http://www.rcg.tv

1

Off of recent highs, good levels of EPS and against that low PER ratio.

Plenty of growth, past, present and projected.

Recent director buys at 52/53p levels, AGM is 7th of June and a dividend will be paid later in the year to holders on the register on 7th July 06.

Given its performance so far, and the fact it is now well off its recent highs, through market correction only, it looks a very good short, mid and long term buy to me.

The Board recommends a final dividend of 0.5 pence per ordinary share, which
represents a 25% increase from 2004 dividend per share. The proposed final
dividend for the year is subject to approval from the Group's shareholders
during the Annual General Meeting on 7 June 2006 and will be paid on 5 August
2006 to ordinary shareholders on the register as at 7 July 2006.

http://www.thisismoney.co.uk/news/columnists/article.html?in_article_id=408898&in_page_id=2&ito=1565

Strong growth from RFID firm RC

FAST growing and Hong Kong-based, RC Group specialises in the development, manufacture and distribution of biometric and radio frequency identification technologies.

Dramatic rises in sales and profits were announced for 2005, first orders have been won in the Middle East, and intriguing collaborations are afoot with both Sony and Intel - the latter to jointly develop RFID solutions for the Chinese healthcare sector.

RC has also bought a 60% stake in two South-East Asian IT equipment firms (with options to take the remaining 40%) for a maximum 4.7m in cash and shares in a move that will allow the company to own both facilities for the manufacture of hardware products and retail outlets to sell its biometrics products directly to consumers.

Broker Corporate Synergy has also raised a bumper 25m for the company through a new share placing pitched at 53.5p, to boost working capital and fortify the balance sheet.

The funding should help RC tap into burgeoning target markets on a tear over the past eighteen months or so, growth that helped RC post 360% sales growth to over 15m last year, with profits powering up 114% to almost 5m.

Despite its growth appeal, profitability and cash generation, RC trades on a forward multiple of only 11.4 based on forecast 2006 profits of 7.7m and earnings of 5.4p from 24m sales which looks miserly indeed. Improved liquidity and recent collaborations and acquisitions make the shares a good buy.

Recommendation - Buy

Should say those figures of forward PER ratio of times 11.4 was when the article was written and that was pre-correction, the price at that time was 61.5p (5th May 06).

Opened up today and ticked up too.

L2 up and now 1 v 1 @52.5/54.5

AGM this coming Wednesday 7th June.

PP, thanks for new thread with a realistic title. I believe these have along way to go over time as have gained a foothold in a relatively niche market of bio-metrics & security. Holding since 27p.

Silvermede, I thought it needed it, the other thread title was a little...well.....OTT ? :)

This from 26th May the interest in respect of RCG's RFID involvement (with RFID forecast to grow from $300m to $2.8 billion by 2009):

http://www.growthbusiness.co.uk/expansion/26570/rfid-goes-mainstream.thtml

Small Extract of that article :

"The control of supply chains from manufacturer to wholesaler and retailer is perhaps the most obvious use but there are much wider applications. The key to RFID is imagination, ventures Raymond Chu, chief executive of AIM-listed technology group RC. If you consider a laptop computer in an office, for instance, you could use RFID to prevent theft, because as soon as someone tries to carry that computer beyond a certain point it would trigger an alarm or subsequently use GPRS to track its location.

To reiterate the flexibility of the technology Chu points out that RC has already won deals relating to evidence management, weapon management, visitors check-in, document tracking and car parking. Many familiar with the London transport system, meanwhile, will already be carrying around an RFID chip in an Oyster Card, as will anyone in possession of a ticket for this summers football World Cup."

June 2006, general RFID progress.

Extract from the article below :

http://www.dcvelocity.com/articles/20060601/news.cfm


..............RFID gains at Wal-Mart better than expected

For those impressed by the preliminary results of Wal-Mart's RFID pilot program, we have good news. The final results have turned out to be even better.

Early reports indicated that RFID had cut out-ofstocks by 16 percent in 12 Wal-Mart test stores. But in fact, RFID has resulted in a 30-percent reduction in out-of-stocks on average. And with items that sell at a rate of six to 15 units a day, RFID has cut out-of-stocks by a whopping 62 percent.

"The preliminary results released late last year were conservative by design in that we did not want to overestimate RFID's impact," says Bill Hardgrave, director of the RFID Research Center at the University of Arkansas. Hardgrave notes that results varied widely by item. For example, with extremely slow-moving items that sell one unit every 10 days, RFID made no difference. "Those items typically will not be out of stock," he says. "Similarly, RFID didn't make a difference for items selling greater than 15 units a day, since associates stay on top of those items" to make sure they're replenished.

The use of RFID technology at the retail level could help to solve a $69 billion headache for retailers. That's the dollar value of sales lost annually by the nation's top 100 retailers due to out-ofstocks, according to Kerry Pauling, Wal-Mart's vice president of information systems. "We really believe that RFID is a very viable solution," Pauling says, adding that studies show that out-of-stocks average 8.3 percent on a global basis.

More than 300 suppliers currently ship RFIDtagged products to Wal-Mart, which receives them at five distribution centers. Wal-Mart is scanning more than three million unique tagged items per week in its network. By the end of 2007, Wal-Mart will double the number of RFID-enabled stores to 1,000 and plans to involve more than 600 suppliers in the RFID initiative.

Though some retailers have begun tagging individual items, Pauling says he doesn't expect his company to get involved in item-level tagging any time soon, though he acknowledges that Wal-Mart does some item-level tagging by default with large items like HP printers. "We'll remain focused on tagging cases and pallets for the next few years," he says..................

AGM RNS and generla update:

Immediate Release: 7th June 2006

RC Group (Holdings) Limited

(the "Group")

AGM Statement

The Directors of RC Group are pleased to announce that at the Annual General
Meeting of the Company held today, all the ordinary resolutions put to
shareholders were duly passed.

Update on Trading for the First Half of 2006

The Board is also pleased to update shareholders that the first half of 2006
has been a period through which the Group has continued its evolution and
expansion. Through its three recently acquired and integrated businesses, the
Group has successfully launched a range of new and advanced biometrics products
and has, through the period, continued to build on its collaborations with
blue-chip partners. As a result the Board strongly feels that the Group's
prospects for growth have never been greater.

One area of particular progress has been with the Group's entrance into the
Middle Eastern market where its focused efforts in establishing increased brand
recognition and credibility have proven very successful. As a result of these
increased efforts, sales recorded in the region have trebled in the first half
of the year as compared to the Group's announcement in April 2006. With this
significant growth and success, the Directors are pleased to announce the
opening of its Middle East office. The office will form the main operational
base for the Group's expansion into the Middle East market and is expected to
be fully operational within the next three months.

The Board is also pleased to announce that the Group has continued to build on
its ability to collaborate and innovate on product development and has jointly
developed an intelligent security network ("ISN") with General Electric and
Sony. The ISN uses eight interconnecting modules and will be showcased by the
Group, General Electric and Sony at the upcoming Asian Securitex 2006 which
will take place from 7 June to 9 June at the Hong Kong Convention and
Exhibition Centre. The ISN is sustained by advanced biometrics, RFID, CCTV and
DVR technologies that capture, store, track, record, project and display
information via a monitoring station.

It is the belief of the Board that with this significantly enhanced value
proposition, it is the Company's intention to make every effort to extend its
leadership position in the industry.

For further information:

Dr. Raymond Chu/ Anita Chau

RC Group (Holdings) Limited

Hong Kong

00 852 3669 6999

Romil Patel/ Rhod Cruwys

Corporate Synergy

00 44 20 7448 4400



Andrew Tan

Hansard Communications

00 44 20 7245 1100



RC Group (Holdings) Limited is a leading international developer, manufacturer
and solutions provider in the biometrics and RFID technology industries, which
was listed on the Alternative Investment Market of the London Stock Exchange in
July 2004. The Group has an aggressive growth strategy with a clear focus on
developing new applications and revenue streams for global roll-out,
particularly in the security applications industry.

Excellent AGM statement there !!

Some background info on some of the things going on in the UAE :

http://archive.gulfnews.com/articles/06/04/04/10030477.html

I'm in this one too. Good growth stock.

PP, Good find from Gulfnews - interesting references to 'GPS' and 'technology to power their notebooks' ?? Clearly RCG are aggressively expanding their portfolio of services/products, which if cost effective bodes well for the future growth of this company. :-)

Can't make sense of the selling today. A Value share with good fundamentals:

Fundamental Information
Shares in issue(m) 135.26 Div per share(DPS)(p) 6.70
Market Cap(m) 933.33 Div Yield(%) 1.33
PE Ratio 8.58 Div Cover 6.43
Operating Margin(%) 30.59
Profit Margin(%) 30.59 EPS (p) 59.00
Turnover per share(p) 1.93
PEG Factor 0.06 ROCE 133.97
Fiscal Year End Date 31/12/05 Last Update 19/06/06

All I can think of is the China Factor?????

Shake down on SpreadBet closing day, thats all.

Expect it to rise back tomorrow as people can now buy March 07 SB's now that June 06 closed today.

Well PP, today's trading statement backs up my opinion of RCG as a real VALUE share, very good news:

Embargoed Release: 07:00hrs Wednesday 21st June 2006

RC GROUP (HOLDINGS) LIMITED

(`the Group')

Trading Statement

RC Group (Holdings) Limited, the leading international security systems
provider that specialises in the development, manufacture and distribution of
biometric identification and RFID technologies, is pleased to announce that the
Group has successfully built on its achievements from last year and
outperformed its targets this financial year.

As a consequence, the Group expects to report interim results significantly
ahead of market expectations.

Dr. Raymond Chu, CEO, commented:

"As reported in our AGM statement we are very pleased with the Group's
performance to date and are very happy to once again beat market forecasts."

-Ends-

For further information:

Dr. Raymond Chu/ Anita Chau

RC Group (Holdings) Limited 00 852 3669 6999

Hong Kong

Romil Patel/ Rhod Cruwys

Corporate Synergy 00 44 20 7448 4400

Andrew Tan

Hansard Communications 00 44 20 7245 1100

RC Group (Holdings) Limited is a leading international developer, manufacturer
and solutions provider in the biometrics and RFID technology industries, which
was listed on the Alternative Investment Market of the London Stock Exchange in
July 2004. The Group has an aggressive growth strategy with a clear focus on
developing new applications and revenue streams for global roll-out,
particularly in the security applications industry.

That is a lovely update SM !! :)

More Good News :)

Friday 23rd June 2006 RC Group (Holdings) Limited

RCG successfully enters Europe Market through distributorship and partnership with NSP Europe

http://www.investegate.co.uk/Article.aspx?id=20060623070000P9A8E

This Company gets better & better, as long as the expansion doesn't stretch them too much too quickly.