LONDON (Alliance News) - SerVision PLC Monday said its losses widened in 2013 due to provisions against old debts and a delayed manufacturing agreement in China.
The AIM-quoted developer and manufacturer of digital security systems reported a pretax loss of USD2.8 million in 2013, compared with a USD1.5 million loss in 2012.
SerVision said the increase in losses was primarily due to provisions against old debts totalling USD1.8 million, including a write off of USD1.1 million which resulted from the delayed implementation of its manufacturing agreement in China.
As a result delay to the Chinese contract, revenues for the year were lower at USD3.5 million, compared with USD4.0 million a year earlier.
"Despite the fact that our results for 2013 were below management expectations, I remain cautiously optimistic that the company has indeed rebounded from this slump, and I am confident that we will continue on an upward trend going forward," said Chairman and Chief Executive Gideon Tahan in a statement.
Tahan said that he was confident SerVision's new product line, which will support IP cameras and HD recording, will open up a range of new market opportunities for the group.
SerVision said it is in an advanced stage of an equity fundraising with new investors. The company said it has received GBP625,000 in cash so far from these investors at a price of 5.2 pence per share, though issuance of the new shares awaits signed subscription letters.
SerVision shares were untraded Monday; they were last quoted at 3.31 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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