OFEX report

Ofex kicked off 2003 by welcoming one new company to its ranks, while simultaneously waving goodbye to another.

Independent financial adviser Clarkson Hill was the débutante launching itself onto the trading facility having raised £611,100 through an oversubscribed offer for subscription. The company intends to use these funds to build a national financial advisory business and currently operates from eight offices located across the country. So far, the shares have perked up half a penny to 28.5p.

End of the road

Aberdeen Steak Houses bowed out, meanwhile, after several dismal years marred by static sales and rising losses. Aberdeen called in the receivers back in September, but was suspended three months earlier due to delays in publishing its full year results. As the six-month suspension period has now expired the company's listing has been withdrawn in accordance with Ofex regulations.

Also poised to bid adieu are resources firm Pan Palladium (which says it can no longer justify the expense of being on Ofex due to limited trading in its shares) and accounting software developer SquareSum, which is currently in the process of being taken over by Aim-listed CODASciSys.

Having received valid acceptances in relation to 98.7 per cent of SquareSum's shares, CODA's £9 million cash bid has now been declared 'unconditional in all respects'. All that remains is for CODA to invoke its right to acquire the remaining SquareSum shares and assimilate the business into its own. If all goes according to plan, SquareSum's Ofex listing will be cancelled on 5 February.

Disappointing results

Departures aside, results announcements have dominated proceedings on Ofex since the turn of the year, yet these figures have – on the whole – been very disappointing.

Smart Telecom saw both third-quarter revenues and losses nearly triple to a respective £1.5 million and £1.1 million. Security products developer and one-time Aim hopeful Croma published relatively static first-quarter results. And voice and data technology specialist Ashpool Telecom saw full year sales slip from £108,389 to £82,403 and losses rise to £254,796 due to 'extremely challenging' market conditions.

West Country brewer Smiles fared slightly better as first-half sales inched up £44,679 to £802,577 and losses fell from £135,198 to £90,666. But Irish alcoholic beverage distributor Blakes Spirits finished bottom of the class as it failed to report any revenue at all in a first half statement showing losses of C99,834 (£65,680).

Trading in the shares is currently suspended as Blakes battles to secure additional funds from an, as yet unnamed, venture capital firm. Just C2,469 remained in the bank at June's half-year end.

Disperse stars

Among those releasing more positive news was Disperse Technologies, developer of a range of technologies used in the production of creams and lotions. At the company's recent AGM, chairman Colston Herbert revealed that revenues generated in the first four months of the current year had been ahead of expectations and that major beauty sector clients Estée Lauder and Bath & Body Works are to step up their use of the company's technology.

Debt free and with £1 million left in the coffers, Disperse's share price leapt 13 per cent to 67.5p on the back of Herbert's comments.

Joining Disperse on the up was drug discovery business Enact Pharma, which has advanced 3p to 21.5p on the back of news that cancer drug Voraxaze has been recommended for orphan drug status within the European Union. Once approved this will grant Voraxaze (developed to reduce toxicity during cancer therapy) market exclusivity for ten years.

Good news also for Jarvis Investment Management. The stockbroker and financial services business has noted a further flurry of interest in its cash- and TESSA-only ISA accounts and says a total of 1,901 accounts have been opened in the last six months. In anticipation of further growth (and the launch of several new products) Jarvis is now planning to move to a larger office in Tunbridge Wells. In spite of the good news, Jarvis languishes just 2p above a 12-month low at 37.5p.

Looking forward

Entertainment Now, the company behind a theatrical, touring version of TV show Stars in Their Eyes, is currently in the throes of a £500,000 fundraising ahead of its Ofex launch. Cheshire-based Acorn Corporate Finance is organising the fully underwritten offer for subscription at 45p, which is due to close on 31 January.

The firm, which also hopes to produce and develop singles and albums for Premiership football clubs, is expected to launch in early February and will be valued at £1.9 million on arrival.