Starcom PLC Business Update (5935W)
December 12 2019 - 1:01AM
UK Regulatory
TIDMSTAR
RNS Number : 5935W
Starcom PLC
12 December 2019
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR")
12 December 2019
Starcom plc
("Starcom" or the "Company")
Business Update
Starcom (AIM: STAR), which specialises in the development of
wireless solutions for the remote tracking, monitoring and
protection of a variety of assets, is pleased to provide an update
regarding the progress made in recent months.
Good progress has been achieved across all fronts, cementing a
strong foundation for sustainable future growth. The Company has
employed a strategy of focusing on the higher end of the market,
utilising its technological strength to address more sophisticated
and technically demanding customer needs, where there is less
competition and margins are higher.
The Company has received a new order from an existing customer
in the Ukraine for US$1.3 million of Helios units over a three-year
period. An initial down-payment of US$200,000 has been received
against the first instalment of US$435,000 payable by the customer.
The order is for a new advanced Helios unit, with Bluetooth and
CANBUS connection, which provides direct connectivity with a
vehicle's computer to analyse a variety of vehicle and driver
behaviour data. The additional Bluetooth module makes the Helios
the central hub of the vehicle's IoT platform, with the possibility
to communicate with other Bluetooth supported devices and sensors.
This advanced Helios unit is expected to be operational by the end
of Q1 2020.
The collaboration with Zero Motorcycles Inc. ("Zero") is ongoing
and continues to demonstrate Starcom's technological advantage.
Zero has stated that it expects an increase in sales of the
electric motorcycles in 2020. Starcom's Helios technology is
integrated within the Zero motorcycles to provide performance data
to the rider as well as Zero, and to allow the manufacturer to
deliver software upgrades remotely at the correct time.
The Company continues the successful implementation of its
long-term contract with Israel Chemicals Ltd ("ICL"), a NYSE listed
Israeli conglomerate and a global manufacturer of products based on
unique minerals for the agriculture, food and engineered materials
industries. ICL utilises Starcom's Kylos Forever technology to
track and monitor its sensitive cargo as it is shipped in tanks
around the world.
As previously announced, the board is pleased that Swiss
International Airlines Ltd has given direct approval for the use of
Kylos Air, supplied through Bosch Connected Devices and Solutions
GMBH under its own brand, on its flights.
The Lokies were launched in April 2019 and the first product
batch has been well received by customers. Lokies is a
revolutionary Internet of Things (IoT) based padlock which can be
operated remotely and does not require a key. The Company is
running several 'proof of concept' schemes with customers globally
which it is hoped will lead to sales. So far, 500 units have been
delivered to a Russian client which have been successfully tested.
The Company remains in discussions with this client in respect of
potential further orders of Lokies units.
As reported earlier in the year, WIMC Solutions Inc. ("WIMC"), a
US-based provider of real-time monitoring services for
international shipping containers, placed a large order with the
Company for its Tetis shipping container tracking device. The
relationship between the two companies has become stronger over the
course of this year and WIMC has recently confirmed that Tetis has
been approved by the Paraguayan Department of Customs and Duty.
Finally, due to the increased device connections across the
product range, the higher margin recurring revenues from its
Software as a Service ("SaaS") are expected to continue to
grow.
Avi Hartmann, CEO of Starcom, commented, "We are pleased that
the initiatives taken during 2019 are beginning to show positive
results and we are creating a firm base from which we expect to
further expand the business during 2020 and beyond."
-ends-
For further information please contact:
Starcom Plc
Michael Rosenberg, Chairman 07785 727595
Avi Hartmann, CEO +972 5477 35663
Allenby Capital Limited (Nominated Adviser
and Joint Broker)
James Reeve/Jeremy Porter/Asha Chotai 020 3328 5656
Peterhouse Capital Limited (Joint Broker)
Lucy Williams/Charles Goodfellow/Eran Zucker 020 7469 0930
Leander PR (Financial PR)
Christian Taylor-Wilkinson 07795 168 157
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END
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