TIDMTHRU
RNS Number : 5427C
Thruvision Group PLC
12 October 2022
12 October 2022
Thruvision Group plc
(" Thruvision " or the " Group ")
H1 Trading Update
Thruvision (AIM:THRU), the leading provider of "safe distance"
people-screening technology to the international security market ,
is pleased to provide an update on trading for the six months ended
30 September 2022.
R evenues for the period are expected to be GBP2.8 million,
representing growth of 41% versus the comparable period last year
(H1FY22 GBP2.0 million, H2FY22 GBP6.4 million). We currently have
an order backlog for equipment totalling $8.3 million (GBP7.5
million at today's rate of $1.11, see below) and expect most, if
not all, of this to be delivered to revenue during our second half.
Cash as at 30 September 2022 was GBP1.1 million, and has since
grown to stand at GBP3.1 million as at 11 October 2022.
Customs
As announced on 22 September and 5 October 2022, we received two
strategically important orders from US Customs and Border
Protection (CBP), via our US Government contracting partner,
totalling $9.7 million. The first of these orders, totalling $2.7
million, was to complete the process of upgrading CBP's existing
fleet of 60 cameras to our latest 16-channel camera variant. Half
of this first order was delivered in H1 with the balance to be
delivered in H2.
The second order, for $7.0 million, was the first we received
under a new framework purchasing agreement which can, in principle,
allow CBP to place additional orders for a further four years up to
the end of September 2026 . This order further expands the CBP
fleet of Thruvision equipment and is expected to broaden
operational deployments into major US international airports for
the first time. Although anticipated, the order size is larger than
we had expected for FY23.
Our April 2022 trading update stated that CBP had made public
its intentions to acquire significant numbers of additional
"passive body scanners" during 2022 and beyond. This framework
purchasing agreement provides a mechanism through which CBP can
execute this intention. In this context, it is worth noting that in
total, Thruvision received orders worth $14.0 million from CBP in
the US Government's last financial year (1 Oct 2021 to 30 September
2022).
Profit Protection
As we stated in our announcement of 22 September 2022, the
economic situation has become more challenging for retailers since
our April update. This has resulted in our Profit Protection
equipment revenues for H1 being unchanged at GBP1.0 million (H1FY22
GBP1.0 million), despite the strong overall growth as described
above.
Encouragingly, existing Profit Protection customers, who now
fully appreciate the in-year return on their investment from
deploying Thruvision technology, continue to expand and upgrade
their Thruvision fleets. In particular, we are seeing strong
interest in our latest "walkTHRU" lane which we pioneered with Next
PLC, and for which we recently won a retail industry award. The
lane uses two cameras and our AI algorithm to significantly
increase the throughput rate, allowing 100% employee screening,
thereby maximising deterrence and very materially reducing levels
of theft.
Our focus on Third-Party Logistics providers (3PLs) which
operate significant numbers of distribution centres has also
delivered further success. In addition to CEVA, we have added a
second major global 3PL, which is headquartered in Germany. This
customer has placed an initial order for a dual-camera walk-through
lane for a high profile site in the UK and we now expect to sign a
global supply framework agreement with them. We are also discussing
further deployments over the next few months with this
customer.
Almost all retail organisations we speak to are reporting rising
employee theft due, in large part, to the rapidly increasing cost
of living. Therefore, we remain confident that a combination of
existing customers who understand the return on investment and new
retailers / 3PLs, who look to Thruvision's flagship customers, will
allow us to maintain, if not grow, this sector over the course of
this financial year.
Aviation
While the broader aviation market is steadily recovering, we saw
further significant delays in the US Transportation Security
Administration (TSA) accreditation process due to the after effects
of COVID-related disruption. We expect accreditation testing to
recommence this autumn. Such accreditation would enable the use of
our solutions for passenger security screening in US airports.
Modest renewed demand from US airports for employee security
screening is re-emerging.
International
Although we received no orders in the period from Asia or the
Middle East, we have a number of very good opportunities in play.
We are seeing growing interest from a number of international
customs agencies and expect to this to develop over the second half
of the year in what are, inevitably, longer sales cycles.
Outlook
The Group is entering a new phase in its development. With the
strategically significant purchasing framework now in place with
CBP; a material order backlog in place for our second half; and the
balance of opportunities we see across our various end markets, we
expect to deliver strong growth this financial year.
The Board expects that the strong growth we are experiencing
will allow us to achieve our objective of breaking even this
financial year.
For further information please contact:
Thruvision Group plc +44 (0)1235 425400
Tom Black, Executive Chairman
Colin Evans, Chief Executive
Investec Investment Banking (NOMAD & Broker) +44 (0)20 7597 5970
Patrick Robb / James Rudd / Sebastian Lawrence
FTI Consulting LLP +44 (0)20 3727 1000
Matt Dixon / Tom Blundell
About Thruvision
Addressing the urgent need for "safe distance" people security
screening in the COVID era, Thruvision is uniquely capable of
detecting metallic and non-metallic items including weapons,
explosives and contraband items that are hidden under clothing, at
distances between 3 and 10m. Using patented passive terahertz
technology, Thruvision completely removes the need for physical
"pat-downs" and has been vetted and approved by the US
Transportation Security Administration for surface transportation.
Operationally deployed in 20 countries around the world, Thruvision
is used for aviation security, retail supply chain loss prevention,
customs and border control, and public area security. The company
has offices near Oxford, and Washington DC.
www.thruvision.com
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END
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