RNS Number : 0472B
BlueStar SecuTech, Inc.
20 October 2009
Date: 20 October 2009
On behalf of: BlueStar SecuTech Inc. ('BlueStar' or 'the Company')
BlueStar SecuTech Inc.
Trading Update
BlueStar SecuTech Inc. (AIM: BSST), a leading provider of digital video surveillance solutions in China, is pleased to provide an update on trading for the half year ended 30 September 2009.
During the period BlueStar continued to win new contracts which, to date, total over RMB 95 million (£8.7 million). Of this, RMB 80 million will be recognised as revenue by the Company within the current financial year.
The contract wins are with existing customers (such as the Bank of China with whom the Company signed a contract worth RMB 42 million in May 2009) and new customers (such as the Langfang Rural Credit Cooperatives in the Heibei Province of China, which the Company signed a contract worth RMB 3.6 million in September) which opens up new markets to the Company and also demonstrates BlueStar's continuing growth in market share.
These contract wins and BlueStar's strong pipeline of potential new business with existing and new customers are despite the well documented economic slowdown in China and demonstrate the unparalleled position BlueStar holds in the banking sector in Beijing and other Chinese provinces.
Revenue for the six months ended 30 September 2009 is expected to be approximately RMB 67 million, with Net Profit of RMB 6.7 million and cash balances at 30 September 2009 of approximately RMB 50 million.
Although these figures are behind comparatives for the same period last year, the realisation of new business revenue during the coming months, especially in December, and expected contract wins, mean that the Company is confident of achieving its revenue and profit targets for the year to 31 March 2010 and of its growth opportunities going forward.
The Company continues to support its growth through investment in R&D, technical innovation and by increasing staff numbers where required, whilst also ensuring tight credit control and cost management.
The surveillance command centre BlueStar established in Beijing in February 2009 with Kaiyuan Company is now fully operational. To date, 94 financial outlets have begun using the centre's services, generating monthly recurring service fees for BlueStar of RMB 21,750. The Company estimates that a further 420 outlets will begin using the centre's services by the end of December 2009, generating an additional RMB 97,000 per month in recurring revenues.
The Company estimates that the Beijing command centre will be fully utilised by the end of 2010 and will provide BlueStar with annualised recurring revenue in the region of RMB 15 million. BlueStar believes this model can be replicated in other areas of China and has started negotiations with relevant parties in Shanghai and Guangzhou.
The Company is expected to announce its results for the six months ended 30 September 2009 on 23 November 2009 and will issue a further trading update in January 2010.
Ends-
Enquiries:-
BlueStar SecuTech, Inc. www.bstar.com.cn
Romeo Kwok, Senior Vice President & CFO + 86 10 8225 5899
Wang Chong, COO
Seymour Pierce www.seymourpierce.com
John Depasquale, Corporate Finance +44 (0)20 7107 8000
Laetitia McManus, Corporate Broking
Redleaf Communications www.redleafpr.com
Paul Dulieu / Michael Ward +44 (0)20 7566 6700
bluestar@redleafpr.com
This information is provided by RNS
The company news service from the London Stock Exchange
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