Starcom PLC Strategic Supply and Support Agreement (3938U)
24 October 2017 - 5:00PM
UK Regulatory
TIDMSTAR
RNS Number : 3938U
Starcom PLC
24 October 2017
24 October 2017
Starcom Plc
("Starcom" or the "Company")
New Strategic Kylos Forever Agreement
Starcom (AIM: STAR), which specialises in the development of
wireless solutions for the remote tracking, monitoring and
protection of a variety of assets, is pleased to announce that it
has entered into a three year supply and support agreement with
Xplosive Solutions SA to sell Kylos Forever units for the
protection and tracking of livestock in South Africa and
Australia.
The initial order is for 1,500 units, which may be increased
under the agreement to 15,000 units per year. The total order value
if the agreement is fully implemented would be approximately
US$3.5m over three years. In addition to revenue from sales of
units, Starcom will also provide its online tracking software
system, generating SAS (Software-as-a-Service) revenues of an
average of US$1 per month per unit connected. It is expected that
SAS revenues over the three years will be approximately US$0.8m if
the agreement is fully implemented and all units connected, making
a total contract value of US$4.3m over three years.
Xplosive Solutions is a South African company which, amongst
other things, provides perimeter security solutions, including
CCTV, to farmers in South Africa and Australia. Starcom has been
working with the company for several months to integrate its Kylos
Forever tracking system onto a dedicated cattle collar designed by
Xplosive.
Farmers in South Africa and Australia face different
problems:
-- South Africa - the main concern is cattle theft, which is
significant. Although many farmers use CCTV and perimeter
notifications, in most cases they arrive too late to prevent cattle
from being taken. Kylos will assist farmers in tracking and
retrieving the stolen cattle.
-- Australia - the main concern is cattle location. Many cattle
farmers farm their herds across vast tracts of open farm lands. In
some cases, they can spend days rounding up the herd. Kylos will
assist farmers in expediting this process.
Xplosive Solutions has advised Starcom that all three cattle
farmer associations in South Africa have now tested the Kylos
solution and have approved them for the roles set out above.
Xplosive Solutions has also advised Starcom that it has signed
an agreement with Vodacom SA, the market leading mobile phone
company in South Africa, to distribute the product through its
reseller channels in South Africa and Australia.
Avi Hartmann, CEO of Starcom, commented, "The Board is excited
by this new agreement which should lead to further opportunities in
the protection of livestock in many parts of the world and once
again demonstrates the way in which the technology developed for
our various products can be adapted to suit many needs."
-ends-
This announcement contains inside information.
For further information, please contact:
Starcom Plc
Michael Rosenberg, Chairman 07785 727 595
Avi Hartmann, CEO +972 5430 70103
+972 3619 9901
Northland Capital Partners Limited (Nominated Adviser and Broker) 020 3861 6625
Edward Hutton / David Hignell (Corporate Finance)
John Howes (Sales and Broking)
Peterhouse Corporate Finance (Joint Broker) 020 7469 0930
Lucy Williams / Charles Goodfellow / Eran Zucker
Leander PR (Financial PR) 020 7520 9267
Christian Taylor-Wilkinson 07795 168 15
This information is provided by RNS
The company news service from the London Stock Exchange
END
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