CustomVis rebuffs rebels

15/06/2009

CustomVis's laser is being trialed by London's world-leading Moorfields Eye Hospital

Laser eye surgery innovator CustomVis claims the support of its largest shareholder against an attempted coup from a group of former directors.

Canny investor and serial AIM chairman Bob Morton, who owns 22.2 per cent of AIM-listed CustomVis, is ‘very supportive’, insists CEO Paul van Saarloos, ahead of a general meeting requisitioned for Monday 6 July at the company’s London registered office. In response to the demand from the requisitioners – erstwhile directors Simon Gordon, Mukesh Jain and William Colvin – to have Van Saarloos removed from his position, he bashfully admits Morton, who has no plans to join the board yet, has described him as ‘the best CEO in the world for the company’.

Van Saarloos, the inventor of the company’s Pulzar 1 solid-state laser, adds that the plans of these former directors would herald 'a return to the bad old days [of the company]’. He argues that their proposal to run the Australia-based company from Gordon's Scotland base 'would increase the cash burn rate’ and would be foolhardy due to their ‘lack of CEO experience’.

Furthermore, CustomVis has filed a counter-claim against former sales director Jain, who served a writ on the company for additional payment, alleging that he offered customers discounts in return for personal payments.

Van Saarloos believes Gordon, Jain and Colvin have launched this revolt as the fortunes of the company have taken a turn for the better, thanks in part to the improved commercial approach and corporate governance introduced by new chairman Simon Caroll. With £2.4 million owed by debtors on long-term payment plans, and five sales contracts for Pulzar in May and June, the company is eyeing break-even.

‘With our cash burn down we don’t need to sell that many lasers a month to become cash-flow positive,’ says van Saarloos. ‘it used to have to be three. Now it’s about one and a half.’

CustomVis shares, though up from their all-time low of 0.25p to 1.6p since January, have proved dire performers since their AIM debut at 91p in 2003. The highly influential Morton first bought in through his Hawk vehicle 18 months ago at 5p, then topped up at lower levels last October.