Fuel management systems group Orpak, which joined AIM with a �8.7m funding at 140p in December, expects significant first half sales growth on strong demand in Eastern Europe and Asia.

Orpak systems is able to integrate petrol forecourt management, petrol convenience store management and fuel delivery systems, as well as assisting fleet managers and petroleum giants in saving fuel, preventing driver fuel fraud and maximising loyalty programmes.

First quarter figures to March were very encouraging, with sales gushing 31% north to �4.98m, profit before tax rising from �660,000 to �820,000, closing net cash a bumper �12.2m and gross margins edging up from 49% to 50%.

Chief executive Hayim Kohen pointed to market share gains in established territories as well as inroads in new ones. He claims Orpak’s automated refuelling systems (incorporating payment based on vehicle identification) and its retail management systems are gaining ‘traction’ in Europe, where sales spilled 35% higher to $5.4m. Orpak now works with 25% of Turkey’s petrol stations and plans to snare further market share this year. The company also expects new orders to flow from the expansion of a key Eastern Europe client into other countries.

Growth of 300% from Asia and Africa to �420,000 arose mainly on two contracts signed in India which should boost the 2006 result and Orpak recently clinched a contract with Mega Oil, a supplier to fleets in Moscow, for its vehicle identification systems.

For the full year, Seymour Pierce left forecasts unchanged, with profits of �4.1m and earnings of 12p envisaged from a top line �25.4m. Though the broker commented that ‘the groundwork is being laid for an uplift to our 2007 estimates if momentum continues’. On a 2006 prospective multiple of 14, the shares have speculative appeal in a high oil price environment.

Orpak Systems	AIM	�54.03m	162.50p	0.00p
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