30th Sep 2009 14:38
30 September 2009
SerVision plc
("SerVision" or the "Company")
Unaudited Interim Results for the six months to 30 June 2009
SerVision (AIM:SEV), the AIM listed developer and manufacturer of digital security systems, is pleased to announce its interim results for the six months ended 30 June 2009.
Highlights
Loss before taxation was reduced by 72% to $316,000 for the period (six months to 30 June 2008: $1,113,000)
Commenting on the results Gidon Tahan, Chairman and Chief Executive Officer, said: "I am pleased with our performance given the current global economic climate. There has been a tangible rebound in the mobile surveillance market over the last couple of months and I am confident that our results for the second half of the year will reflect this shift. I am grateful to the employees of SerVision for their hard work and commitment."
Chairman's Statement
I am pleased to announce SerVision's consolidated group financial statements for the six months ending 30 June 2009. Losses before taxes for this period were reduced by 72% when compared with the same period from last year ($316,000 for this period compared with $1,113,000 for the six month period through 30 June 2008). Revenues during this period, however, were below expectations partly due to the ongoing global financial crisis and also because a number of anticipated orders were put on hold until the second half of the year. Having said that, I am confident that our performance will improve in the second half of 2009. Indeed, since June 2009 we have signed a new distribution agreement with a Singaporean-based company, and we have secured a large police project in Bogota, Colombia. I remain optimistic about our current pipeline and we are hopeful that revenues will improve in the second half of the year.
Sales and Marketing
During the period we have widened our distribution network and territorial reach considerably, particularly in the Far East. Earlier this year, we announced major distribution contracts in China and India, and more recently in Singapore, Indonesia, Malaysia and Thailand. We also recently announced that SerVision was awarded a tender by the Colombian police force in Bogota which we expect to sign in the very near future. Since being awarded the tender, I have been informed by our local partner in Bogota that the police are now contemplating increasing the quantity of required MVG 400s from 465 to 665 systems.
Research and development
The Company's research and development team is hard at work on a mobile, light-weight two-channel video transmitter called the CVG-M. This unit is ideal for body-worn applications. Markets all over the world, particularly among police forces and militaries that are already familiar with the MVG 400 for vehicle applications, have responded very favourably to prototypes of this system. Taxi companies have also expressed significant interest in this unit due to its low cost, cellular video transmission capabilities, and its ability to locally capture and store high quality video on the system's flash drive. If internal timetables are met, this new technology is expected to be fully commercialized in the fourth quarter of the current financial year.
In addition, the Company has recently added new functionality to the MVG 400/800 mobile video gateways. In addition to providing live video, GPS and bidirectional audio to meet the transportation market's security needs, these units are now able to broadcast advertising content supplied by local merchants and businesses. MVGs installed on buses, trains, and other forms of public transportation, are now able to generate income from local advertisers. This functionality is in high demand among our partners as it will help them demonstrate that our solution provides ultimate security, and it will pay for itself over a matter of months.
Financials
Loss before taxation was reduced by 72% ($316,000 for this period compared with $1,113,000 for the six month period through 30 June 2008).
Loss per share was reduced by 76% (1.06 cents for this period compared with 4.49 cents for the six month period through 30 June 2008).
Revenues for the period decreased by 11% ($2,113,000 for this period compared with $2,383,000 for the six month period through 30 June 2008).
Gross profits for the period decreased by 17% ($1,014,000 for this period compared with $1,224,000 for the six month period through 30 June 2008).
Conclusion
SerVision remains competitive and is pursuing larger contracts and agreements than in previous years. It maintains a healthy indicative order book for the second half of 2009. I sense that in the last couple of months, confidence is returning to our market and we remain well-positioned to capitalise on new opportunities in the mobile surveillance market.
Again, I am pleased that SerVision's commercial prospects appear to be healthy and strong for the remainder of this year and we continue to be optimistic about the future. I am grateful to our shareholders for their continued support, as well as to our dedicated staff for their invaluable contribution to the success of the company.
Gidon Tahan
Chairman and Chief Executive Officer
30 September 2009
For further information please contact:
|
SerVision plc |
+972 2535 0015 |
|
Eitan Yanuv, Finance Director |
|
|
Allenby Capital Limited |
+44 (0)207 510 8600 |
|
Nick Athanas/James Reeve |
A copy of the interim report will be available on the Company's website- www.servision.net- in accordance with the AIM Rules for Companies.
SERVISION PLC
CONDENSED GROUP INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2009
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Six months to
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Six months to
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Year to 31
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|
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30 June 2009
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30 June 2008
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December 2008
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|
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Note
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$'000
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$'000
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$'000
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|
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|
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Unaudited
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Unaudited
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Audited
|
||
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|
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||||
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TURNOVER
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3
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2,113
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2,383
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4,732
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||||
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Cost of sales
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(1,099)
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(1,159)
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(2,505)
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-------------
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-------------
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-------------
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GROSS PROFIT
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1,014
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1,224
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2,227
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Administrative expenses
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(1,307)
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(2,181)
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(3,084)
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|
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-------------
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-------------
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-------------
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OPERATING LOSS
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(293)
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(957)
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(857)
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Net finance expense
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|
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(23)
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(156)
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(207)
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|||
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--------------
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--------------
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-------------
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LOSS ON ORDINARY
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|
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|||
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ACTIVITIES BEFORE TAXATION
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(316)
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(1,113)
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(1,064)
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|||
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|
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|
|
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|
|||
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Tax on loss on ordinary activities
|
|
4
|
-
|
-
|
-
|
|||
|
|
|
|
-------------
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-------------
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-------------
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RETAINED LOSS
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|
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(316)
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(1,113)
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(1,064)
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|||
|
|
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======
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======
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======
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|||
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||||
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Loss per share
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|
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|
||||
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Basic and diluted
|
5
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(1.06c)
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(4.49c)
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(4.12c)
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||||
|
|
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======
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======
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======
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SERVISION PLC
CONDENSED GROUP BALANCE SHEET
AT 30 JUNE 2009
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|
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As at 30 June
|
As at 30 June
|
As at 31
|
|
|
|
2009
|
2008
|
December 2008
|
|
|
|
$'000
|
$'000
|
$'000
|
|
|
|
Unaudited
|
Unaudited
|
Audited
|
|
ASSETS
|
|
|
|
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Non-current assets
|
|
|
|
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Intangible assets
|
|
3,584
|
3,464
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3,860
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Property, plant and equipment
|
|
58
|
80
|
66
|
|
|
|
-------------
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-------------
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------------
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3,642
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3,544
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3,926
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Current assets
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|
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Inventories
|
|
417
|
629
|
563
|
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Trade and other receivables
|
|
1,335
|
963
|
1,455
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Cash and cash equivalents
|
|
125
|
36
|
136
|
|
|
|
-------------
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-------------
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------------
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|
|
|
1,877
|
1,628
|
2,154
|
|
|
|
-------------
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-------------
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------------
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Total assets
|
|
5,519
|
5,172
|
6,080
|
|
|
|
======
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======
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======
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EQUITY
|
|
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Capital and reserves attributable to the Company's equity shareholders
|
|
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Called up share capital
|
|
556
|
467
|
556
|
|
Share premium account
|
|
9,776
|
8,075
|
9,776
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|
Merger reserve
|
|
1,979
|
1,979
|
1,979
|
|
Retained earnings and translation reserves
|
|
(10,376)
|
(9,744)
|
(10,060)
|
|
|
|
-------------
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-------------
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------------
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Total equity
|
|
1,935
|
777
|
2,251
|
|
|
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-------------
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-------------
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------------
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LIABILITIES
|
|
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Current liabilities
|
|
|
|
|
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Short term credit from banking institutions
|
|
658
|
511
|
558
|
|
Loan from the office of the chief scientist
|
|
109
|
126
|
109
|
|
Trade and other payables
|
|
1,431
|
2,285
|
1,658
|
|
|
|
-------------
|
-------------
|
------------
|
|
|
|
2,198
|
2,922
|
2,325
|
|
|
|
|
|
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Non-current liabilities
|
|
|
|
|
|
Long term loan from bank institution
|
|
360
|
283
|
428
|
|
Loan from Office of the Chief Scientist
|
|
798
|
836
|
882
|
|
Post employment benefits
|
|
228
|
354
|
194
|
|
|
|
-------------
|
-------------
|
------------
|
|
|
|
1,386
|
1,473
|
1,504
|
|
|
|
|
|
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Total liabilities
|
|
3,584
|
4,395
|
3,829
|
|
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--------------
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--------------
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------------
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Total equity and liabilities
|
|
5,519
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5,172
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6,080
|
|
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=======
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=======
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======
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SERVISION PLC
CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2009
|
Share |
Share |
Merger |
Retained |
Translation |
|||
|
Capital |
Premium |
Reserve |
earnings |
reserve |
Total |
||
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
||
|
As at 1 January 2008 |
467 |
8,075 |
1,979 |
(9,153) |
587 |
1,955 |
|
|
Total recognised income and expense |
- |
- |
- |
(1,113) |
(65) |
(1,178) |
|
|
------------- |
------------- |
--------------- |
---------------- |
---------------- |
-------------- |
||
|
As at 30 June 2008 |
467 |
8,075 |
1,979 |
(10,266) |
522 |
777 |
|
|
====== |
====== |
======== |
========= |
========= |
========= |
||
|
As at 31 December 2008 |
556 |
9,776 |
1,979 |
(10,217) |
157 |
2,251 |
|
|
Total recognised income and expense |
- |
- |
- |
(316) |
- |
(316) |
|
|
|
------------- |
------------- |
--------------- |
---------------- |
---------------- |
-------------- |
|
|
At 30 June 2009 |
556 |
9,776 |
1,979 |
(10,533) |
157 |
1,935 |
|
|
====== |
====== |
======== |
========= |
========= |
========= |
SERVISION PLC
CONDENSED GROUP CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2009
|
|
Six months to |
Six months to |
Year to 31 |
|
|
30 June 2009 |
30 June 2008 |
December 2008 |
|
$'000 |
$'000 |
$'000 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
Cash flows from operating activities |
|||
|
Loss before taxation |
(316) |
(1,113) |
(1,064) |
|
Adjustments for: |
|||
|
Net finance expense |
30 |
156 |
207 |
|
Net interest paid |
(30) |
(156) |
(207) |
|
Depreciation and amortisation |
733 |
891 |
1,140 |
|
Loss on disposal of fixed assets |
- |
- |
9 |
|
Movement in trade and other receivables |
341 |
47 |
(305) |
|
Movement in inventories |
146 |
(72) |
(6) |
|
Movement in grant from chief scientist |
- |
30 |
22 |
|
Movement in post retirement benefits |
34 |
98 |
(62) |
|
Movement in trade and other payables |
(227) |
1,281 |
567 |
|
-------------- |
-------------- |
--------------- |
|
|
Net cash inflow/(outflow) from operating activities |
711 |
1,162 |
(301) |
|
Cash flow from investing activities |
|||
|
Purchase of property, plant and equipment and intangibles |
(449) |
(883) |
(1,523) |
|
-------------- |
-------------- |
--------------- |
|
|
Net cash outflow from investing activities |
(449) |
(883) |
(1,523) |
|
Cash flows from financing activities |
|||
|
Issue of shares in Servision Plc |
-- |
- |
1,650 |
|
Net loans (repaid)/received |
(196) |
(565) |
127 |
|
Loan from chief scientist repaid |
(84) |
(37) |
- |
|
-------------- |
-------------- |
--------------- |
|
|
Cash (outflow)/inflow from financing activities |
(280) |
(602) |
1,777 |
|
Cash and cash equivalents at beginning of period |
38 |
(87) |
(87) |
|
Net cash outflow from all activities |
(18) |
(323) |
555 |
|
Non-cash movement arising on foreign currency translation |
(221) |
(65) |
430 |
|
--------------- |
--------------- |
--------------- |
|
|
Cash and cash equivalents at end of period |
(201) |
(475) |
38 |
|
======= |
======= |
====== |
|
|
Cash and cash equivalents comprise |
|||
|
Cash (excluding overdrafts) and cash equivalents |
125 |
36 |
136 |
|
Overdrafts |
(326) |
(511) |
(98) |
|
--------------- |
--------------- |
--------------- |
|
|
(201) |
(475) |
38 |
|
|
======= |
======= |
====== |
SERVISION PLC
NOTES TO THE REPORT AND CONDENSED GROUP FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
|
|
|
|
Turnover by location of customer |
||
|
|
|
|
Six months to |
Six months to |
Year to 31 |
|
|
|
|
30 June 2009 |
30 June 2008 |
December 2008 |
|
$'000 |
$'000 |
$'000 |
|||
|
Unaudited |
Unaudited |
Audited |
|||
|
UK and Continental Europe |
712 |
1,326 |
2,044 |
||
|
North America |
274 |
462 |
833 |
||
|
Latin America |
109 |
310 |
940 |
||
|
Asia and Middle East |
970 |
210 |
744 |
||
|
Africa |
48 |
75 |
171 |
||
|
--------------- |
--------------- |
---------------- |
|||
|
2,113 |
2,383 |
4,732 |
|||
|
======= |
======= |
======== |
|||
Related Shares:
Servision PLC