Lo-Q

Virtual queuing systems developer Lo-Q (LOQ) has reported that, following strong demand for its services, profits will be ahead of expectations.

Speaking from the US, chief executive Tom Burnet enthused, 'We are really pleased – more people have used our product than ever before.' The AIM firm achieved a 17% year-on-year hike in average guest spend on its range of devices, and it registered a 9% increase in park attendees using its systems, against a 3% fall in park attendances.

Though best known for its applications in theme parks, during the summer Lo-Q undertook a full trial in Atlanta for its water park-focused Q-band product. Burnet says 'the trial results surpassed all our expectations'. With nothing similar in the market, this provides a huge opportunity for Lo-Q.

Lo-Q has also signed a deal to pilot a smartphone-based ticketing and queuing solution for the London Eye. Operated by Merlin Entertainment, the attraction was opened in 2000 and has ushered in more than 39m visitors. Due to the fact that it is a cloud-based solution it will not require expensive infrastructure to be installed at customer sites. Moreover, it widens the audience for its products even further, given mobile phone penetration.

The second half is always the stronger period for Lo-Q, due to seasonality. House broker Canaccord has upped its 2011 pre-tax profit by £100,000 to £2.5m, delivering EPS of 11.1p. It also expects a net cash balance of £7.1m. A year into his tenure, Burnet is clearly ringing the changes. We recommended the shares in February at 120p, but even after the increase there is likely to be more to go. Add.