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VPhase

  • BY: Andrew Hore |
  • POSTED: 07/08/2012 |

Voltage optimisation products supplier VPhase has agreed an international factoring facility with its bank.

VPhase will be able to draw down 50% of eligible debts up to a total limit of £500,000. The bank will also provide a credit management service which will collect debts and maintain the sales ledger. There is also credit protection of up to 90% of debts outstanding.

There was still £1.35m in the bank at the end of June 2012 down from £2.15m at the end of 2011.

There are trials with 53 housing associations. Housing associations tend to rewire their properties every 25 years. There have been significant orders from two social housing organisations with more to come this year. The growth in revenues is coming from this sector. Sales through the Tesco website have yet to commence because national distribution has to be built up first. This should happen later this year.

An Australian contract was announced earlier this year. The first order was for 500 units. Revenues of £12.4m are expected over the five year agreement and sales are running ahead of the minimum levels. VPhase believes that it will take three years to reach the maximum annual figure. 

VPhase increased its revenues by 65% to £440,000 in 2011 but it is still some way from profitability.

The group loss increased from £1.71m to £1.97m. The cash outflow from operations was £1.97m in 2011.

In the first half of 2012, revenues trebled to £657,000 – more than for the whole of 2011 – but the full year figure will not meet initial expectations. Panmure Gordon cut its revenue forecast from £4.8m to £2.3m and it no longer expects a profit in 2013.

At 0.53p a share, VPhase is valued at £6.71m. The share price has halved over the past year. Last November’s fundraising was at 0.5p a share.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJuly2012_34.pdf

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