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SerVision plc  -  SEV   

UK Business Update

Released 07:00 21-Mar-2016

RNS Number : 6976S
SerVision plc
21 March 2016
 

21 March 2016

 

SerVision plc

("SerVision" or the "Company")

 

 

Update on UK Business Activity

 

SerVision (AIM: SEV), the AIM quoted developer and manufacturer of digital video security systems, is pleased to today announce an update on its UK operations including details on a number of recently secured and potentially significant new clients for its vehicle-based end-to-end live video systems. The Company's UK operations are led by Gary Higham, the Company's UK Managing Director, who is based out of the Company's office in Manchester.

 

The Company has agreed a new relationship with Maple Fleet Services, a solution-led company, which designs, manufactures and installs safety and security applications for the logistics industry. SerVision will initially supply 85 systems, including training and support over an initial two year period. The first order is for £73,814 and the Company will receive an additional £5.20 per month per vehicle over the term of the contract. Please visit: www.maplefleetservices.co.uk for more information.

 

The Company has entered into an agreement with Stobart Rail, one of the UK's most respected rail infrastructure and engineering businesses, to supply its MVG200 video systems to Stobart Rail's extensive road rail fleet of vehicles. Initially, SerVision will supply and install 50 systems with immediate effect. The contract includes recurring data billing of £7.50 per month per vehicle and a purchase order of £20,000 has been received for the initial phase of the contract. As with many of SerVision's UK contracts, this is insurance driven, with the Company's video systems providing real-time fleet management, tracking and safety measures to reduce the client's insurance costs and commercial risks.

 

Manchester Airport has entered into its first commercial order with the Company, following eight months of pilot testing. Manchester Airport is undergoing a £1 billion restructuring programme this year, which includes the upgrading of safety, compliance and security on its fleet of vehicles. Initially, the Company will install systems into 12 of the airport's airfield operational vehicles and the Company has received a purchase order valued at £21,900 in this regard. SerVision will integrate cameras into the airport's existing and new monitoring systems, when they come on-line.

 

On 7 July 2015 the Company announced that it was chosen by Gatwick Airport to supply its live mobile CCTV systems and monthly data services to enhance, secure and protect the mobile assets of the airfield operations. As previously announced an initial purchase order valued at approximately £20,000 was placed by Gatwick Airport in July 2015 for the installation of MVG400 units in 12 vehicles in the airport's airfield operations. To date no further orders have been placed with Gatwick Airport as Gatwick Airport has changed their specifications of the originally installed system which has delayed the further roll out of the systems across the airport.

 

The Company has signed a new contract with Up Front Car Holdings Limited to supply its MVG200 system for accident incident notification reports for insurance purposes. This contract was won after 3 months of pilot testing against 3 other competitors. Up Front Car Holdings is a finance company which leases vehicles to professional drivers (such as taxi and private hire companies) and which requires each vehicle in its fleet to have real-time monitoring and tracking. Initially, the Company has a committed to 32 systems at £19 per month per vehicle over a 36 month contractual period. The company is constantly increasing its current fleet of cars and every new vehicle contracted out to new customers is expected to have SerVision's video system installed.  Please visit: www.getupfront.co for more information.

 

SerVision UK has been appointed an official approved supplier by Rotherham Metropolitan Borough Council to supply and install its MVG200 and MVG400 systems into the city's licenced taxis. The borough has 1,200 taxis / private hire cars and the current scheme states that for a driver to maintain their taxi licence a video system must be fitted in the vehicle. The Company has received initial orders, but at this stage is unsure how many vehicles in total it will be required to fit out.

 

The Company has entered into a new partnership with Verilocation, a vehicle tracking and telematics company, to integrate SerVision's video systems into the systems of its existing and new client base. The Company has received an order to date of £19,980 for hardware. Verilocation provides its services to large UK based fleets and has a customer base of around 15,000 vehicles. Please visit: http://www.verilocation.com/vehicle-tracking/ for more information.

 

The Company's relationship with DHL, a major global logistics company, is progressing well, with half of the initial installation of 101 vehicles in the UK completed and the Company has invoiced £116,000 for the work to date. The monthly data contract has also commenced, with £6,000 per month of recurring revenue due to SerVision. DHL has now started to  place further orders for the Company's high security specification systems to install into other divisions, due to the success of the initial project.

 

Finally, the Company is pleased to update shareholders that its partnership with Matrix Telematics has seen regular ongoing hardware sales, which to date totals £27,865.

 

Gidon Tahan, Chairman and CEO of SerVision, commented, "The UK is leading the way on insurance driven vehicle video, tracking and security systems and our team, led by our UK Managing Director, Gary Higham, is beginning to deliver exceptional results across the market, from lease hire to rail and traditional logistic fleets. Since the UK office was opened in 2015, we have started to change the whole ethos and business model of SerVision. We have entered into long-term recurring revenue contracts with a number of major UK companies, many of whom we would hope to expand our relationship with over the next few years. We hope to provide a further update on our other business interests in the coming weeks."

 

-ends-

 

SerVision plc

+972 2535 0000

Gidon Tahan, Chairman and CEO

 


Allenby Capital Limited (Nominated Adviser and Joint Broker)

+44 (0)20 3328 5656

Nick Athanas / James Reeve 


 

Beaufort Securities Limited (Joint Broker)


Elliot Hance

+44 (0)20 7382 8300

 

Cadogan Leander (Financial PR)


Christian Taylor-Wilkinson

+44 (0)7795 168 157

 

 

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
 
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UK Business Update - RNS