SureTrack takes AIM

PLUS-quoted asset recovery and tracking specialist SureTrack has raised £1.42 million ahead of an AIM introduction next week.

The acquisitve Kenilworth-based company, which has won significant new distribution channels through deals with the Ford UK motor group and caravan maker Elddis, has two potential takeovers in its sights, which managing director Will Hirons hopes to make with a mix of cash and AIM paper.

SureTrack, which makes and services a range of products to protect, track and recover plant, equipment, vehicles, cash in transit and other assets, secured its pre-AIM funds at 0.6p, against a year's high of 1.75p and a low of 0.35p. The company's losses soared 250 per cent to £1.1 million after an £828,000 goodwill impairment charge in the year to January on nearly doubled turnover of £672,000, but Hirons argues its fortunes should now improve.

According to SureTrack, the Ford deal could generate extra income of £1 million in the first 12 months alone, with margins made healthier because it is structured so that the contracts are between SureTrack and Ford's thousands of customers rather than between tiny SureTrack and mighty Ford. Hirons is bullish on the Elddis deal and says the caravan security market, especially with second-hand caravans, is buoyant in these austere, home holidaying times.

He says SureTrack had to seek business outside its traditional but now flat markets of plant and construction and claims it won the Ford contract against much bigger competitors because their devices require costly installation, whereas SureTrack's are simply stuck on. Hirons now plans to move SureTrack into the finance and leasing markets.

Axa Framlington put £300,000 into the placing, handled by Merchant Securities, and several other institutions also came aboard. Hirons says some others said they could not subscribe to a PLUS-quoted funding, but would consider an AIM financing later on. Now 0.80p, with a 0.20p spread, SureTrack shares have undoubted speculative potential.