Does anyone have any views on this share. I t was a play of the week in Shares mag on Thursday. They are into software, like Panda anti virus etc and according to shares are adding 12000 new customers a month. They are making profits and plan a dividend in 2006. The current price is around 7.5p and looks an interesting play.

Any thoughts?

Oh dear ! Did you also hold EVS ?

Picking up momentum now.

Daniel Stewart has issued a SELL note today :

Morning flash Formjet
24 April 2006 FMJ.L 2.75p SELL

Formjet, the distributor of software products to the UK corporate and consumer markets, has announced final results in line with expectations that were reduced in February to reflect higher one-off, exceptional costs and increased provisions (0.3m) occasioned by the closure of Cambridge based operations and the relocation of all Group business units to Crawley, West Sussex.

2005 was a very difficult year for Formjet with the departure of a number of key personnel due to ill-health, delays from its main product provider and weakness in retail IT spending. Formjet significantly expanded its cost base during the period and sales targets proved overly optimistic andforecasts were repeatedly reduced during the year. The company also suffered from a level of bad debt.

Sales at Panda Software UK, Formjets largest division, were flat a function of product delays and increased competition with the entry of Microsoft and others into the security sector and increased price competition. Although gross margins increased to 65.9% from 63.7%, Formjet suffered from increased sales salaries, recruitment costs, bad debts and group overhead. According to management, the initial contribution from SouthCoast Distributions, acquired in July, was disappointing and the targets for Ability were set far too high.

Formjet has addressed the staffing issue with the appointment of Tony Lee an experienced Finance Director and Simon Hallworth as Sales Director. The company also reports sales growth from Panda Software and SouthCoast in Q1 FY06 and believes it has sufficient resources for its 2006 programme. Net cash at period end was 0.2m.

Although the company has taken remedial steps we believe that competition in Formjets chosen markets (security and desktop productivity software) has rapidly intensified and will continue to intensify. On the basis of our current forecasts, Formjet is trading on a FY06 PER of 16.6x. We believe this fails to reflect the competitive situation and maintain our SELL recommendation.

Estimates :
Year End : 12/06 E
Turnover () : 4.6m
EBIDTA () : 0.2m
DS&C PBT* () : 0.2
Tax % : 0
DS&C EPS* (p): 0.2
DPS + (p): 0
EV/EBITDA (x) : 11.3
PER : 16.6
yeild : 0


* pre goodwill amortisation and exceptional charges.

A positive AGM statement from Formjet** helped shares continue their recent recovery, adding 0.125p higher to 2.5p. The group confirmed that it continued to performed in line with budget in the first quarter of 2006. Meanwhile, Formjet said that it was currently investigating some "interesting commercial opportunities".

KD.

Tesco to sell FoRmjet products!!!!!!!!

i hold a modest amount of this little fish nearly a year now and i refused to sell at loss. it looks like patience will pay profit instead. fingers X

Formjet to launch Tesco-branded software products




LONDON (AFX) - Formjet PLC, the AIM listed alternative software vendor, said it has entered an exclusive partnership with Tesco Stores Ltd - a subsidiary of Tesco Plc - to provide a range of utility software under the Tesco Software brand.As well as providing the Tesco branded software, Formjet will also manage the Tesco Software online facility, providing technology and customer support.The Tesco products will initially be launched in October 2006, rolling out across the UK over the next 12 months

Formjet Announces a partnership with DELL.

the same people ran Envesta who also owned the rights to the Panda brand look where they are now............

Media comment, click HERE

Another great contract win this time with Dixons ah ha he says yes PC World and encouraging results.

Don't really know why but bought in this morning at .0049p...then it ticked up a bit!..
Just fancied a punt on this one...onwards and upwards !

Anyone else still in ?

SP perking up a bit! now 20% up on my punt from 15thDec. can't be bad..onwards and upwards!