Card-issuing and personalisation equipment maker Matica is poised for expansion after making a first-half €500,000 (£395,000) pre-tax profit.  

Operating from near Milan and quoted on AIM, Matica increased turnover 11 per cent to €7.6 million in the six months to June and converted a €200,000 loss in the first half of last year into profit, helped by winning ‘significant’ contracts from Spain, Poland and the Ukraine.

The company, which blamed 2007’s full-year loss of €1.4 million on relocation and acquisition costs, is gearing up to challenge the US market dominance in its field by the Datacard group through a 50-50 joint venture, Matica Americas, helped by the planned launch of a versatile and flexible new modular machine.

Matica, whose chief executive officer Sandro Camilleri controls the company through family interests, argues that Datacard’s recent decision to withhold ‘obsolescent’ products from distributors provides an ideal opportunity to break its 90 per cent-plus market stranglehold. The modular equipment, as yet unnamed, should go into production next year and Matica, which also plans a pitch for the UK identity card market if it comes about, has already added to its product range with last year’s acquisition of two other groups, Digicard and Fractalos.

Matica, which has put more than £1 million into Matica Americas so far, is undeniably well informed about its big competitive target. Earlier this year, Camilleri, himself a former Datacard distributor, recruited entrepreneur Gary Holland, an ex-Datacard boss, as Matica chairman, and several ex-Datacard people occupy senior positions at Matica and its new US joint venture.

Floated last year at £1, Matica shares have lost ground on AIM and now trade at a mere 26.5p. If Camilleri’s well-laid plans bear fruit, they could be in line for a rerating.

Save 50% off your first year’s subscription to Growth Company Investor magazine, and gain immediate access to all the recommendations online. Click here.

Matica	AIM	£4.08m	40.50p	0.00p
Click here for interactive charting
Other company articles:
Matica ‘takes on the big boys’			06/10/2008
Interim turnaround at Matica			22/09/2008
Matica strengthens its team			04/09/2008
Matica in US tie-up			16/07/2008
Good reception for phone retailer			12/04/2007