2 November 2011 – interim results/acquisition/placing

Interim results for the six months to 30 September for the identity management specialist have shown a 7% increase in revenues to £12.4m whilst pre-tax profit before exceptionals rose by 36% to £1.0m.  Reported earnings per share rose to 0.9p from 0.7p.  Cash balances at the end of the period were £4.2m.  The group has also announced the acquisition of Capscan, a leading supplier of customer registration and address management software solutions, for £11.2m.  To help fund this the group is raising around £8m through a placing of 20m shares at 40p, with 812,500 of the shares being placed with directors.  A confident statement regarding future prospects bodes well and the shares remain a  LONG TERM BUY.