News blog
Formjet
- BY: Andrew Hore |
- POSTED: 17/01/2010 |
Former Blue Oar boss Andrew Monk has big plans for Formjet.
Monk owns nearly 23% of the company, whose main business is the distribution rights to Ability software.
He is looking at acquisitions in software and other sectors. The most important thing is that the businesses should be profitable and cash generative.
At 0.8p a share, Formjet is currently worth £2.8m.
Formjet is small so nearly any acquisition could be classed as a reverse takeover. Because of that Monk would prefer to do a deal worth around £10m in order to make the most of the time that will be taken up by the deal. “A reverse takeover takes three months to do and it is quite a complex process”, says Monk.
Formjet is also set to be one of the beneficiaries of the UK government’s plan to hand out 270,000 laptops to low income families to give them access to broadband. The laptops will come with Formjet’s Ability Office software, which is a low cost alternative to Microsoft Office.
Each laptop is expected to cost £500 so the total cost of the project will be £135m. Of course, Formjet is not going to get much of that but whatever it receives it will still be significant to the business. For every £1 in revenue from each computer Formjet will generate £270,000. Formjet reported first half revenues of £1.45m but that included the distribution rights to Panda Software which were sold last year.
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