Record output at Cluff 19/03/2010
Potential bid candidate Cluff Gold produced 19,288 oz of gold in West Africa in the first two months of the year.
Banking software group Financial Objects intends to return £6 million of surplus cash to shareholders today – after revealing a £1.1 million interim loss. James Crux reports.
The techMARK-listed firm has been considering ways to return capital to shareholders for some time, as it has more cash than it needs for the foreseeable future. Directors believe buying back the depressed shares is the answer.
In the six months to June, Financial Objects turned a £937,000 profit into a £1.1 million loss, on sales down from from £8.7 million to £6.8 million, as tough markets put pressure on prices and customers delayed purchasing decisions. But the group maintained a positive cash flow, increasing cash balances by £1 million to £16.6 million.
At the end of June, cash 'at bank and in hand' was £19.8 million, down from £21.7 million on 31 December. Chief executive officer David Carruthers says 'We are looking to re-focus ourselves as a successful smaller company and, since we have more cash than we need, the buy-back would be earnings enhancing.'
It should also do no harm to the shares, which have fallen from a 52-week peak of £1 to 42.5p after today's 4p fall. That values the group at only £16 million.
Financial Objects provides advanced banking software and services to banks and financial services organisations, a tricky sector at present. Chairman Roger Foster says difficult market conditions are likely to continue throughout the second half and 'there is no indication yet of when the banking software market will improve'.
By contrast, the group's new technology arm, ActiveBank, prospered. By the end of July, four new licences were signed, against two for all of 2001.
Foster says most of the revenue on these contracts is yet to be recognised. ActiveBank's order backlog grew 45 per cent to £3.2 million, out of a total group order book up slightly from £9.2 million to £9.3 million.
£7,277 That’s what you would have in your portfolio if you had invested £6,000 into the six Company Watch recommendations in our April 2009 issue.
Advertisement
Growth Company Investor, in association with the London Stock Exchange, presents the most wide-ranging and detailed examination of the AIM market: AIM in Review 2010. For more information and to order, click here or contact our marketing team on 020 7250 7056.
The report reveals the top-earning chief executives and remuneration levels at AIM's most profitable and fastest-growing companies. It also examines constituent parts, including basic salary, bonus, pensions, benefits and share-based payments. To order click here.
Free access to the latest AIM stock recommendations and news from the award-winning Growth Company Investor team. Receive our tips on what stocks to buy direct to your inbox every Tuesday and Friday. Find out more today.
Cautious? Positive? Adventurous? Choose between three levels of risk for a fund of funds from Sharefunds, our sister company. Click here for more information.
The brand new, fully updated AIM Guide 2009/2010 is now available to purchase. AIM Guide is the only fully comprehensive guide to AIM and is regarded as 'must-have' for any serious investor or professional interested in the market for young, fast-growing companies. Order your copy today and benefit from a £10 discount!
This report's principal aim is to provide business owners seeking funding with information about the amount of funds that VCTs have to invest. Click here for more information.
Business XL, the award-winning monthly magazine for growing companies, is delighted to announce the launch of a new study on cash shells. The research provides a comprehensive overview of cash shells on AIM, companies that have become a significant feature on the AIM landscape. Buy the Cash Shells 2009 Research Report today or email Halid Delkic to obtain a free two-page abstract.
Daily coverage of small-cap company stocks on London's junior markets AIM and PLUS, breaking news, stock research and latest share price information for investors. Full sector coverage with all the latest news on smaller listed companies, updated several times a day with financial reports, trading statements and links to further web resources.
Advertisement
Potential bid candidate Cluff Gold produced 19,288 oz of gold in West Africa in the first two months of the year.
As foreshadowed in the latest Growth Company Investor, investment minnow Brainspark is buying into Italian football club AC Ancona.
Gold producer Avocet Mining hopes its Wega acquisition will take 2010 group output to 200,000 oz after a flat nine months.