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.
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