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Thruvision outlines cash return plans as it refocuses its market
People-screening security technology specialist Thruvision updated the market on its plans to return excess cash to shareholders on Monday, which resulted from the sale of its video business to Volpi Capital in October last year.
The AIM-traded firm said it intended to return up to £8m 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 was required, the first step of which would be explained in a circular to shareholders to be issued later on Monday.
Thruvision also updated the market on its trading, explaining that the more focused nature of its activities following the disposal of the video business had driven positive progress since the publication of its interim results in December last year.
The group had already shipped a "record number" of its people-screening units to customers in the current financial year to date, it reported.
That gave management further confidence that there should be a large, international market for its people-screening security technology.
Additionally, based on what the board called the product's "unique capabilities", it had further refined our market focus on four distinct areas - mass transportation, entrance, loss prevention, and customs.
"This market focus, and additional sales resource brought into the group, has resulted in the material pick up in order intake referred to above," the board said in its statement.
"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 was also made in the US with the Transportation Security Administration, 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, the company's new finance director, had now also started, and with the process of separating the video business effectively complete, the group said it expected to head into the new financial year with a clear strategy, strong international sales momentum and net cash materially unchanged since its interim results in December at £17m.