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RETEC DIGITAL - Retail Technology minnow winning contracts. (RET)     

soul traders - 20 Oct 2006 11:25

Retec Digital used to be known as Elite Strategies (ETS).

I've been in this since just before the recent placing and reverse takeover because I like the fact that the company has been busy winning numerous contracts with leading retailers. RET's technology reportedly enables retailers greatly to increase turnover by means of providing information, advertising and ordering facilites direct to customers in stores.

Definitely still fairly speculative, but could be worth keeping an eye on. PDYOR.

Chart.aspx?Provider=EODIntra&Code=RET&Si




Retec Digital prelims out today:

Retec Digital PLC - Final Results
20 October 2006

RETEC DIGITAL PLC

Preliminary Results for the Year Ended

30 June 2006

Retec Digital PLC ('Retec' or the 'Company'), the in-store digital marketing
company, is pleased to announce its first set of preliminary results as a
quoted company, for the year ended 30 June 2006.

Following the year end Retec, formerly known as Elite Strategies PLC, acquired
Retec Interface Limited and raised 1.6m through an Offer for Subscription.
Following shareholder approval, the Company changed its name to Retec Digital
plc in order to better reflect its new operations.

Financial Highlights:

* Turnover for year ended 30 June 2006: 43,758 (2005: nil)

* Loss on ordinary activities before tax for the year ended 30 June 2006:
(72,829) (2005: (109,945))

* Net current assets for year ended 30 June 2006: 601,307 (2005: 159,759)

* Completion of Offer for Subscription raising 1.6m (post year end)

Operational Highlights:

* 3 year contract signed with Sainsbury's Supermarkets Ltd to supply Retec's
Entertainment Xtra product to at least 100 stores

Since the year end:

* Agreement to provide Entertainment Xtra to at least 33 Tesco stores

* In conjunction with IBM UK Limited, won orders from both Woolworths and
Argos to supply 400 kiosks prior to the start of December 2006

* Successful acquisition of Retec Interface Limited

* Change of name to Retec Digital plc

Sir Brian Ivory, newly appointed Chairman of Retec Digital, said:

'We enter 2006/07 with a very solid platform on which to build, both
organically and by selective acquisition. The acquisition of Retec Interface
has transformed the business and we believe our relationship with IBM, as well
as our unique digital communications solutions, can deliver significant value
for our shareholders as retailers discover the merits of our products and
services.

'We look forward to reporting further progress in the development of the
Company during the current year and the Board remains confident of the future
prospects of the Company.'

- Ends -

For further information please contact:

Retec Digital PLC 01462 482944

John Cole, Chief Executive

Charles McKay, Finance Director

Hogarth Partnership Ltd 020 7357 9477

Georgina Briscoe / Charlie Field

Chairman's Statement

I am pleased to be able to make my first report to you as Chairman of the
Company.

Introduction

Last year was a period of significant change for the business. Over the year,
the underlying business of Retec Interface Limited ('Retec Interface'), in
which Elite Strategies PLC held a strategic investment, grew substantially and
the Board decided to acquire the business by means of a takeover. I am
delighted to report that following the year-end, we completed the transaction,
and on 19 September 2006 have changed the name of the Company to Retec Digital
PLC, with the principal operating business called Retec Interface.

Along with these changes have come a number of changes in the composition of
the Board. Harvey Lipsith took over as Chairman at the start of 2006 to oversee
the proposed acquisition and Stuart Guyton became Finance Director. Now that we
have successfully acquired Retec Interface, Charles McKay has joined as Finance
Director, replacing Stuart Guyton, and I replaced Harvey Lipsith as Chairman
with effect from 19 October 2006.

On your behalf I would like to thank both Harvey and Stuart for their hard work
and dedication to this business during the acquisition.

Review of activities

Results for the year ended 30 June 2006

Turnover for the year ended 30 June 2006 from continuing operations amounted to
43,758 (2005: nil). Administrative costs amounted to 173,224 (2005:
148,410), the Company received interest of 56,837 (2005: 38,495). The loss on
ordinary activities before tax amounted to 72,829 (2005: 109,945), a loss of
0.15p per ordinary share (2005: loss 0.45p). As at 30 June 2006 shareholders
funds increased to 2,260,620 (2005: 1,602,203) and cash balances amounted to
104,558 (2005: 167,575). The Company had no debts as at 30 June 2006.

The Company is not in a position to pay dividends at this time although it
remains the aspiration of the Directors to make dividend payments in future
periods in the light of future results.

Post balance sheet events

On 14 September 2006, the enlarged issued share capital of the Company was
readmitted to trading on AIM following the acquisition of Retec Interface
Limited. As part of this transaction the Company raised 1,584,250 (before
expenses) through the issue of 42,246,666 new Ordinary shares, and has issued a
further 8,622,664 options over Ordinary shares at an exercise price of 3.75p
per share.

Following the issue of equity pursuant to the acquisition of Retec Interface
Limited and the Offer for Subscription, the enlarged share capital of the
Company is now 125,155,641 Ordinary shares of 0.5 p.

The money raised will provide the Company with additional working capital
resources principally to assist the further development of Retec Interface.

The Board would like to thank the Company's shareholders and its advisers for
their support and assistance in making this acquisition take place and raising
further funds for the Company.

Operational review

Retec Digital PLC has the long term objective of becoming a leading global
provider of digital communications solutions to the retail world. Retec
Interface Limited ('Retec Interface') already has a leading position within the
UK retail market and we intend to capitalise on this as appropriate
opportunities arise to enhance shareholder value.

Retec Interface provides retailers with an in-store digital marketing package
designed to increase core sales, provide additional revenue over and above
this, improve cost control and enhance the customer experience.

Retec Interface's solutions comprise three basic components: plasma screens for
general in-store advertising; shelf-edge interactive systems activated by touch
screen, keyboard or bar-code; and shelf-edge broadcast systems sited next to a
specific product range, carrying advertising and promotional content on these
products. When combined these components join together to create a
communication channel between the retailer and its customers.

Retec Interface has made some excellent progress in the last 12 months, and
especially following the year end, with significant contract wins from some of
the UK's leading retailers, including Sainsbury's, Tesco, Woolworths and Argos.
IBM continues to be an important business partner and Retec's affiliation with
IBM has been instrumental in winning contracts with Woolworths and Argos.

Retec Interface is providing its Entertainment Xtra product to both Sainsbury's
and Tesco. This is a solution deployed in the Home Entertainment departments of
these retailers, providing customers with the opportunity to preview music,
films and games material ahead of the purchase decision.

The business is contracted to deploy its Entertainment Xtra solution in a
minimum of 100 stores by the end of October 2006 and we are on track to
successfully complete this roll-out. The revenue stream from this contract is
dependent on advertising revenues from the large screens deployed in store.

Retec Interface's contract with Tesco is based on a service model whereby Tesco
pays for the product itself including its maintenance and upkeep, but any
advertising or additional trade marketing monies flow directly to the retailer.

Woolworths and Argos are more bespoke in nature and provide different
functionality to the end user. Woolworths is an extended range kiosk that
allows customers to perform a number of functions, including browsing the
product range, as well as ordering and paying for the goods at the kiosk. Argos
is similar in that it combines the browsing, ordering and payment function in
one kiosk, reducing the need to queue whilst in an Argos store. Nearly 400
units have already been ordered by these two customers which will be installed
by the start of December 2006, in time for the busy trading period.

In addition, we are constantly looking at ways to enhance our revenue stream
and are exploring a number of different business sectors where our products may
be utilised. The Company continues to work with other blue chip retail clients
and is engaged in a number of trials and pilots that we hope will lead to
roll-outs with new customers as well as extensions with those already working
with the Company.

Outlook

We enter 2006/07 with a very solid platform on which to build, both organically
and by selective acquisition. The reverse takeover of Retec Interface means we
have transformed the business and we believe our existing relationship with
IBM, as well as our unique digital communications solutions, can deliver
significant value for our shareholders as retailers discover the merits of our
products and services.

We look forward to reporting further progress in the development of the Company
during the current year and the Board remains confident of the future prospects
of the Company.

Sir Brian Ivory

Chairman

19 October 2006



Retec Digital PLC
Major Shareholders

Shares in issue: 116.7m 0.5p Ords
Major Shareholders Amount % Holding
CSS Bridge Partners LP (Series 2) 12,500,000 9.99
Meadowside Leasing Ltd 8,750,000 6.99

Other Directors Amount % Holding
John Cole 442,922 0.354
Bryan John Ellis 250,000 0.200




soul traders - 20 Oct 2006 11:35 - 2 of 30

FWIW - this stock is still very speculative at present, so don't say you haven't been warned! However, if they can keep writing new business the way they have been, then things could start looking quite good.

IMO, PDYOR, etc.

soul traders - 06 Nov 2006 14:17 - 3 of 30

Nice tick-up today on about 400,000 shares traded.

soul traders - 08 Nov 2006 11:38 - 4 of 30

And up again: RET Bid: 3.25p Offer: 3.5p Change: 0.125


Okay, I know it's only rock 'n' roll, but I like it.

soul traders - 21 Nov 2006 11:27 - 5 of 30

More movement, on tiny volume, but furthering the nice rise seen since the beginning of the month.

RET Bid: 3.5p Offer: 4p Change: 0.125

soul traders - 21 Nov 2006 11:35 - 6 of 30

Today's rise could be linked to financial reporting from customer Argos (GUS/Home Retail Group).

Also the 400 kiosk units should be installed at Woolworths and Argos by the end of the month; an RNS may be on the way to confirm this.

soul traders - 23 Nov 2006 12:14 - 7 of 30

Retec Digital PLC - AGM Statement
RNS Number:5901M
Retec Digital PLC
23 November 2006

Thursday 23 November


Retec Digital PLC

('Retec Digital' or the 'Company')

AGM Trading Statement


At the Annual General Meeting, held this morning, Sir Brian Ivory, Chairman,
made the following statement to Retec Digital's shareholders.


'The current financial year has got off to a promising start. The reverse
takeover of Retec Interface in September 2006 means that we have transformed the
business and we believe that our unique digital communications solutions can
deliver significant value to our customers and shareholders going forward.


We are continuing to see growing demand for our services across all areas of the
retail industry. The roll-out with Sainsbury's for Entertainment Xtra is
progressing well. Over 100 stores have been installed into the Sainsbury's
estate and media sales are accelerating as we approach the busy Christmas
trading period.


The opportunities of the retail sector and the steps we are taking to expand and
strengthen our business, both in the UK and overseas, gives the Board confidence
in the future progress of the Company. We enter the new financial year with a
very solid platform on which to build, both organically and by selective
acquisition.


We look forward to reporting further progress in the development of the Company
during the current year and the Board remains confident of the future progress
of the Company.'


All resolutions proposed at the meeting were duly passed.


-Ends-

soul traders - 23 Nov 2006 12:16 - 8 of 30

Retec Digital PLC - Issue of Equity
RNS Number:5926M
Retec Digital PLC
23 November 2006



23 November 2006



Retec Digital PLC ('Retec' or 'the Company')

Issue of Equity



On 14 September 2006 it was announced that valid acceptances had been received
from shareholders of Retec Interface Ltd relating to 67,172 ordinary shares
under the Retec Offer, representing 93.3 per cent. of the issued share capital
of Retec Interface Ltd not already owned by the Company. As a result, the Retec
Offer was declared unconditional in all respects and the acquisition of Retec
Interface Ltd was completed.



The Company has now acquired the remaining balance of the Retec Interface Ltd
Ordinary shares for which acceptances were not received pursuant to the
statutory rights under section 429 of the Companies Act 1985. Accordingly the
Company has issued and allotted a further 553,500 Ordinary Shares



It is expected that Admission will take place and that dealings will commence on
Friday 24 November 2006. The New Ordinary Shares, are issued, and fully paid
and will rank pari passu in all respects with the existing Ordinary Shares.
Consequently the enlarged issue share capital of the Company is now 125,709,141
ordinary shares.


soul traders - 23 Nov 2006 12:17 - 9 of 30

Seems the MM's have adjusted the price up on the basis of today's news, in spite of apparently no trades going through:

RET Bid: 3.75p Offer: 4.25p Change: 0.375

soul traders - 23 Nov 2006 12:27 - 10 of 30

Still can't see any trades, but it's gone up again:

RET Bid: 4p Offer: 4.5p Change: 0.625

soul traders - 04 Dec 2006 11:32 - 11 of 30

On the move again - 136k traded:

RET Bid: 4p Offer: 4.5p Change: 0.125

soul traders - 13 Dec 2006 11:41 - 12 of 30

This RNS may explain the SP move - I missed it at the time of release.

Retec Digital PLC - Acquisition(s)
4 December 2006

Retec Digital acquires Media 4 UK Limited

Retec Digital PLC ('Retec' or 'the Group'), the in-store digital marketing
company, is pleased to announce the acquisition of the entire issued share
capital of Media 4 UK Limited ('Media 4'), a company that provides hardware
installation and maintenance services to Retec's clients, for a total
consideration of 192,500 in cash.

Media 4 was founded in January 2003 and is based in Bedford. It operates almost
exclusively for the Group providing hardware installation and maintenance
services to Retec's clients. Given the strong pipeline in Retec's business from
customers such as Sainsbury's and Tesco, the addition of this engineering
expertise to the Retec Group will enable the Group to offer its customers more
innovative and cost effective digital solutions as part of an end-to-end
solutions package. In particular, where multiple applications and devices are
provided to the same customer, it is anticipated that the economies of scale
will provide significant cost reductions whilst at the same time improving
margins for Retec. Media 4 will retain its name and will operate as a separate
subsidiary within the Retec Group.

Retec has paid 192,500 in cash for 100 per cent. of the issued share capital
of Media 4. In the year ended 31 December 2005, Media 4 had turnover of
273,409 and a profit before taxation of 25,236. At 31 December 2005, Media 4's
net assets were 18,740. The acquisition is expected to be earnings enhancing
within the first year of operation.

Commenting on the acquisition, John Cole, Chief Executive Officer of Retec,
said:

'We are delighted to have acquired Media 4, which adds a new portfolio of
services to our customers. Retec's expertise lies in in-store digital marketing
and Media 4's is focussed around the maintenance of the screen itself. By
bringing this business into the Group, we can offer our clients more value in
the solutions we provide to them. We look forward to working with Media 4.'

soul traders - 13 Dec 2006 11:44 - 13 of 30

Good news: - they paid only around 8 times earnings and the acquisition is expected to be immediately earnings-enhancing. The assets weren't worth much,so clearly a lot of goodwill will be entered on the balance sheet, but given the potential for cost savings and growth of Media 4's revenues due to the strong pipeline for RET's products, the acqusition looks like a very good move.

soul traders - 13 Dec 2006 12:54 - 14 of 30

According to a post over the road, on 04th Dec, "Charles Stanley has issued a Strong Buy note this morning."

I have no idea whether this is true, PDYOR.

soul traders - 14 Dec 2006 11:09 - 15 of 30

Here are the details of the Charles Stanley forecast.

Charles Stanley Securities
06-11-06 SBUY

2007
Pretax profit: -0.28M
EPS: -0.23p

2008
Pretax profit: 0.97M
EPS: 0.710

View more here:

LINK

paulbrooks71 - 14 Dec 2006 12:41 - 16 of 30

Hi ST

I've held ETS for a while, buying into them as a cash shell. I should know this, but due to a recent house move and baby, my eye has been taken off the ball somewhat! do you know what has happened to my ETS shares? do they still exist? or have they been converted into Retec shares and if so at what rate? I don't think i've received any correspondence from the Co but i may have done and lost it in all the mayhem. Any info you have would be greatly received. Thanks

soul traders - 14 Dec 2006 15:01 - 17 of 30

Hi Paul,

ETS was reverse taken over by Retec Digital and changed its name to Retec Digital at the same time. There was no share split or consolidation, or any other exchange of shares, so your holding has remained the same.

Hope this helps. please let me know if you need any more info.

ST.

paulbrooks71 - 14 Dec 2006 17:18 - 18 of 30

Thanks ST

That explains a lot

Paul

soul traders - 10 Jan 2007 11:52 - 19 of 30

Tick up today: RET Bid: 3.25p Offer: 3.75p Change: 0.25

soul traders - 25 Jan 2007 10:38 - 20 of 30

Good news in today's trading update:

Retec Digital PLC - Trading Statement
25 January 2006

RETEC DIGITAL PLC

('Retec' or 'the Group')

Trading Statement for the 6 months ended

31 December 2006

Retec Digital PLC ('Retec' or 'the Group'), the in-store digital marketing
company, is today pleased to issue the following trading update.

Retec is pleased to report that trading for the six months to 31 December 2006
was in line with management's expectations. The Group has enjoyed a busy
trading period since the acquisition of Retec Interface in September 2006 and
has won a number of contracts throughout the period with a number of large
retailers, either directly or through its business partner, IBM UK Limited.
Today, the Group's clients include national high street retailers such as
Sainsbury's, Tesco, Argos and Woolworths.

Retec has been pleased by the uptake of its Entertainment Xtra product,
particularly in relation to the Sainsbury's contract. The units have been
installed in more than 125 of Sainsbury's largest stores and these
installations have taken place ahead of schedule and within budget. This
roll-out is being extended and Retec will install units across a further 75
Sainsbury's stores, taking the total number of stores using Retec's
Entertainment Xtra product to over 200.

Over the course of the period, Retec has delivered 400 units to Woolworths and
Argos, and has successfully completed the roll out of its Entertainment Xtra
product to 32 Tesco stores.

In addition, the Group has witnessed strong demand for third party advertising
on its Entertainment Xtra units, particularly with the Sainsbury's contract.
This is a new and exciting offering which provides an additional revenue stream
to the Group and early indications are encouraging. Consequently, the Board
looks to the future with confidence.

The Group is today holding a City Day in Central London where it is showcasing
its best selling products. No new financial information will be provided at
this briefing.

soul traders - 25 Jan 2007 10:39 - 21 of 30

Up 20%, and only 20k shares traded: RET Bid: 3.5p Offer: 4p Change: 0.625

The chart for the past few months looks a bit lumpy, I have to admit. Wonder where things will go from here?

driver - 25 Jan 2007 14:52 - 22 of 30

soul
Looks like your back to where you started.

soul traders - 25 Jan 2007 16:01 - 23 of 30

Driver, that's the story of my life at the moment!!

soul traders - 07 Feb 2007 11:39 - 24 of 30

Retec Digital PLC - Directorate Change
Press Release

7 February 2007

RETEC DIGITAL PLC

('Retec' or 'the Group')

Appointment of Non-Executive Director

Retec Digital PLC ('Retec' or the 'Group'), the in-store digital marketing
company, is pleased to announce the appointment of Ian Deste, 46, as a
Non-Executive Director with immediate effect.

Ian Deste is currently VP Sales & Marketing at Coca-Cola Enterprises Ltd. He
has been at Coca-Cola Enterprises Ltd since 1990 in a number of roles,
including public affairs for the Group, and today he is responsible for all
sales and marketing in the UK. He was previously at Grand Met Brewing and
British American Tobacco ('B.A.T') where he focused on similar roles and
responsibilities.

No further disclosure is required under Paragraph (g) to Schedule Two of the
AIM Rules.

John Cole, Chief Executive, stated:

'We are delighted to welcome Ian to the Board. Ian's significant experience in
both consumer marketing and major customer management will be invaluable to
Retec as we seek to strengthen our position in the UK retail market. The Board
feels confident his skills will be of great benefit to the Group and we look
forward to working with Ian.'

soul traders - 22 Feb 2007 11:17 - 25 of 30

Interims out today, looks encouraging.

Operational and Financial Highlights:

* Acquisition of Retec Interface Limited for 2.18m and readmission to
trading on AIM on 14 September 2006;

* Increase in turnover of 57% for Retec Interface Limited for the 6 months to
31 December 2006;

* Delivery of Entertainment Xtra product installed in 125 Sainsbury's stores
and 32 Tesco stores around the UK;

* 400 units in total have been installed in Argos and Woolworths stores
across the UK;

* Acquisition of Media 4 UK Limited for 0.2m on 1 December 2006,
strengthening the Group's end-to-end solution offer for its clients.

PDYOR, etc.

soul traders - 10 May 2007 08:33 - 26 of 30

Retec Digital PLC - Retec Digital - Alliance Boots contract extended

Press Release

10 May 2007

RETEC DIGITAL PLC

('Retec' or 'the Group')

2nd generation Advantage Card kiosks to be rolled out

across 500 Alliance Boots stores

Retec Digital PLC, the in-store digital marketing company, is pleased to
announce that in connection with an Agreement entered into between Retec
Interface Limited and IBM UK Limited it has developed a 2nd generation kiosk
that will be rolled out across 500 Alliance Boots stores nationwide. This 2nd
generation 'Advantage Card Extra Points kiosk', which was developed in
conjunction with IBM UK Limited, is to upgrade the original Advantage Card
kiosks rolled out across the Boots estate in late 1999.

As part of Alliance Boots' recently announced Advantage Card kiosk rebranding
programme, over 1,200 of these new kiosks will be produced and integrated by
Retec and deployed in 500 stores nationwide before August 2007.

The new kiosks will take up less space and give a more contemporary look and
feel in-store, and Retec's new self-service technology platform will make them
even faster and easier to navigate than the previous model. The updated
technology enables special offers to be more personalised, and will therefore
facilitate greater 'footfall' across the kiosks.

John Cole, Chief Executive, stated:

'This is a significant win for Retec, following a lengthy trial and tender
process, and demonstrates yet again the value of Retec's solutions for
retailers. We are delighted to be working alongside the Boots Advantage Card
scheme - the most popular loyalty scheme in the UK - and look forward to
building on our long standing relationship with IBM and Alliance Boots, and
further strengthening our position in the UK retail market.'

- Ends -

teddybear5 - 28 Nov 2007 02:08 - 27 of 30

tipped in investors chronicle to go into pfofit in 2008 dyor cheap sp

moneyman - 27 Dec 2007 22:43 - 28 of 30

Some good buying came in today.Great little company and well worth buying a few shares in this one.

moneyman - 05 Jan 2008 21:25 - 29 of 30

Buy Retec Digital at 3.75p

Says exclusive small cap specialist website UKMicrocap.com

The Investment Case: Retec Digital (RET) operates digital point of sale 'guided selling' and self service technology applications. It boasts a blue chip client base and is benefiting from the need for retailers to compete with online information. The stock currently trades on a June 2009 multiple of just over 5 times.

Sponsored by Cornhill Asset Management
Open a FREE account with Cornhill Asset Management* for access to institutional pre-IPOs. Exceptional performance - proven and published track record, independent research and traditional service

Company Description: Retec was formed in 1999 and has since grown organically and through the acquisition of InStore Interactive in 2004. In 2006 it listed on AIM through the reverse takeover of Elite Strategies, and acquired two subsidiaries, Retec Interface Limited and Media 4 UK. The group provides retailers with a product offering known as 'Guided Selling packages'. This is based on a touch screen technology which customers can interact with to perform several functions. Customers of Retec's clients can use the screens to search for a product, to preview a DVD or even to top up a mobile phone and for many other functions. The major selling point of the product is that these screens can increase sales and improve customer satisfaction.

Retec has recently rolled out several large contracts with big retailers such as Tesco and Sainsbury and in partnership with IBM for Argos Woolworths and Boots. Retec Interface is providing its Entertainment Xtra product to both Sainsbury's and Tesco. This is a product that is deployed in the Home Entertainment departments of these retailers, providing customers with the opportunity to preview music, films and games ahead of the purchase decision. Retec now has this system in 171 Sainsbury's and 39 Tesco stores. In partnership with IBM UK Limited, Retec has gained work from Alliance Boots, Argos and Woolworths during the year. The work for Alliance Boots is to replace 1,200 Advantage Card kiosks in 500 stores.


The company's last set of results covered the 12 months to 30th June 2007. The figures are not comparable to the previous period as the company was previously a cash shell and the acquisitions over the year of Retec Interface and Media 4 have significantly changed the group. Revenues for the period stood at 4.07 million with a pre-tax loss of 0.843 million and a loss per share of 0.87p. On a like for like basis revenues in the core Retec Interface business grew by 142% to 4.5 million in the year to June 30th 2007. Gross margins increased from 8% to 26% and losses before tax were reduced by 60% to 425,000. Net cash at the end of the period stood at a healthy 1.044 million, boosted by a 1 million fund raising over the year.

Management: Retec is led by John Cole as CEO, with over 25 years in the retail sector, and specifically in point of sale operations. He founded Retec in 1999 with the goal of creating an interactive point of sale technology offering a broad level of functionality. Sir Brian Ivory is the chairman, and was formerly the head of Highland Distillers Plc. He is also a non executive of various public companies including HBOS and Remy Cointreau SA of France.

Bull Points:


- Blue chip client base

- Predictable revenue streams ahead

- Operates in a specialist, growing sector

Bear Points:

- Currently loss making

- Exposed to retail and consumer spending cycles

- Came to market via a Stephen Dean cash shell. Dean is out but his past association does not help

*The value of investments can go down as well as up. Investing in equities can lose you part or all of your capital. Smaller company shares can be relatively illiquid and thus hard to trade. And that makes such investments more of a high risk than larger company shares. Cornhill Asset Management Limited is an Appointed Representative of Argyle Investment Advisors Limited which is Authorised and regulated by the Financial Services Authority. UK-Analyst.com is owned by t1ps.com Ltd which is authorised and regulated by the FSA and can be contacted at 5-11 Worship Street, London EC2A 2BH or on 020 7562 3370.

Assessment and 2-year Target: With several pilot schemes underway for new and existing clients the company's sales pipeline looks good, especially at Sainsbury and Tesco where feedback on the current Entertainment Xtra systems has been good from both a sales and customer perspective. There is potential to expand out of the entertainment sections of these stores and pilots are underway at Tesco for putting products in another part of the store. In the pipeline the company also has pilot schemes with Asda and its partnership with IBM is producing leads.

Year to
30th June Sales
(m) Pre-Tax Profit (Loss) (m) Fully Diluted Earnings (Loss) Per Share (p) PE Ratio
2007A 4 (0.825) (0.87) NA
2008E 7.5 0.5 0.32 11.7
2009E 9 1.3 0.72 5.2

For the year to 30th June 2008 we expect Retec to post revenues of 7.5 million, with pre-tax profits of 0.5 million and fully diluted earnings of 0.32p. This puts the shares on a current year multiple of 11.7 times earnings falling to a bargain 5.2 in 2009 on the back of 0.72p of earnings. Strip out net cash of 0.8p a share and the rating looks even less demanding.

This is a relatively early stage company and has it all to do to win new contracts, but good progress has been made on this front already and we are confident that 2009 could be a big year for Retec. We believe that a mid-teens multiple would be fairer for this stock and on that basis we can see the shares trading at 5p by the second half of 2008. Buy.

Key Data
EPIC: RET
Market: AIM
Spread: 3.5p 4p (12.5%)

UKMicrocap.com is unashamedly elitist in its approach. We are elitist in that we restricting access to this site to just 200 investors. That means that when we recommend a stock our members can buy shares in that stock at, or near to, the recommended price without being trampled in the herd. If you would like to join the waiting list to join UKMicrocap.com click here.

Good luck

moneyman - 07 Jan 2008 11:34 - 30 of 30





7 January 2008 Retec Digital PLC ("Retec" or "the Company") Trading Update Retec Digital PLC, the Guided Selling specialist, today issues a trading update
for the six months to 31 December 2007. The business has continued to make good
progress with strong revenue growth based on demonstrated success with existing
customers, new products and new customers in the last six months. Trading
remains in line with management's expectations.
Operational Highlights * New trials are under way for Retec's Electrical product selector in Tesco
and ASDA.
* The number of Entertainment Xtra stores has increased to 187 Sainsbury's
stores and 47 Tesco stores around the UK, and a new trial is under way with
ASDA.
* Completion of the Alliance Boots Advantage Card kiosks contract has taken
the total number of installed units to 1,340.
* Further substantial orders have been delivered to existing blue chip
customers, including Argos.
* Development of a new software platform, enabling digital download of music,
films and videos via Retec kiosks, is progressing well.
Commenting on the period, John Cole, Chief Executive Officer said:"We have continued the momentum from last year into this trading period and
have secured a substantial increase in turnover as we continue to near
profitability. Our balance sheet remains strong, and we have invested in
developing new product lines in the period to broaden the range of Product
Selectors we are able to take to market, with notable successes for Electrical
and Wine. We believe this is just the beginning of the range of Product
Selectors that we will soon be able to offer retailers to engage customers and
increase sales.
We are very excited about the future prospects of the Group as we move into
2008, as we look to grow the business substantially, both organically and
through acquisitions. We look forward to extending our 3rd party licensing
agreements and offering new and innovative Guided Selling solutions to major
retailers that will continue to broaden our presence within their retail
network."Retec intends to issue its results for the six months to 31 December 2007
during the final week of February 2008.
- Ends -

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