12 March 2018
Thruvision Group plc
("Thruvision" or the "Group")
Trading Update & Return of Capital
Thruvision (AIM: THRU) the specialist provider of people-screening technology to the international security market, is pleased to provide an update on its plans to return excess cash, resulting from the sale of the Video Business to Volpi Capital LLP in October 2017, to shareholders, and on trading progress since publication of the Group's Interim Results in December 2017.
Return of Capital
The Board intends to return up to £8 million to shareholders through a tender offer, possibly combined with an on-market share buy-back programme. In order to effect the return, some capital restructuring of the Group is required, the first step of which is explained fully in the Circular to shareholders to be issued later today and entitled "Proposed cancellation of Share Premium Account and Capital Redemption Reserve and Notice of General Meeting".
Trading Update
The much more focused nature of the Group's activities following the disposal of the Video Business has driven positive progress since the publication of the Group's interim results in December 2017. The Group has already shipped a record number of its people-screening units to customers in the current financial year to date. This gives further confidence that there should be a large, international market for our people-screening security technology.
In addition, further market engagement has fully validated Thruvision's significant advantages over other types of people-screening technology. In particular:
· Thruvision provides instant, real-time video showing the size, shape and location of concealed threats at distances up to 8m;
· Thruvision has a lower cost of ownership than alternative technologies;
· Thruvision does not generate anatomical details of persons screened thereby eliminating privacy issues raised by some other technologies;
· Thruvision is effective at high-throughput levels, screening over 2,000 people per hour in recent operational trials; and
· Thruvision is a passive technology and emits no ionizing radiation.
Based on these unique capabilities, we have further refined our market focus on four distinct areas:
· Mass Transit - screening for suicide vests and other threats in railways, subways and airport concourses.
· Entrance - screening for all types of weapon at entrances to buildings, sports stadia and other public venues.
· Loss Prevention - screening for items stolen from warehouses or factories.
· Customs - screening for prohibited items at borders.
This market focus, and additional sales resource brought into the Group, has resulted in the material pick up in order intake referred to above. Recent highlights include significant orders from the Philippines for mass transit screening and from China for entrance screening, a further order from Saudi Arabia for entrance screening, and several orders from new UK-based loss prevention customers.
Significant progress has also been made in the US with the Transportation Security Administration ('TSA'), following the funded development of a new product for them, the Thruvision "TAC". In late February and early March, the Thruvision TAC, has been publicly demonstrated by TSA with Amtrak in Penn Station, New York, and with LA Metro in Los Angeles, with widespread media coverage. Operational feedback has been positive and David Pekoske, the TSA Administrator, described the trial of stand-off detection technology at Penn Station as "very promising". We are in the process of initiating production of this new product with our US-based partner in anticipation of TSA's final product approval over the summer.
Ian Lindsay, our new Finance Director has now started, and with the process of separating the Video Business effectively complete, the Group expects to head into the new financial year with a clear strategy, strong international sales momentum and net cash materially unchanged since our Interim Results in December at c£17m.
For further information please contact:
Thruvision Group plc +44 (0)20 3553 5888
Tom Black, Executive Chairman
Colin Evans, Managing Director
Investec Bank plc +44 (0)20 7597 5970
Andrew Pinder / Sebastian Lawrence / Patrick Robb
FTI Consulting LLP +44 (0)20 3727 1000
Matt Dixon / Harry Staight
About Thruvision
Thruvision Group plc is a specialist provider of people-screening technology that can detect weapons, explosives and contraband hidden under clothing. Developed with extensive support from the British and US Governments, Thruvision technology is operationally proven and is being used to enhance the security of transport hubs, borders, high profile buildings and public areas.
www.thruvision.com
