The decision to open a UK office last year has proved a smart one for video surveillance specialist SerVision PLC (LON:SEV).
The group revealed in its results for the first half of the year that around half of its revenues are derived from the UK, including a growing number of recurring revenue streams.
Half-year revenues for the whole group rose to US$1.29mln from US$1.24mln the year before.
The loss before tax narrowed to US$1.02mln from US$1.46mln the previous year.
The directors have prepared and reviewed sales forecasts, budgets and cash flow projections for the next twelve months and, having considered these cash flows and the availability of other financing sources, have concluded that the group will remain a going concern for at least twelve months from the date on which these interim financial statements were approved.
“This year's H1 [first half] results include new recurring revenue streams generated from our UK office, which I am confident will continue to grow as more customers subscribe to our solutions and services,” said Gidon Tahan, chairman of SerVision.
“I also expect further growth in the near future as we conclude a number of successful pilots with our new IP-based [internet protocol-based], high definition mobile video gateway, the IVG400-N, and as a result of our recent integration with Mobileye's world renowned advanced collision avoidance technology,” Tahan added.
Trading in the third quarter has been consistent with patterns seen in the first half.
“The directors are cautiously optimistic of an improved result for the year when compared to 2015 and while it will take a little longer for us to realise profits from newly set up business in the UK, our recurring revenue model there is growing regularly. We have a large number of trials ongoing, some of which are of a significant size, and our focus now is to convert these to orders,” Gahan said.