Business Weekly - Cambridge, UK

The Harlow-based firm said that it expects revenue in 2007 to be significantly lower that anticipated, citing a three to six month delay in sales delivery due to product development issues and the slow progression of lock manufacturer projects into production.

Servocell recently announced a major European contract for its ‘Ready To Go’ complete lock solution, and added that market pull has increased for applications of the product line, but it said a review of product specification has caused the company to redevelop the technology, resulting in an estimated three month timescale increase.

The Active Latch technology provider said that turnover moving into 2008 will be significantly boosted by delivering a range of products in 2007 whilst securing distribution agreements.

“Whilst disappointed with delays to our product development and short term sales, I believe this is purely an issue of order timing,” said CEO, Simon Powell.

“By delivering a range of products in 2007 and securing further distribution arrangements, we are confident of achieving a significant increase in turnover moving into 2008.”

Servocell's share price has fallen dramatically, dropping 13 per cent, or 6p to 40p.