Insurance companies wanting video records of an accident are giving a boost to the UK arm of CCTV group Servision (LON:SEV).
The company has lined up new deals with a number of fleet management groups and while not huge in value, they suggest traction is growing for its in-vehicle systems.
Servision said the UK contracts were to provide real-time fleet management, tracking and safety measures.
The largest is with Maple Fleet Services, which is taking 85 systems for training and support over two years.
The order is worth is £73,814 with an additional £5.20 per month per vehicle over the term of the contract.
Stobart Rail, meanwhile, will install Servision’s MVG200 video systems its fleet of road/rail vehicles.
The initial contract is worth £20,000 for 50 systems with additional recurring data billing of £7.50 per month per vehicle.
Elsewhere, Manchester Airport has signed a first contract after eight months of pilot testing.
This will be 12 of the airport's airfield operational vehicles. The group has already supplied systems for 12 vehicles at Gatwick Airport though a change in the specs has delayed this contract being rolled out further.
Other contracts include car leasing firm Up Front Car Holdings, telematics group Verilocation and logistics giant DHL, which has now started to pay £6,000 per month under a monthly data contract.
These contracts follow a deal last year with Greenroad UK, a telematics provider to a number of blue chips including FirstGroup, Bunzl and Marston's.
Last year, Servision moved its model to a recurring revenue basis, which affected sales in the first half of the current year.
The UK office also only opened in Manchester last year and prior to that sales were primarily for bus and cash transfers vehicle operators around the world
Recent bus contracts have been in Brazil and Kazakhstan as well as from Israel's largest bus operator, Egged.
Also, during this period, we began pilots for a range of new bus and cash-in-transit fleet projects in Nigeria, Tanzania, and Mexico.
GIDON TAHAN CHIEF EXECUTIVE
On the potential …
Transportation markets are undergoing a revolution. Israel, for example, requires all business now have video systems. Other countries are following suit.
On progress …
“The market wasn’t ready for us two to three years ago, but now it is. Buses were first but now taxis and even trucks require video.
On Servision’s opportunity …
“It is huge for us. We are one of the best solutions on the market and the new recurring revenue model means we are build relationships with substantial operators such as DHL and Gatwick Airport.
On the UK …
“The UK is leading the way on insurance driven vehicle video, tracking and security systems.”
On recurring revenues …
“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.”
ABOUT THE COMPANY
Servision’s products are already being used by G4S, Brinks, Loomis and the Royal Mail in their respective cash handling operations.
In Israel its devices are installed on buses and it is understood there is to be a trial in the UK with FirstGroup, one of the nation’s largest transport companies.
However, the applications are endless: Servision's video recording and transmission systems could be used by grocery delivery firms to combat shrinkage (a euphemism for stealing), or for security purposes when carrying high value cargoes such as tobacco.
The portability of CCTV systems has been limited, not by a device’s size, but by the ability to transmit over cellular networks using mobile phones.
Digital video streams typically require extensive bandwidth provided by office LANs (local area networks) or home broadband connections.
So, one of the key challenges Servision was faced with was how to transmit high-quality video over all types of Internet protocol (IP) networks.
It has done this by developing advanced video handling technologies that use compression techniques to make it possible to transmit very high-quality video recordings over narrow bandwidths.
As a result, video gateways can stream smooth video over cellular network links, so remote users can view live feeds in real-time via their PC, laptop or smart phone.
THE SHARE PRICE
Shares have been on a bit of a rollercoaster over the past year, with a big spike in the autumn of last year as it signed the deal with Greenroad.
On today’s news the price rose 10% to 2.48p, valuing the company at a little over £3mln