logo-loader

Servision 2015 results "underwhelming" but sees progress ahead

Published: 07:42 01 Jul 2016 BST

servision
The firm said 2015 results were underwhelming

Video security specialist Servision Plc (LON:SEV) described its results for 2015 as "underwhelming" as it reported a 49% decrease in revenue for the 12 months compared to the same period of 2014.

It blamed the lacklustre performance on its change to the new business model for the UK and delays in the roll-out of technology.

But the group was upbeat for the future and expects to start seeing more sale of its flagship IVG product during the second half of this year, as many of the pilots that began at the end of 2015 and in early 2016 are only now finishing.

"SerVision's new recurring revenue model in the UK is starting to generate a steady income stream for the company, and that we are beginning to receive positive market feedback on some important IVG400-N trials that began in H2 of 2015 and have continued into H1 of 2016," it told the statement.

Last year, the group moved its model to a recurring revenue basis, which affected sales in the first half. 

A UK office also only opened in Manchester in 2015 and before that, sales were mainly for bus and cash transfers vehicle operators  around the world.

SerVision said market penetration in the UK began gaining momentum in the second half of 2015 due to new cooperation with several telematics companies, Gatwick Airport and a new high-value transport project with DHL. 

"However, recurring monthly revenue has only recently accrued in a meaningful way," it added.

Notably, a deal with Sectrans in Brazil, announced in April 2015, failed to deliver further orders and above the 400 MVG400 units announced at that time.

The firm is also working on combining collision avoidance technology with its video device to transform it into a real-time video monitoring platform that enables fleet managers to easily identify problematic driving behavior. 

SerVision has just completed thi9s integration and is preparing to roll this solution out to SerVision and Mobileye customers.

The firm posted a net loss for the year of $2.57mln compared to a loss of $794,000 for the same period in 2014 on revenues, which were 49.1% lower at £2.154mln.

The operating loss for the period widened to $2.41 mln compared to an operating loss of $665,000 for the same peiod of 2014.

Cordiant Digital Infrastructure marks three years of strategic growth and...

Cordiant Digital Infrastructure Ltd (LSE:CORD) Chairman of Digital Infrastructure Steven Marshall and Chief Financial Officer Mark Tiner joined Steve Darling from Proactive to provide some insight on the company’s three-year anniversary since listing on the London Stock Market. The company...

41 minutes ago