(Alliance News) - Tracking system company Starcom PLC said Monday it has terminated its agreement with South African security firm Xplosive Solutions Pty Ltd.
In February, Starcom entered an agreement with Xplosive to supply Kylos units over a three-year period, which would be used for the monitoring of cattle.
Under the agreement, Xplosive would have paid a monthly fee for each Kylos unit, which would go towards the product cost and ongoing software-as-a-service fees. Over the period, Starcom expected to make USD500,000 in revenue.
Although a limited number of goods have been shipped under the agreement, Starcom said it has become apparent to it that Xplosive is either unable or unwilling to continue with the contract for local reasons.
Despite the terminated contract, Starcom still expects trading for 2019 to be in line with current market expectations, and that it will see revenue growth over the year before.
In March, Starcom reported revenue at USD6.0 million for 2018.
Shares in Starcom were down 2.4% at 1.27 pence on Monday.
Star Energy (STAR)