News blog

Angle

BY: Andrew Hore |
POSTED: 10/07/2008 |
COMMENTS: Add yours

Angle swung from loss to profit in the year to April 2008.

The technology company developer cut its costs and benefited from a gain on the value of its investment portfolio. Turnover from the company’s management services operations rose from £3.38m to £3.87m. On top of that, there was a £3.91m gain on the revaluation of the portfolio, against a £2m reduction the previous year. The main increases came in the valuations for computer games graphics developer Geomerics and internet personalisation technology developer Synature.

This led to a swing from a loss of £9.31m in 2006-07 to a profit of £1.12m in 2007-08. This includes the investment made in controlled investments – the portfolio companies which have to be consolidated in the figures because Angle owns a majority of their shares. That investment declined from £3.13m to £2.26m as Angle decided to conserve its cash and concentrate on existing investments rather than putting money into new ones.

There is £970,000 of cash on the balance sheet at the end of April 2008 and management believes that this is sufficient for its current needs.

The management services business has an order book worth £8.2m over three years, with £4m of that relating to the present financial year.

Angle has particularly high hopes for three of its businesses. Aguru Images, which is 75%-owned, captures and recreates photo-realistic images that can replicate the shape and texture of services. It has won its first film contract worth more than $150,000. it was used to measure the faces of actors and objects. The visual effects sector will be a major customer while architects, interior designers, online catalogues and advertising agencies are other potential users of the technology. Aguru plans to build up a library of images of shapes and textures that will be the equivalent of a photo library.

Geomerics, which is 47% owned, has developed ‘Enlighten’ which improves the lighting of computer games. It raised £2m in the past year and potential customers are evaluating the software following its launch in spring 2008. Games console manufacturers and chip makers are interested in the technology.

Parsotix, which is 68% owned, has developed the first non-invasive testing for unborn babies. It tests the mother’s blood which includes around one foetal cell for every 500m maternal cells. There are 375,000 invasive tests in the US and this new test could expand the market because it is much lower risk. Existing tests cost $1,200 each but Parsotix’s test could be less than half that price and still generate high margins. This business needs a company with distribution capability. Angle intends to increase the profile of Parsotix over the next few months.

The shares added 1.5p to 32p, valuing Angle at £8.68m. Angle has net assets of £7.22m. It has also invested £3.7m in controlled investments which isn’t valued in the balance sheet. The earn-out for Accolyte is valued at £1.9m on the balance sheet but this could be worth up to £4.7m.

If it sells one of its main businesses Angle intends to distribute a significant proportion of the cash raised to its shareholders.

Angle remains in bid talks with Braveheart Investments.

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