGS") for the supply of SerVision's video gateway products for all ATM monitoring and other banking applications in India, including cash in transit vehicles and branch monitoring solutions (the "AGS Agreement"). AGS will have the exclusive rights for the distribution of these products in India and non-exclusive distribution rights for all other market applications in India.
Under the terms of the AGS Agreement, which is for an initial duration of 2 years, AGS have committed to purchasing a minimum of 1,500 products from SerVision. An initial purchase order for 750 units, valued at $450,000, was received on 11 November 2011. The Directors anticipate that this purchase order will be fulfilled by the Company before the year end.
On 14 November 2011 the Company entered into a separate distribution agreement with MESAN Electronics Industry Trade Inc. ("MESAN") for the exclusive distribution of SerVision's MVG and CVG-M video gateway products for mobile applications in Turkey and non-exclusive distribution rights to all other model gateway products for other market applications (the "MESAN Agreement"). Under the terms of the MESAN Agreement MESAN have committed to purchase a minimum of 1,000 products from SerVision prior to 31 December 2012. An initial order for 109 units, valued at $90,000, has already been received.
The products being supplied to both AGS and MESAN by SerVision fall across its entire range of Video Gateway solutions, including fixed and mobile commercial systems (SVG, UVG and MVG), home security (HVG) and body worn camera systems (CVG and CVG-M).
The Company has also recently been chosen by Lensec USA for the supply of 1,200 MVG units to be used in public buses in Texas. To date 296 units have been supplied, with a further 405 units expected to be delivered by the end of the year. It is anticipated that the remainder will be delivered in early 2012.
For further information:
SerVision plc +972 2535 0015
Eitan Yanuv, Finance Director
Allenby Capital Limited (Nominated Adviser/
Broker) +44 (0)20 3328 5656
Nick Athanas / James Reeve
Leander (Financial PR) +44 (0)7795 168 157
This information is provided by RNS
The company news service from the London Stock Exchange