Servision PLC Regulatory News (SEV)

12 Apr 2006 15:37

SerVision plc12 April 2006 For immediate release Stock Exchange Announcement 12th April 2006 SerVision Plc ("SerVision" or "the Company") Final Results (unaudited) Twelve months to 31st December 2005 Dear Shareholders, I am pleased to announce the Company's preliminary unaudited results for theyear to 31st December 2005. Turnover for the period was US$1.8 million compared to US$1.0 Million for theprevious year. Trading for the first quarter of 2006 has demonstrated furthergrowth, with first quarter sales exceeding US$740,000 compared to US$ 406,000for the first quarter of 2005. During the year your Company successfully completed the development of its SVGseries products and made further strides in the development of its IVG and TVGseries products. During the last quarter of 2005, the first commercial installations of the IVGproduct were successfully made on some cash distribution vehicles in the UK.Other sales of the IVG product were achieved in continental Europe, where yourCompany sees considerable further growth potential. The IVG product won severalawards in security trade-shows during 2005 and the management of SerVisionbelieves that the IVG product is widely perceived in the security market as abest-of-breed product. The official launch and first successful installations of the new TVG seriesproducts (the HVG 200) during the first quarter of 2006, have also createdinterest among communications and security equipment distributors. Your Companyis currently cooperating with a large cellular provider in Israel fordistribution of the HVG product through its distributions channels. The Company is currently negotiating the signing of a number of majordistribution agreements for its SVG, IVG and HVG products. SerVision is gratified to note that its products were exhibited by three majorUS distributors at the recent ISC West security trade show in Las Vegas and wehave further learned that at the coming IFSEC show in the UK in May 2006, ourproducts will be demonstrated by GE Security. Your Board believes that SerVision has made steady progress towards achievingits goals and is now well poised going forward. On a personal note, I wouldlike to thank all of our dedicated staff for their loyalty and hard work overthe last year. Gidon Tahan Chairman and Chief Executive Officer Consolidated Balance Sheet at 31st December 2005 (Unaudited) (Expressed in US Dollar) As of December 31, 2005 2004 Unaudited Audited Note US$ in thousands Non-Current AssetsProperty, plant and equipment 186 189 Current AssetsInventories 604 613Trade and other receivables 2 228 662Cash and cash equivalents 16 2,386 848 3,661 Current Liabilities 3 (1,097) (992) Net (Liabilities) Assets (63) 2,858 Financed by:Share capital 4 412 337 Share premium 5,172 5,172 Merger reserve 1,979 1,979 Accumulated losses (7,626) (4,630) Total (Deficiency) Equity (63) 2,858 Consolidated Income Statement (Unaudited) For the Period From 1st January 2005 to 31st December 2005 (Expressed in US Dollar) For the year ended December 31, 2005 2004 Unaudited Audited Note US$ in thousands Revenue 1,834 1,041 Less: Cost of sales (1,437) (815) Gross Profit 397 226 Administrative expenses (3,254) (2,843) Loss from operations (2,857) (2,617) Finance costs (139) (291) Loss before taxation (2,996) (2,908) Income tax expense -- -- Loss for the year (2,996) (2,908) Attributable to : Equity Shareholders of the parent (2,996) (2,908) Basic loss per share (US Dollar) 5 0.16 0.33 Consolidated Statement Of Changes in (Deficiency) Equity (Unaudited) For the Period From 1st January 2005 to 31st December 2005 (Expressed in US Dollar ) Share Share Merger Retained Capital Premium reserve Loss Total US$ in thousands Balance as of January 1, 2004 231 -- 1,818 (1,722) 327 Issuance of shares 106 5,172 161 -- 5,439 Net loss -- -- -- (2,908) (2,908) Balance as of December 31,2004 337 5,172 1,979 (4,630) 2,858 Issuance of shares 75 -- -- -- 75 Net loss -- -- -- (2,996) (2,996) Balance as of December 31,2005 412 5,172 1,979 (7,626) (63) Consolidated Statement of Cash Flows (Unaudited) For the Period From 1st January 2005 to 31st December 2005 (Expressed in US$ Dollar) For the year ended December 31, 2005 2004 Unaudited Audited US$ in thousands Cash Flow From Operating ActivitiesNet loss (2,996) (2,908) Adjustments for:Depreciation charge 60 40Interest expense 29 192Interest received (39) (13)Decrease/(Increase) in inventories 9 (536)Decrease/(Increase) in trade and other receivables 434 (323)(Decrease)/Increase in trade and other payables (251) 660Net cash used in operating activities (2,754) (2,888) Cash Flow From Investing ActivitiesInterest received 39 13Purchase of fixed assets (58) (118)Proceeds from sale of fixed assets -- 4Net cash used in investing activities (19) (101) Cash Flow From Financing ActivitiesInterest paid (29) (192)Increase in bank borrowings 357 --Repayment of long-term loans -- (180)Proceeds from issue of ordinary shares 75 5,438Proceeds from issue of deferred ordinary shares -- 1Net cash from financing activities 403 5,067 Net (Decrease) Increase in Cash and Cash Equivalent (2,370) 2,078 Cash and Cash Equivalents at beginning of Year 2,386 308 Cash and Cash Equivalents at end of Year 16 2,386 Cash and Cash Equivalents comprise Cash at bank 16 2,386 Notes to the accounts 1. Accounting Policies 1.1 General The preliminary financial statements for the period ended 31st December 2005have been prepared in historical cost basis in accordance with the applicableaccounting standards. The preliminary financial statements are prepared under UKGAAP. 1.2 Reporting currency The majority of the Group's turnover is generated in US Dollars. For thepurpose of reporting requirements, the financial information has been reportedin US Dollars. The year end rate used was £1 to $1.742 1.3 Foreign Currency The results of the parent company are translated into US Dollars at the averagerate of exchange for the year. The assets and liabilities of the parent companyare translated into US Dollars at the rate of exchange ruling at the year end.Currency translation adjustments on exchange are included in the profit and lossaccount. 2. Trade and other receivables As of December 31, 2005 2004 Unaudited Audited US$ in thousandsComposition: Trade accounts receivable 177 304 Grant receivable -- 159 Prepaid expenses 13 16 Other current assets 38 183 228 662 3. Current Liabilities Composition: Short-term credit from banking institutions 424 67 Trade account payable 262 364 Employees and institutions in respect of wages 212 192 Accrued expenses 135 334 Other current Liabilities 65 35 1,097 992 Notes to the accounts 4. Share capital Authorised: The authorised share capital consists of 30,000,000 ordinary shares of £0.01 each and 1,000,000deferred ordinary shares of £0.001 each. As of December 31, 2005 2004 Unaudited AuditedAllotted, called up and fully paid: US$ in thousands 18,357 thousands ordinary shares of £0.01 each 411 336 384 thousands deferred ordinary shares of £0.001 each 1 1 412 337 On September 2005 options over 125 thousands £0.01 ordinary shares to a share holder exercisable at aprice of US$ 0.6 per share. 5. Basic loss per share For the year ended December 31, 2005 2004 Unaudited Audited Loss for the year (2,996) (2,908) Weighted average number of shares (in thousands) 17,887 8,698 Basic loss per share (US dollar) 0.16 0.33 6. Exchange rates The closing rates used in the translation of foreign currency monetary assetsand liabilities are as follows: United Kingdom Sterling 1.00 Israeli Shekels 8.13691United Kingdom Sterling 1.00 United States Dollars 1.74200United States Dollars 1.00 Israeli Shekels 4.66206 -End- Further information: Servision Limited Tel: +972 2 535 0015Gidon TahanChairman and Chief Executive Eitan Yanuv Tel: +972 2 535 0015Finance Director +972 507 244 351 Nabarro Wells & Co. Limited Tel: +44 20 7710 7409David Nabarro This information is provided by RNS The company news service from the London Stock Exchange