I wish I had moved into this one earlier but the poor markets of the last couple of months delayed my move into it. At last it looks like Techs are back on the recipe again with the NAZ showing considerable strength in the last week or so.

XN is not a fly by night tech indeed it as been going for about 25 years and I rate its management very highly.

It is involved in Electronic Point Of Sale Systems EPOS, in several markets including Pubs, Sports Centres, clubs, Cafes,etc. It is a market leader in fact in the Pub trade.

In the last year or so it as branched out and made the acquisition of African Casino Equipment ACE a supplier of Touch Screen Equipment to the Casino Industry and XN have signed up Stanley Leisure and Gala Group to use the ace software. ACE also provide an electronic payment card used instead of cash for the machines, I beleive this part of the business will be a real growth area and I expect more sign ups.

Financial Results And Projections
The company made a pre tax profit of 2.6 million on sales of 18.3 million sterling in the last year 2004. It as around 5 million cash on the books and is cash generative on a monthly basis.

The stock trades on market cap of approx 67 million and a forward P/E of circa 14 rather low for a growth tech company.

It as a fairly high Beta.

Conclusion

I know that Mark Slater is a big fan of this company and he usually gets them right. IF ACE (The jewel In the Crown) expands as fast as I am hoping, forecasts by the house broker will be beaten and I beleive we may well be looking at a SP north of 350p this time next year.

DYOR.

Cheers GF.

Right decision GF. Winnie says that this was not a good tip and classes it as one of his failures. Sell in the market. For me it was a choice of this or MSLH I chose the latter. This did look good but the takeover has torpedoed it. Hope you got out without too many bruises.

LOL

MS