Companies: VDS ��

Momentum is building at internet video technology provider Vividas, where first-half losses were reduced slightly to �1.4m.

Vividas, which is increasing the recognition of its brand and product, reported 38% revenue growth to �588,000 for the six months to December, paring pre-tax losses by 13% to �1.4m, and the company is signing up some of the biggest names in global media, which will kindle the recognition even faster. A partnership deal with Sky’s internet arm, Easynet, to provide corporate video is a good way for Sky to use the technology and might lead to adoption throughout its European business. Subsequently, a US branch of the Murdoch empire, Fox Sports, signed a contract to use Vividas’ pay-per-view product to screen ten South American football matches over the web. ‘We’re not sure of the revenues yet,’ admits CEO Paul Neville, ‘but it gets us in with Fox and really raises the bar.’

Other US clients on the books include Sony Pictures and sports broadcaster ESPN. Elsewhere, Neville says adult entertainment ‘has the potential to become our biggest market’ and plans to ‘look at that market direct’. Investor interest in the shares across the Pond was further stoked in January when well-respected, LA-based investment vehicle Ignition Capital bought a 6% stake.

Vividas has more than doubled since Growth Company Investor recommended it as a 2006 Christmas Stock Pick. With net cash of �3.4m, a growing market footprint and the recently-added market and strategic knowledge of former Proctor & Gamble and Sony man David Pearson on the board, the story is exciting. Yet, we are still in the opening chapters and the shares are on a weighty p/e.

Vividas	AIM	�27.18m	84.50p	-0.50p
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