SerVision plc Trading update (7397E)
February 13 2018 - 4:33AM
UK Regulatory
TIDMSEV
RNS Number : 7397E
SerVision plc
13 February 2018
The information contained within this announcement is deemed by
the Group to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014 ("MAR").
13 February 2018
SerVision plc
("SerVision" or the "Company")
Trading update
SerVision plc, the AIM quoted developer and manufacturer of
digital security systems, today provides an update on trading and
the Company's financial position following the conclusion of the
financial year ended 31 December 2017.
Revenues for the year to 31 December 2017 were up strongly on
2016, with the Company experiencing quarter on quarter sales growth
through the year. Trading in the fourth quarter of 2017 showed a
marked improvement on recent years and it is the first time since
2014 that sales in the second half of the year have been higher
than in the first half.
The current order book of the Group currently stands at
US$700,000 plus a signed agreement for an additional US$350,000.
These orders include new business with Cardtronics, a leading ATM
service provider, and Aggregate Industries, a manufacturer and
supplier of heavy construction materials. Going forward, the
Company is working to leverage new and ongoing pilots with Mobileye
distributors in Japan, South Africa, Chile and Argentina, as well
as recent opportunities resulting from a strategic cooperation with
Gurtam, an industry leader in telematics software that has just
completed integration with SerVision's IVG.
Whilst the Company's performance for 2017 has been encouraging,
there is still a long way to go to achieve the sales target of
c$6.5 million that is needed for the Company to trade at
break-even. The cumulative losses of the last three years have been
largely funded by increased borrowings and, as at 31 January 2018,
the Company's net loans from banking institutions and others
amounted to approximately $3.7 million, including Yorkville and CSS
Alpha (BVI) Ltd who, as at the date of this announcement, are owed
a total of US$0.9 million. With no additional debt facilities that
can be used, the Company is required to raise further finance in
the near term or face having to convert some of the existing debt
into equity.
The Company has access to the SEDA facility with Yorkville but
recognises the potential dilutive effect could be significant and
the intention remains that the Company does not utilise the SEDA
facility. Instead, the Company continues to seek new investors who
share its vision of the future. As such the Company is currently in
discussions with a potential new investor who is considering taking
a significant equity stake in the business. Ahead of this investor
completing its due diligence over the next couple of months, it has
also indicated a willingness to lend SerVision between US$0.3
million and US$0.6 million to help the Company relieve some of the
immediate funding pressure.
At this stage no guarantee can be given on the loan being
secured by the Company nor to the terms of such loan funding. Nor
can there be any assurances on any future refinancing of the
Company being successful nor any guarantee, inter alia, on the
quantum, terms, structure or timing of such funding being
forthcoming.
Further updates will be provided by the Company at the
appropriate time.
-ends-
For further information:
SerVision plc +972 2535 0000
Gidon Tahan, Chairman and CEO
Allenby Capital Limited (Nominated +44 (0)20 3328
Adviser and Broker) 5656
Nick Athanas / John Depasquale
Leander PR (Financial PR)
+44 (0)7795 168
Christian Taylor-Wilkinson 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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February 13, 2018 05:33 ET (10:33 GMT)
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