SerVision plc UK Business Update (6976S)
March 21 2016 - 3:01AM
UK Regulatory
TIDMSEV
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 GBP73,814 and the Company will receive an additional
GBP5.20 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 GBP7.50 per month per vehicle
and a purchase order of GBP20,000 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 GBP1 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 GBP21,900 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 GBP20,000 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 GBP19 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 GBP19,980 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
GBP116,000 for the work to date. The monthly data contract has also
commenced, with GBP6,000 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 GBP27,865.
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 +44 (0)20 3328
Adviser and Joint Broker) 5656
Nick Athanas / James Reeve
Beaufort Securities Limited (Joint
Broker)
+44 (0)20 7382
Elliot Hance 8300
Cadogan Leander (Financial PR)
+44 (0)7795 168
Christian Taylor-Wilkinson 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
END
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