8 February 2012

XN Checkout – Buy

09/03/2005

We tipped this supplier of EPOS solutions to pubs and restaurants at 141.5p in February's Growth Company Investor and, clearly, we are delighted with the subsequent trading and share price performance.

XN Checkout came to AIM last June with a £5m funding at 98p that cleared its debts. Since then it has placed shares at 99p and 155p, raising another £7.2m. Figures for the year to December revealed pre-tax profits topping £1.7m and a £3.9m PBT swing from losses of £2.2m, as sales rose 28% to £18.5m. Chief executive Ed Dayan said a slew of orders in the second half helped the company move into the black last year. Encouragingly, there was record growth in the hospitality division, where sales surged from £3.6m to £6.5m. The company has also announced its third acquisition since the end of December – it is paying a maximum £1.05m for XNA, a South African firm that distributes its products in South Africa. These include casino industry products; XNC had already made a promising debut in the casino gaming systems field, having delivered touch screen roulette systems to firms like Gala and Stanley Leisure. Following the stellar numbers, house broker and adviser Daniel Stewart has upgraded profit forecasts for 2005 from £3.1m to £5m, giving earnings of 17.9p a share and a forward rating of 15.6. We remain buyers.

Sector: Software & Computer Services

Companies: XN Checkout

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