11 Feb 2011 07:00
11 February 2011 SureTrack Monitoring plc Trading Update
SureTrack Monitoring plc ("SureTrack" or the "Company"), one of the UK's leading asset protection, cash security and crime deterrent companies specialising in covert tracking and recovery, provides an update on trading for the year ended 31 January 2011.
Trading in the year at the revenue level is lower than market expectations and the operating loss is marginally lower than market expectations. The lower revenue for the year is largely due to the slower than expected traction with Ford sales. The Company has however laid the foundations with Ford and the Board continues to believe that this opportunity will make a significant contribution in the short to medium term.
During the past six months the management and sales team has been strengthened and the Company is already seeing early signs that these changes are beginning to bear fruit. The Company's key focus in recent months has been on Ford and as stated in the Chairman's statement that accompanied the half year results the Board is encouraged by the reception the Company's tracking device has received from the Ford dealer network. Of the 106 Ford commercial vehicle backbone dealers 80 have been fully trained and 46 other main and car Ford dealerships have also been fully trained. The training programme continues for the remaining dealerships. Units are slowly starting to be ordered by dealerships, both for their own use in demonstrator vehicles and for new vehicles sales.
The Company has also recently launched its tracking product in South Africa through a distributor, Camo Group (Pty) Limited ("Camo"): this is the first move outside Europe. Camo believes that South Africa could be a large market for the asset protection and recovery service that the MT2 device offers. Camo intends to run its own tracking and recovery service using SureTrack's systems and has already demonstrated the product to major organisations in South Africa. An initial order has been received for a small number of units and we are hopeful that significant orders will be forthcoming in the next 12 months.
The Company continues to receive orders from the Explorer Group, one of Europe's leading caravan manufacturers, as part of its line fit programme for caravans and camper vans.
Following the serious downturn experienced in the construction sector during the last 24 months, which had an adverse impact on the Company's plant hire customers, the Board is encouraged by some early signs that this market is now recovering and customers are returning to use the Company's services, both through the renewal of annual maintenance contracts on units that had previously lapsed and through the sale of a limited number of new units.
The Company is pleased to announce that its product and finding service was involved in the recovery of an item of demolition plant valued at £100,000 in late December 2010 which has served as a reminder to the Company's plant hire customers of the value of having SureTrack units installed on their equipment.
During the financial year to 31 January 2011, the Company is also encouraged by the operational progress made at IBP, its wholly owned subsidiary that specialises in robbery and serious crime solutions. IBP's products have recently assisted in the arrest of thieves following a raid at a convenience store in the UK. IBP also runs a highly acclaimed annual symposium in the UK for the security industry which was well attended by security leaders of many major UK and European operations.
The Company expects to announce its final results for the year ended 31 January 2011 in May 2011.
Will Hirons, CEO of SureTrack Monitoring plc, commented:
"Since moving to AIM in August2010the Company has made major strides by invest ing in the development of the business. The strengthening of the sales team has been a key factor in our progress and I feel that we are now in a position to make significant headway and for SureTrack to become a major supplier tothe security,tracking and asset recovery sector."
For further information contact:
SureTrack Monitoring plc Tel: 01926 863630 Will Hirons, Managing Director Tel: 07850 934204 Simon Barrell Merchant Securities Limited (Nominated Adviser and Broker) Simon Clements / Bidhi Bhoma - Nominated Adviser Tel: 020 7628 2200 Graeme Cull - Corporate Broking Lothbury Financial Services (Financial PR) Tel: 020 7868 2010
Michael Padley/Simon Astley Notes to Editors
SureTrack, is the UK's leading GSM based asset tracking service and has subsidiaries targeting two markets: large moveable physical assets and cash/ valuables movement.
Its latest product, the MT2 is a small self-contained GPRS/ GSM/ RF tracking device used to assist the recovery of lost or stolen assets. GSM based positioning technology is combined with Radio Frequency to create a covert security product. No specialist installation is required so it can be quickly and easily concealed within an asset.
The MT2 represents the leading battery powered asset tracking device. The tracker uses GPRS rather than SMS; a much more efficient power system that lasts up to three years and contacts the control centre much more frequently (every 45 minutes) giving its position. It uses an exclusive and exceptionally accurate triangulation location system.
In March 2009 SureTrack acquired IBP-Group Limited ("IBP"), a company that provides a suite of products that centre on deterring and reducing the incidence of robbery, primarily relating to cash - protecting staff and customers from violent crime.
IBP work closely with major financial institutions, retailers and leading cash-in-transit companies in co-operation with the police to achieve a target reduction in raids and other crimes in hot-spot areas. They are also suppliers to the Police Crime Prevention Initiative Raid-controlâ„¢, focusing on deterring and foiling robberies at independent retailers.
SureTrack's key client areas are the motor, plant hire and construction industries, the farming community, caravan manufacturers and via IBP banks, retailers and cash transit companies.
www.sure-track.co.uk
www.ibp-group.com
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