20th Mar 2006 07:30
Servocell Group PLC20 March 2006 20 March 2006 SERVOCELL GROUP ("THE GROUP" or "THE COMPANY") ADMISSION TO AIM KEY POINTS • Servocell Group plc develops innovative, proprietary devices under the Active Latch brand that control the movement or motion of mechanisms, such as locks, with low energy inputs. • Dealings on AIM commence today. • £5.5 million (before expenses) of new money raised via a Placing of 10,185,186 New Ordinary Shares placed at 54p per share. • Active Latch products commercially launched and target the electromechanical sector of the global locks markets, which is valued at $30 billion in annual sales. • The Directors believe that the Group's technology brings a number of competitive advantages to the locks market, which include: • Power consumption which is a fraction of current alternatives and enables: • locks to operate for many years on small batteries or solar cells; • compatibility with network-based power delivery systems and remote networking; • installation without the need for auxiliary power supplies; • locks to be powered by low cost wiring, telephone and network cables or solar cells; and • electromechanical locks to can be retrofitted into existing doors, for example, without the need for further modification. • The Company has established relationships with a range of leading lock manufacturers and expects Active Latch product launches during 2006 and 2007. • The Directors are confident of increasing demand for the Group's products and services for the foreseeable future. • Bell Lawrie is the Group's Nominated Adviser and Broker. Simon Powell, Chief Executive of Servocell, commented, "I am delighted to announce Servocell's admission to AIM. We have a strongmanagement team in place and a real opportunity to accelerate the growth of ourbusiness as we commercialise our Active Latch product range. Significantopportunities exist in our target market and with additional funding to underpinour successes to date we are confident of delivering substantial shareholdervalue." Michael Hartley, Chairman of Servocell, also commented: "I am delighted to be able to play a role in this exciting growth company.Servocell has some remarkable technology which can add significant value to itstargeted market of lock mechanisms. It has market applications worldwide.Servocell is fortunate in having such a high capability and innovativemanagement team." Enquiries: Servocell Group Simon Powell, CEO 01279 621 500 Steven Weaver , CFO Bell Lawrie Ian McInally 0141 221 7733 Jon Fitzpatrick Biddicks Shane Dolan 0207 448 1000 Background information Servocell's Active Latch devices are based around piezo actuators thattraditionally have high cost and limited movement. Through the application ofnovel techniques in design and manufacture, Servocell's products generaterelatively large movements and motion with low energy inputs. Active Latches aredesigned to provide lock manufacturers with a finished module that can be easilyintegrated into their product suite. Servocell's Active Latch products have already been commercially launched andtarget the expanding electromechanical sector of the global locks markets, whichis valued at $30 billion in annual sales. Servocell's current product suite consists of:- * Active Latch 1 (AL1) - released in September 2003; and* Active Latch 2 (AL2) - released in September 2005. A number of international lock manufacturers are in the process of developingActive Latch based products, including the following: The Group's first AL1 customer, Codelocks Limited, launched its Codelocks 5000electromechanical lock, in 2004. Beloxx GmbH, a German cabinet lockmanufacturer, demonstrated their AL1-based 'Active Handle' at the 2005 ASIS showin the US. In January 2006, Jin Kun, a Taiwanese automotive lock manufacturer, which hasdeveloped an electronic motorbike steering lock using Servocell's AL1technology, confirmed that they expect to bring this product to market duringthe course of 2006 and supply the lock to a major motorbike manufacturer. In February 2006, Soha Sun, an access control specialist based in the MiddleEast, confirmed that it will be using Servocell's Active Latch technology aspart of its integral RFID electronic door lock for use in its intelligentbuilding systems and that it intends to have this generally available by the endof 2006. In February 2006, Castell Safety International Limited, a subsidiary of Halmaplc, confirmed that it is working with Servocell in the development of ActiveLatch-based products for safety applications. Since the launch of the AL2 in September 2005, over 25 prototypes have beensold. In January 2006, Burg GmbH, a German lock manufacturer signed adeclaration of intent stating its intention to develop a range of AL2 basedelectronic products for the contract furniture market, with a target launch dateduring the fourth quarter of 2006. In February 2006, one of the largest global manufacturers of locks confirmedthat it was in early discussions with the Group, regarding several applicationsutilising both the AL1 and AL2, and hopes to be able to take at least 1application to market during the course of 2006. The Company has established relationships with a range of leading lockmanufacturers and expects further Active Latch product launches during 2006 and2007, both within existing and new market segments. The Directors believe thatthere will be increasing demand for the Group's products and services for theforeseeable future. The Directors believe that the Group's technology brings a numbers ofcompetitive advantages to the locks market: • power consumption which is a fraction of current alternatives and enables: • locks to operate for many years on small batteries or solar cells; • compatibility with network-based power delivery systems and remote networking; • installation without the need for auxiliary power supplies; • locks to be powered by low cost wiring, telephone and network cables or solar cells; and • compact size and reduced reliance on connection to mains power enables: • easier installation and greater mobility of applications; • electromechanical locks to be retrofitted into existing doors, for example, without the need for further modification; • compatibility with many different forms of access control including, for example, biometrics; and • highly reliable and durable technology, with all Active Latch products engineered and tested to operate for more than 1 million cycles - the actuators which form the core of the devices have been tested to be capable of more than 700 million cycles. The Board and Senior Management: Michael Hartley, Non-Executive Chairman (aged 57) Mike spent 16 years with Coats Viyella plc, the £1 billion turnover,market-leading global thread business, latterly as a main board director. He iscurrently Executive Chairman of Dawson International plc and a non-executivedirector of ITE Group plc. Mike holds a BSc in mathematics from City University and an MBA with distinctionfrom Manchester Business School. Simon Powell, Chief Executive Officer (aged 44) Simon was a founding director of the Group in 1997 and continues to lead thedevelopment of the Active Latch products and applications. Prior to joining theGroup, Simon was technical director of PowerBreaker, where his team invented,patented and successfully brought to market the J and K Series PowerBreaker RCDproduct ranges. Simon has a first class Honours Bachelor of Education degree in design &technology from King Alfred's College, Winchester, is a member of the Instituteof Directors and is a Fellow of the Royal Society of Arts. Steven Weaver ACA, Chief Financial Officer (aged 37) During seven years with Ernst & Young, Steven managed the audits of a number ofmajor blue chip companies. Between 1996 and 2001, Steven worked for theIndustrial Control Services Group plc in the international oil and gas sector,becoming group financial controller working in the corporate head office. Steven joined Servocell in September 2001 as the Group's Finance Director andhas worked closely with Simon Powell in the development of the current businessstrategy. Richard Green, Non-Executive Director (aged 57) Richard was a director of British Industrial Holdings Ltd until taken over byGreenbrook Securities Limited, a part of Greenbrook Industries Limited whichremains wholly controlled by members of the Green family. Richard is a founding director of the Group, and has assisted with thedevelopment of Servocell's relationships with key customers, prospects andsuppliers. Following the Company's Admission to AIM and after his take up under theplacing, Michael G Hartley, Non-Executive Chairman, will have a beneficialinterest in 18,518 Ordinary Shares representing approximately 0.05% of theissued Ordinary Share Capital. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Servelec Group