RNS Number:2763Z
SerVision plc
29 June 2007
SerVision Plc
("SerVision" or "the Company")
Preliminary Results for the Year Ended 31 December 2006
Highlights:
•Turnover up 94% to US$3.5m (2005: US$1.8m)
•Gross profit up 196% to US$1.3m (2005: US$439k)
•Gross profit margin increased to 37% (2005: 23%)
•Distribution agreements into new geographical markets of France, Brazil
and Mexico and strengthened presence in USA
•Award winning DVR product deployed in Brazilian bus network
Gidon Tahan, Chairman and CEO, commented:
"I am pleased to report that the second half of the year has continued the
strong growth that we experienced in the first half. We have improved our
geographical reach into new markets whilst also strengthening our presence in
existing areas.
"The Board is confident that the coming year will see us enter into new
distribution agreements and thus improve our geographical reach even further and
is optimistic that 2007 will be another year of strong growth for the Company."
Contact details:
Servision plc +972 2535 0015
Eitan Yanuv, Finance Director
HB Corporate 020 7510 8598
Jim McGeever
Threadneedle Communications 020 7936 9605
Graham Herring
Full report and accounts are available on the company website.
Chairman's Statement
I am pleased to announce the Company's audited results for the year to 31
December 2006.
Turnover for the year almost doubled to US$3.5 million compared to US$1.8
Million for the full year 2005. Gross profit increased by 196% to US$1.3 million
(2005: US$439,000) with gross profit margins increased to 37% (2005: 23%). Our
operational loss, excluding exchange rate differences, was $1,991,000 compared
to a like for like operating loss in 2005 of $2,989,000, an improvement of
33.4%.
The new contract wins that we announced recently, combined with our new business
pipeline, provide confidence that we will see further strong growth in 2007. To
date we have processed $2.5 million of orders from our customers. Following our
increased geographical reach into France, Brazil and Mexico, as well as
enhancing our presence in the USA, we will look to broaden our distribution
networks even further afield.
A significant development in the period has been the deployment of our state of
the art, award winning mobile DVR (The IVG series) in 175 buses in Brazil. The
Board is confident that, upon completion of this initial project, we can expect
further major orders for our IVG products.
I am also pleased to announce that our R&D team has managed to develop and
improve our HVG series. This professional cost effective product, will now have
four video channels and will be competitive on price. I am confident that
SerVision will gain penetration into the SME and retail markets and we are
currently considering various routes to market.
SerVision continues to make steady progress towards achieving its goals and we
look forward to the future with confidence. On a personal note, I would like to
thank all of our dedicated staff for their loyalty and hard work throughout the
period that was essential for our significant progress and growth.
Gidon Tahan
Chairman and Chief Executive Officer
28 June 2007
SERVISION PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2006
2006 2005
Notes US$'000 US$'000
TURNOVER 1,2 3,534 1,882
Cost of sales (2,240) (1,443)
------------- -------------
GROSS PROFIT 1,294 439
Research and development expenses (1,581) (1,553)
Selling and marketing expenses (1,060) (837)
Administrative expenses (644) (1,038)
Exchange rate movements (734) 402
------------- -------------
OPERATING LOSS 3 (2,725) (2,587)
Interest payable and similar charges 6 (77) (18)
------------- -------------
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (2,802) (2,605)
Tax on loss on ordinary activities 7 - -
------------- -------------
RETAINED LOSS (2,802) (2,605)
============= =============
LOSS PER SHARE
Basic and diluted 18 (14.32c) (14.55c)
============= ============
All activities arose from continuing activities.
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
2006 2005
US$'000 US$'000
Loss for the financial year (2,802) (2,605)
Exchange rate movements 643 (488)
------------- -------------
Total recognised losses relating to the year (2,159) (3,093)
============= =============
SERVISION PLC
CONSOLIDATED BALANCE SHEET
AT 31 DECEMBER 2006
Notes 2006 2005
US$'000 US$'000
FIXED ASSETS
Tangible assets 9 147 181
------------ ------------
CURRENT ASSETS
Stock 11 323 601
Debtors 12 989 269
Cash at bank 371 231
------------ ------------
1,683 1,101
CREDITORS: amounts falling due within one
year 13 (1,924) (1,446)
------------ ------------
NET CURRENT LIABILITIES (241) (345)
------------ ------------
TOTAL ASSETS LESS CURRENT LIABILITIES (94) (164)
CREDITORS: amounts falling due in more than
one year 14 (279) -
------------ ------------
NET LIABILITIES (373) (164)
============ ============
CAPITAL AND RESERVES
Called up share capital 15 429 339
Share premium account 16 7,101 5,241
Merger reserve 16 1,979 1,979
Profit and loss account 16 (9,882) (7,723)
------------- ----------
EQUITY SHAREHOLDERS' DEFICIT (373) (164)
============= ==========
SERVISION PLC
PARENT COMPANY BALANCE SHEET
AT 31 DECEMBER 2006
Notes 2006 2005
US$'000 US$'000
FIXED ASSETS
Investments 10 231 231
------------ ------------
CURRENT ASSETS
Debtors 12 - 4,255
Cash at bank 17 15
------------ ------------
17 4,270
CREDITORS: amounts falling
due within one year 13 (53) (108)
------------ ------------
NET CURRENT (LIABILITIES)/ASSETS (36) 4,162
------------- -------------
TOTAL ASSETS LESS CURRENT LIABILITIES 195 4,393
============= ==========
CAPITAL AND RESERVES
Called up share capital 15 429 339
Share premium account 16 7,101 5,241
Profit and loss account 16 (7,335) (1,187)
------------ ------------
EQUITY SHAREHOLDERS' FUNDS 195 4,393
============= ============
SERVISION PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2006
2006 2005
US$'000 US$'000
Operating loss (2,725) (2,587)
Depreciation 58 64
(Increase)/decrease in debtors (720) 393
Decrease in stock 278 12
Increase/(decrease) in creditors 506 (117)
-------------- --------------
CASH OUTFLOW FROM OPERATING ACTIVITIES (2,603) (2,235)
RETURN ON INVESTMENT AND SERVICING OF
FINANCE
Interest payable (77) (18)
CAPITAL EXPENDITURE AND FINANCIAL
INVESTMENT
Purchase of fixed assets (24) (56)
-------------- --------------
CASH OUTFLOW BEFORE FINANCING (2,704) (2,309)
FINANCING
Issue of shares in Servision Plc (net of
issue costs) 1,950 71
Net loans undertaken 293 302
------------- --------------
DECREASE IN CASH IN THE YEAR (461) (1,936)
============= ==============
RECONCILIATION OF NET CASH FLOW TO NET DEBT 2006
US$'000
Decrease in cash in the year (461)
Loans undertaken in the year (293)
Exchange differences 643
-------------
Movement in net debt in the year (111)
Net debt at beginning of year (407)
-------------
Net debt at end of year (518)
=============
ANALYSIS OF CHANGES IN NET At 1 January Cash Exchange At 31 December
DEBT 2006 flows differences 2006
US$'000 US$'000 US$'000 US$'000
Cash at bank and in hand 231 (503) 643 371
Bank overdraft (336) 42 - (294)
--------- ---------- --------- ---------
(105) (461) 643 77
Loans (302) (293) - (595)
--------- ---------- --------- ---------
(407) (754) 643 (518)
========= ========== ========= =========
SERVISION PLC
RECONCILIATION OF MOVEMENTS IN GROUP SHAREHOLDERS' DEFICIT
FOR THE YEAR ENDED 31 DECEMBER 2006
2006 2005
US$'000 US$'000
Loss for the year (2,802) (2,605)
Exchange rate differences 643 (488)
New shares issued in Servision Plc
(net of issue costs) 1,950 71
--------------- ---------------
Net movement in shareholders' (deficit)/funds (209) (3,022)
Opening shareholders' (deficit)/funds (164) 2,858
--------------- ---------------
Closing shareholders' deficit (373) (164)
=============== ===============
This information is provided by RNS
The company news service from the London Stock Exchange
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