29th Jun 2007 07:03
SerVision plc29 June 2007 SerVision Plc ("SerVision" or "the Company") Preliminary Results for the Year Ended 31 December 2006 Highlights: •Turnover up 94% to US$3.5m (2005: US$1.8m) •Gross profit up 196% to US$1.3m (2005: US$439k) •Gross profit margin increased to 37% (2005: 23%) •Distribution agreements into new geographical markets of France, Brazil and Mexico and strengthened presence in USA •Award winning DVR product deployed in Brazilian bus network Gidon Tahan, Chairman and CEO, commented: "I am pleased to report that the second half of the year has continued thestrong growth that we experienced in the first half. We have improved ourgeographical reach into new markets whilst also strengthening our presence inexisting areas. "The Board is confident that the coming year will see us enter into newdistribution agreements and thus improve our geographical reach even further andis optimistic that 2007 will be another year of strong growth for the Company." Contact details: Servision plc +972 2535 0015Eitan Yanuv, Finance Director HB Corporate 020 7510 8598Jim McGeever Threadneedle Communications 020 7936 9605Graham Herring Full report and accounts are available on the company website. Chairman's Statement I am pleased to announce the Company's audited results for the year to 31December 2006. Turnover for the year almost doubled to US$3.5 million compared to US$1.8Million for the full year 2005. Gross profit increased by 196% to US$1.3 million(2005: US$439,000) with gross profit margins increased to 37% (2005: 23%). Ouroperational loss, excluding exchange rate differences, was $1,991,000 comparedto a like for like operating loss in 2005 of $2,989,000, an improvement of33.4%. The new contract wins that we announced recently, combined with our new businesspipeline, provide confidence that we will see further strong growth in 2007. Todate we have processed $2.5 million of orders from our customers. Following ourincreased geographical reach into France, Brazil and Mexico, as well asenhancing our presence in the USA, we will look to broaden our distributionnetworks even further afield. A significant development in the period has been the deployment of our state ofthe art, award winning mobile DVR (The IVG series) in 175 buses in Brazil. TheBoard is confident that, upon completion of this initial project, we can expectfurther major orders for our IVG products. I am also pleased to announce that our R&D team has managed to develop andimprove our HVG series. This professional cost effective product, will now havefour video channels and will be competitive on price. I am confident thatSerVision will gain penetration into the SME and retail markets and we arecurrently considering various routes to market. SerVision continues to make steady progress towards achieving its goals and welook forward to the future with confidence. On a personal note, I would like tothank all of our dedicated staff for their loyalty and hard work throughout theperiod that was essential for our significant progress and growth. Gidon Tahan Chairman and Chief Executive Officer28 June 2007 SERVISION PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2006 2006 2005 Notes US$'000 US$'000 TURNOVER 1,2 3,534 1,882 Cost of sales (2,240) (1,443) ------------- ------------- GROSS PROFIT 1,294 439 Research and development expenses (1,581) (1,553)Selling and marketing expenses (1,060) (837)Administrative expenses (644) (1,038)Exchange rate movements (734) 402 ------------- -------------OPERATING LOSS 3 (2,725) (2,587) Interest payable and similar charges 6 (77) (18) ------------- -------------LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (2,802) (2,605) Tax on loss on ordinary activities 7 - - ------------- -------------RETAINED LOSS (2,802) (2,605) ============= ============= LOSS PER SHAREBasic and diluted 18 (14.32c) (14.55c) ============= ============ All activities arose from continuing activities. CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES 2006 2005 US$'000 US$'000 Loss for the financial year (2,802) (2,605)Exchange rate movements 643 (488) ------------- -------------Total recognised losses relating to the year (2,159) (3,093) ============= ============= SERVISION PLC CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2006 Notes 2006 2005 US$'000 US$'000 FIXED ASSETSTangible assets 9 147 181 ------------ ------------CURRENT ASSETSStock 11 323 601Debtors 12 989 269Cash at bank 371 231 ------------ ------------ 1,683 1,101CREDITORS: amounts falling due within oneyear 13 (1,924) (1,446) ------------ ------------NET CURRENT LIABILITIES (241) (345) ------------ ------------TOTAL ASSETS LESS CURRENT LIABILITIES (94) (164) CREDITORS: amounts falling due in more thanone year 14 (279) - ------------ ------------NET LIABILITIES (373) (164) ============ ============ CAPITAL AND RESERVES Called up share capital 15 429 339Share premium account 16 7,101 5,241Merger reserve 16 1,979 1,979Profit and loss account 16 (9,882) (7,723) ------------- ----------EQUITY SHAREHOLDERS' DEFICIT (373) (164) ============= ========== SERVISION PLCPARENT COMPANY BALANCE SHEETAT 31 DECEMBER 2006 Notes 2006 2005 US$'000 US$'000FIXED ASSETSInvestments 10 231 231 ------------ ------------ CURRENT ASSETSDebtors 12 - 4,255Cash at bank 17 15 ------------ ------------ 17 4,270CREDITORS: amounts fallingdue within one year 13 (53) (108) ------------ ------------NET CURRENT (LIABILITIES)/ASSETS (36) 4,162 ------------- -------------TOTAL ASSETS LESS CURRENT LIABILITIES 195 4,393 ============= ========== CAPITAL AND RESERVESCalled up share capital 15 429 339Share premium account 16 7,101 5,241Profit and loss account 16 (7,335) (1,187) ------------ ------------EQUITY SHAREHOLDERS' FUNDS 195 4,393 ============= ============ SERVISION PLCCONSOLIDATED CASH FLOW STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2006 2006 2005 US$'000 US$'000 Operating loss (2,725) (2,587)Depreciation 58 64(Increase)/decrease in debtors (720) 393Decrease in stock 278 12Increase/(decrease) in creditors 506 (117) -------------- --------------CASH OUTFLOW FROM OPERATING ACTIVITIES (2,603) (2,235) RETURN ON INVESTMENT AND SERVICING OFFINANCEInterest payable (77) (18) CAPITAL EXPENDITURE AND FINANCIALINVESTMENTPurchase of fixed assets (24) (56) -------------- --------------CASH OUTFLOW BEFORE FINANCING (2,704) (2,309) FINANCINGIssue of shares in Servision Plc (net ofissue costs) 1,950 71Net loans undertaken 293 302 ------------- --------------DECREASE IN CASH IN THE YEAR (461) (1,936) ============= ============== RECONCILIATION OF NET CASH FLOW TO NET DEBT 2006 US$'000 Decrease in cash in the year (461)Loans undertaken in the year (293)Exchange differences 643 -------------Movement in net debt in the year (111) Net debt at beginning of year (407) -------------Net debt at end of year (518) ============= ANALYSIS OF CHANGES IN NET At 1 January Cash Exchange At 31 DecemberDEBT 2006 flows differences 2006 US$'000 US$'000 US$'000 US$'000 Cash at bank and in hand 231 (503) 643 371Bank overdraft (336) 42 - (294) --------- ---------- --------- --------- (105) (461) 643 77Loans (302) (293) - (595) --------- ---------- --------- --------- (407) (754) 643 (518) ========= ========== ========= ========= SERVISION PLCRECONCILIATION OF MOVEMENTS IN GROUP SHAREHOLDERS' DEFICITFOR THE YEAR ENDED 31 DECEMBER 2006 2006 2005 US$'000 US$'000 Loss for the year (2,802) (2,605)Exchange rate differences 643 (488)New shares issued in Servision Plc(net of issue costs) 1,950 71 --------------- ---------------Net movement in shareholders' (deficit)/funds (209) (3,022) Opening shareholders' (deficit)/funds (164) 2,858 --------------- ---------------Closing shareholders' deficit (373) (164) =============== =============== This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Servision PLC