Dr Paul van Saarloos, chief executive of bombed-out laser eye surgery innovator CustomVis, is ‘confident’ of hitting its full-year targets, but would like to strengthen the balance sheet in the long run.

Perth-based CustomVis, which raised £1.5m in January to ramp up manufacturing capabilities to three lasers a month with the potential for up to 12, shipped five lasers in the second half of the year and has 12 contracts signed for the first quarter of 2008. It has now installed 20 lasers worldwide and treated 20,000 eyes, providing a critical mass of data to attract further customers.

New Zealander van Saarloos claims the main ‘barriers to sales’ at the moment are the unfounded claims from larger rivals that CustomVis is bankrupt or unsafe, and its balance sheet weakness, which creates qualms at potential customers. With a future City fundraising, possibly with some of its existing institutional shareholders such as Aviva, AXA and Morley, or a merger with a cash-rich partner, these doubts would be erased.

More cash would allow marketing in Europe and South America to be stepped up and enable a tilt at US regulatory approval, to open up the world’s largest market. Van Saarloos, who has taken another laser through the process before, reckons US$5m (£2.4m) would cover the two-to-three year process.

M&A activity in the industry is healthy and, as the only manufacturer of its type of super-efficient laser, CustomVis’ chances of receiving a bid will increase as its critical mass builds and if it makes FDA progress. At such a low price it might prove an attractive, if high-risk punt, especially if it can raise funds next year.

Growth Company Investor is the UK’s leading authority on small-cap and AIM companies. You can gain immediate access to all the recent share recommendations with no obligation, with a free 30-day trial. Click here to join today.