The contract signed beginning of 2015 between GWS Production AB (GWS) and G4S Risk Consulting Ltd (G4S) will be terminated during 2016. This doesn’t affect the agreement with G4S Sverige/Sector Alarm. Behind the decision are organizational changes within G4S, and the planned release of products and services from GWS, where the contract in its current form sets limitations. GWS identifies at the same time new possibilities for cooperation within the security industry, when the exclusivity expires.
In late April, it was announced that together with G4S, GWS signed a global agreement in order to jointly address the global market for personal security solutions with GWS’ Safeture Business Solution service. The signed agreement is mutually exclusive and includes a business model for revenue sharing. The organizational restructuration within G4S during the last quarter of 2015, will according to GWS affect the sales potential for the products and services addressed in the agreement, and as a consequence, the cooperation has turned out less valuable for GWS. The agreement has a 6 months term of notice and the GWS overall services will not be affected in any short- or long-term aspects.
Andreas Rodman, CEO of GWS, confirms that it is unfortunate that the initial expectations haven’t been reached, but that it won’t affect the GWS business in a long-term perspective: sales development is positive in all targeted segments, removing exclusivity in the security segment opens new possibilities, and GWS can act independently in their product- and service development.
”With GWS future product development focus within personal security, it would have been hard to create the development we want within the actual agreement. We will soon launch a service concept that would have been restricted by the agreement, and therefore we see that it is better to terminate it when the renegotiation didn’t create the right conditions. Our strategy is to sell our solution and services in several business segments where we can provide customer value, and our sales show a positive development in all of them. Moreover, the exclusivity in the agreement has forced us to say no to other companies within the security segment, who have contacted us and wanted to offer Safeture to their customers. We have partners in this segment with a positive sales development, and our focus now will be to create more business together with present and future partners from our pipeline. During the year we have signed several important agreements and we will sign more in our targeted segments. The termination of this agreement will not affect the services provided by GWS, and in the longer perspective we can take full advantage of the development potential”, concludes Andreas Rodman.
About GWS Production AB and Safeture
GWS, Global Warning System, was founded in 2009, triggered by the experience with a global SARS epidemic, the 2004 Indian Ocean tsunami and the Mumbai terror attacks. The company offers a mobile device based, personal security service Safeture, in order to protect the traveler by real-time tracking and providing valuable real-time information about disasters and other threats that could impact on the traveler. The system consists of a range of services that are delivered via the traveler’s mobile phone and is provided to both businesses – Safeture Pro, and to private individuals – Safeture.
The GWS share is listed on NASDAQ First North Stockholm. Sedermera Fondkommission is the Certified Adviser.
For additional information on the service and GWS Production AB, visit www.globalwarningsystem.com or contact CEO Andreas Rodman, +46 (0) 708 - 10 13 16, e-mail: firstname.lastname@example.org
This is an English version of a press release communicated by GWS Production AB. In any case of doubt or possible differences regarding the different versions it is the Swedish version that shall apply.