RCG expands
Article Date: Aug 30 2007Identification technology specialist RCG Holdings has doubled interim profits to £12.1 million pre-tax and extended its Asian reach.
Hong Kong-based RCG, a leading global provider of integrated biometrics and radio frequency identification (RFID) innovations, increased turnover 71 per cent to £38.7 million in the six months to June in the fast-growing security market. The AIM-quoted company launched several new products, including the BioMirage and the FxSecure Key, and raised £41.7 million at 131p in March for ‘mergers, acquisitions, research and development’.
During the first half-year, RCG commissioned a regional head office in Malaysia, opened a Thailand office and ‘secured important channels’ into the Chinese mass market through collaboration with Digital China and various distribution and technological alliances. Executive chairman Dr Raymond Chu highlights the introduction of new ‘niche RFID applications delivered in the high-value areas of anti-counterfeiting and financial industries’.
He promises a continuation of the company’s ‘aggressive growth strategy’ during the rest of 2007. In the second half-year RCG plans to release newer versions of its access control devices and a Microsoft Vista version of the popular FxGuard Windows log-on.
Floated at 10p three years ago by Investec and recommended by Growth Company Investor soon afterwards at 12p and again at 33.5p in 2005, RCG shares hit 152.25p in March. They now trade at 109p, up 4.5p this morning, valuing the company at £253 million.
Partial profit taking looks prudent. However, it could pay to hold on to a chunk for potential future growth.
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