LONDON (Alliance News) - SerVision PLC Tuesday said its pretax loss narrowed in 2014 on the back of its revenue rising from new partnership and distribution agreements and said it expects sales to grow as new products are launched.
The developer and manufacturer of digital security systems reported a USD794,000 pretax loss in 2014, narrowing from the USD2.7 million loss in 2013 as revenue rose to USD4.2 million from USD3.5 million.
A fall in administrative expenses to USD2.5 million from USD3.6 million and a reduction in depreciation and amortisation expense to USD604,000 from USD736,000, alongside a USD138,000 foreign exchange gain in 2014 that was not present in 2013 all also contributed to the narrower loss.
"Our final results for 2014 show a solid rebound from the previous year and when I consider the opportunities in our current pipeline and the prospects for significant penetration of the Chinese and global police market with a body-worn video transmission solution, I am optimistic that we can continue on a growth trajectory," said Chairman and Chief Executive Gideon Tahan.
SerVision said new business in China, Kazakhstan and Brazil in the second half boosted its performance and new distribution and partnership agreements sealed throughout the year helped generate the revenue growth. These include a new distribution agreement in the US and Canada with Live Video USA.
However, that new distribution agreement is currently being delayed due to the ill health of the chief executive of Live Video USA, said the company.
SerVision is also "optimistic" about offering a fully integrated fleet/driver management and video platform after holding discussions with a number of well-established fleet and driver management service providers. The platform could potentially play a "major role" in driving future sales, it said.
The research and development division has also made "significant advancements" in developing its new mobile digital video recorder platform, but admits it is a "little behind schedule". The new platform will have an integrated 3G/4G module and the ability to host third party video content so it can eventually be used as a mobile advertising platform on buses and other public transport vehicles.
"I have expectations that our sales growth will accelerate once our next generation mobile digital video recorder is ready for market launch and our new sales strategy to generate monthly recurring revenue has been fully rolled out," said Tahan.
Servision shares were up 9.1% to 4.50 pence per share on Tuesday afternoon.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
