Retec Share Discussion Threads

[timbo003] 28/10/2008 22:06

Lookin' good

But note to the directors:

Please do not issue any new shares at these low levels in order to finance any further expansion. Just sit tight, wait until there is a sea change in sentiment and sell out to IBM/NCR for 10p/share.

QED

[masurenguy] 28/10/2008 14:27

Very progressive set of results !

Retec Digital PLC provides multi-channel marketing solutions to retailers
designed to engage customers and increase sales. It already has systems
installed in major retail chains including Sainsbury's, WH Smith, Tesco, Boots
and Argos.

Highlights:

* Turnover up 52% to £6.21m (2007: £4.07m).

* Gross profit up 85% to £1.83m (2007: £0.99m).

* Loss before tax reduced by 60% to £0.34m (2007: £0.84m).

* Acquisition of Liquid Digital Limited on 20 May 2008 enhances our creative
capability and strengthens our relationships with WH Smith and other key
retailers.

* Agreement with NCR Corporation a significant step in extending Retec's
partnership framework.

* New customers gained during the period include ASDA, Debenhams and WH
Smith.

* In partnership with IBM UK Limited, completed the delivery of 1,340
Advantage Card kiosks to Alliance Boots and a further 1,000 Quick Pay
kiosks to Argos.

* Acquisition of ODD London Limited on 1 September 2008 (post year-end)
significantly extends Retec's product offering and range of capabilities.

Commenting on the results for the year, Sir Brian Ivory, Chairman said:

"Our first full year as a listed company has been one of significant progress,
and we enter 2008/09 with an expanded business based both on organic growth and selective acquisitions. We have been able to increase our customer base and
capabilities despite a tough economic environment for our products & services, and we will be seeking to consolidate these during the next financial year. We believe that organic growth will not be as strong during the current financial year but that the Group will continue to grow as a whole from our acquisitions. The Board remains confident of the future prospects of the Company."

[backmarker] 13/10/2008 07:43

This is the kind of news we want to hear!!

I haven't seen this technology in the shops myself, yet. Generally I hate shopping. Last time I went to Comet to investigate TVs it took ages to get hold of an assistant who could actually explain the pros/cons of plasma vs. LCD, and even then I didn't feel that confident. Tesco had some TVs at a good price, but didn't have anybody who could explain what features they had. (Eventually, after a lot more research - Amazon was a useful site - I decided on a model and got it from the cheapest internet supplier that I thought reliable.)

From what I have been able to glean, Retec's technology is the tops, and they have made or are making inroads to all the blue chip retailers. Maybe we won't see much in the share price in the current meltdown, but at least Retec should survive, in which case it should have a great future when the market turns.

[masurenguy] 13/10/2008 07:07

Product trials with Debenhams (Retec Digital)

RNS Number : 6477F
Retec Digital PLC
13 October 2008

Electrical Goods Comparison touch screen solution trials with Debenhams

Retec Digital Plc, the multi-channel marketing services company and one of the UK's leading providers of Guided Selling solutions, is pleased to announce that, in partnership with NCR Corporation (NYSE: NCR), it has been selected to provide Debenhams with an interactive Guided Selling Electrical Goods Comparison solution.

Debenhams' flagship new Westfield London store, which opens on 30th October, will trial the compelling solution which provides expert advice and recommendations on electrical products, enabling shoppers to make informed purchasing decisions in an interactive and dynamic way. The shopper simply uses the touch screen kiosk to select the category of electrical product they are looking for and specify their price, feature/functionality and brand preferences. An intelligent selection is then made and presented to them based on their requirements. Shoppers have the option of printing product comparisons and data sheets, detailing a full specification of the products, to review.

The interactive Electrical Goods Comparison solution is designed to increase sales levels for Debenhams by converting shoppers from 'browsers to buyers' whilst creating cross- and up-selling opportunities. By helping shoppers define the product features they will find useful, the solution encourages them to shift from focusing on price alone to the value it will deliver to them. It also highlights relevant accessories that customers would benefit from, enabling them to pick up everything they need in the one shopping trip. The solution will be used to support sales of a wide range of products including TVs and home entertainment systems, kitchen appliances and personal care items. It is one of a range of service and sales solutions being deployed in Debenhams flagship store in Europe's largest urban shopping centre which is opening this autumn and looks set to become one of London's top shopping destinations.

Retec Digital CEO, John Cole stated, "Retailers are finding it increasingly challenging to keep up-to-date and effectively communicate their latest feature rich and rapidly changing product lines to consumers. Our Electrical Goods Comparison solution is designed to overcome these challenges, helping retailers to diversify their offering and engage shoppers with an interactive communications channel in store. We are very excited to be working with a leading retailer like Debenhams and look forward to building on this relationship to help further enhance its in store offering with our revolutionary range of Guided Selling solutions."

This venture is a major win for Retec and further strengthens the Retec and NCR
relationship in the self-service arena. NCR is providing its NCR EasyPoint 42 kiosk together with deployment and maintenance services as an expansion to its existing contract to support Debenhams' NCR point of sale systems nationwide.

[masurenguy] 08/10/2008 18:23

"It's possible that RET may be a beneficiary of the current crisis if their blue-chip customers decide to continue investing in Retec technology."

Could be - retailers will want to maximise POS expenditure from customers who are already instore which is an easier and more cost effective option than external advertising to build traffic !

[backmarker] 08/10/2008 18:16

timboOO3,

I think the choice of 5p may relate to the price at which the loan part is convertible. As you say, good for us as less dilution.

We are due the formal annual results in 4th week of this month. Hopefully we will get a trading update as well.

It's possible that RET may be a beneficiary of the current crisis if their blue-chip customers decide to continue investing in Retec technology.

[timbo003] 11/9/2008 21:52

I'm not quite sure why they issued 5,000,000 shares priced at 5p, rather than 10,000,000 shares at 2.5p, to fund the recent acquisition but I'm not complaining.

I received an E-mail from the FD earlier today stating that the EIS certificates relating to the recent placing were now approved and in the post, Charles also stated that as a result of the recent acquisitions, it was unlikely that that Retec would qualify for EIS tax reliefs on any future fund raising going forward (as they are now in breach of the >50 employees EIS rule).

[masurenguy] 02/9/2008 08:44

Interesting to note that 95% of the consideration is in shares that is based upon a projected valuation of 5p. At the current market price of 1.875p the shares are actually valued at £93,750 or just 37.5% of the assigned valuation of 5p. The convertible loan potentially underwrites this on the basis that it can be converted into shares prior to September 2010 at the share price ruling at the time but presumably with a cap of 5p.

Looks like an interesting and synergetic deal without a major drain on cash upfront !
.....................................................................................

Press Release
2 September 2008

RETEC DIGITAL PLC

Acquisition of ODD London Limited

Retec Digital Plc, the multi-channel marketing services company and one of the
UK's largest provider of guided selling solutions which counts Tesco, Asda and
Sainsbury's amongst its clients, is pleased to announce that it has acquired
the entire share capital of ODD London Limited ("ODD"), a specialist design and
marketing agency. Retec Digital is paying a consideration of £540,000 satisfied
by the issue of 5,000,000 shares priced at 5p, £260,000 as a convertible loan
repayable by September 2010 and a further £30,000 in cash.

ODD is a design-led communications agency whose client list includes Kickers,
Kiss, New Look, Nike, Sony and Westfield. It has a multi-disciplinary offering,
which ranges from product design to fully integrated marketing campaigns. In
the year to 31 December 2007, ODD had an unaudited turnover of £2,206,000 and
profit before tax of £54,000. Its unaudited gross assets at 31 December 2007
were £667,000. The acquisition of ODD will provide Retec with several opportunities for growth resulting from the extension of the Group's product offering, which will significantly enhance Retec's range of capabilities and the acquisition of ODD's client list.

Application has been made to the London Stock Exchange for the 5,000,000 new
ordinary shares to be admitted to trading on AIM. It is expected that admission
of the new ordinary shares will become effective on AIM and that dealings will
commence at 8.00 am on 4 September 2008. The new ordinary shares will, when issued and fully paid, rank pari passu in all respects with the existing ordinary shares of the Company and will be issued subject to the memorandum and articles of association of Retec. Following this allotment, the total issued share capital of the Company will increase to 164,324,664 ordinary shares.

John Cole, CEO of Retec, stated: "We are delighted with the acquisition of ODD,
which will complement our purchase of Liquid Digital earlier this year and
further consolidates Retec's strong position in the digital media market. The
ODD creative team brings with it an impressive client base and significantly
extends Retec's range of capabilities in the fields of brand marketing,
advertising and kiosk design."

Nick Stickland and Simon Glover, joint Managing Directors of ODD, commented:
"We are very happy to be joining forces with Retec. We have worked together on
a number of successful projects to date and this acquisition will allow us to
further develop our digital expertise and accelerate growth for both ODD and
the rest of the Retec Group"

[papalpower] 22/7/2008 12:59

LOL......its very much lower now, and you have likely lost a fortune.


8Trader - 4 Apr'08 - 12:32 - 228 of 273

This stock looks well off the radar and i really like what i see
especially the cash flow as it moves towards profits.

Market cap of 3.3 mil is nice and low too.

[timbo003] 21/7/2008 20:07

There is another research note over from equity development for those of you who are interested, although I doubt if it will have any influence on sentiment (or the share price) in the short term. Retail and small cap are not the flavour of the month (understatement) at the mo'.

[encarter] 26/6/2008 22:44

What was Retecs previous deal with NCR?

[olly94] 26/6/2008 08:22

What should potential end users look for in a kiosk technology
partner?

First, retailers should make sure the company is committed to selfservice.
At NCR, over one-third of our revenues are self-service
related. NCR is the world's largest provider of self-checkouts, billpayment
kiosks, airline check-in kiosks and health care self-service
registration. And, NCR has been the largest provider of ATMs for
17 years. Self-service is not just another product line at NCR; it is a
strategic focus of our company.

[masurenguy] 26/6/2008 07:56

June 25, 2008
Partnership with NCR to Provide Guided Selling Kiosks
Self-service solution enables consumers to make more satisfying, informed product choices

LONDON -Retec Digital Plc announces an agreement with NCR Corporation (NYSE: NCR) to provide a self-service guided selling solution, including software from Retec and kiosks from NCR. Retec and NCR will also offer business store consultancy to ensure optimal placement of the kiosks in-store to drive usage, as well as deployment and maintenance services. The NCR and Retec Digital partnership has already attracted interest from several leading UK retailers who are keen to trial the combined solution. Guided selling kiosks are invaluable in assisting shoppers with purchasing decisions by providing clear and consistent product details and comparison data. They free up staff time to enhance customer services elsewhere instore and can be used to up-sell and cross-sell products, increasing revenues for the retailer.

Alessandro Santalucia, NCR's director of Indirect Sales for Retail Solutions in
Europe, commented, "Retec Digital is an exciting company, and their innovative
software solutions play an important role in expanding NCR's self-service kiosk
portfolio. Beyond this exciting opportunity to provide a best-in-class guided
selling kiosk solution, we also value the opportunity this partnership presents
to further develop the self-service market in the UK and elsewhere in Europe."

Consumers see self-service solutions as offering better service for many
different transactions. Large inventories, a high degree of reliance on
part-time workers, and staff turnover can make it difficult to ensure experts
are readily available in store to help customers. Kiosks, in contrast, present
accurate information consistently in a compelling multimedia format. Guided selling kiosks are particularly useful in the consumer electronics segment, where product choices and feature combinations can be overwhelming. For example, they can also be used to enable shoppers to sample digital content
- such as music, DVDs and games - prior to purchase, or to provide advice on
the best wines to accompany particular foods.

John Cole, chief executive officer of Retec Digital, said, "We are delighted to
have this agreement with NCR. It is a major step forward for Retec and will
make a significant difference to our business." Cole continues, "We have been incredibly successful in the UK with our products, having major contracts with Sainsbury's and Tesco, amongst others. This partnership will enable us to expand our business in the UK in conjunction with NCR."

The Retec Digital software will be made available on the compact and reliable
NCR EasyPoint(tm) 42 and NCR EasyPoint Advantage kiosks. Intuitive to use, the
kiosks can be configured with a range of processing, printing, mounting and
peripheral options.

[masurenguy] 11/6/2008 13:28

Good spot timbo003 - worth posting for easy reference. I note that this was originally written by Tom Bulford for The Penny Sleuth.
.........................................................

The hi-tech kiosk promising vintage returns
By Tom Bulford for The Penny Sleuth
11.06.2008

The other day I had to endure the agony of buying a pair of shoes for my son. As usual the store was overcrowded and untidy and what few staff there were just stood about watching as we attempted to find the right style and the right size. It drives me mad – but is the penalty we have to pay for being able to buy goods at low prices.

This 'pile it high, sell it cheap' formula has been a successful one for many a retailer, but it does have its limitations. Take wine for example. I don't know much about wine, so when I am in the supermarket I just look for a wine that is the right colour, the right price, and – yes, I admit it! – has a nice label. But the supermarket, and no doubt the producer of the wine, would like me to be a bit more sophisticated than this. They would like me to trade up, and spend more. How can they achieve this? One way would be to train an army of experts, and have them linger in the wine department of each store. This is not going to happen. Supermarkets do not train staff, because they have no expectation of keeping them. But what they can do is to copy the on-line wine retailers. They can make information available on a screen.

We are, after all, becoming more familiar with screens. We all use an ATM, we buy train tickets from the automatic machines, and at the airport we check ourselves in at the kiosk rather than stand in a long queue. So retailers now have the idea that information on wine, for example, can be made available on a touch screen placed on a small stand in the wine department. There you can learn which full-bodied red would suit your barbecue, or which dry white would wash down a nice Dover sole. But all the time, of course, the aim of the retailer is to steer you in the direction of a more expensive wine than you otherwise would have bought. These touch screens will soon be introduced into the wine departments of certain supermarkets and they will have been supplied by Retec Digital (RET), a small AIM-listed company valued at just over £4m.

Last week I met Retec's founder John Cole and finance director Charles Mckay and they told me that, although they were seeing some hesitancy in the current climate, they had an excellent pipeline of new business and felt that Retec's digital display units were finally making a breakthrough in an industry that has been much hyped. For the last few years a number of small players in this industry have been spouting the same mantra. That more advertising will be devoted to the 'in-store environment' because this is where 75% of purchasing decisions are made and that digital message boards are far superior to paper posters because they can be changed at short notice, programmed remotely and can offer sound, music and action rather than just a static image. By hanging large screens from the ceiling or placing them on the actual supermarket shelves shoppers can be guided around the store and given irresistible urges to grab products and thrust them into their trolleys.

With supermarkets more than adept at ensuring that others pay for such experimental investments much money has been lost in this area, and shares such as Mediazest (MDZ), Avanti Screenmedia (ASG) and Screen FX (VMG) have cost investors plenty. Most of these pioneers failed because of the difficulty of proving a link between the screen image and subsequent purchasing behaviour. So the crucial attraction of Retec's product is that its use can be clearly linked to higher sales. This is partly because these information terminals, or 'kiosks', can do more than just provide information to the customer and check the availability of items in store. By having the customer present his loyalty card, the retailer can capture his or her identity and by incorporating chip and pin systems, shoppers can actually make a purchase at the kiosk.

So big retailers seem to be finally acknowledging the advantages of such terminals and Retec's customers include Tesco, Sainsbury, Argos and Boots, to which it either sells directly or through a partnership with IBM. And it is an example from Sainsbury that really proves the worth of Retec's proposition. Retec supplied the supermarket giant with its 'Entertainment Xtra' display stands. These stands display DVDs and, through a number of screens, enable shoppers to watch a brief preview. For Sainsbury and Retec the deal works something like this. Sainsbury pays for the Entertainment Xtra unit – but it then quickly recoups its investment by selling display and advertising space to the DVD suppliers. Retec then makes its money through a service contract, the main element of which is to provide the screen content which is devised at its office in Lutterworth. The result is that Entertainment Xtra has boosted Sainsbury's sales of DVDs by 24%, making its investment very well worthwhile.

So Retec is going strong, and in its latest half-year delivered to its customers over 2,500 units, which will underwrite its service-based income in the future. Market forecasts suggest that it will achieve earnings per share of 0.3p this year, rising to 0.7p in 2009, putting the shares on a 2009 PE ratio of just under four. Retec is a minnow in a stock market that is currently turning a blind eye to micro-caps. But with big retailers finally convinced of the merits of digital, in-store display units and now thinking of rolling them out to other departments such as electrical goods and DIY, Retec could be the company in this hitherto disappointing sector that finally achieves stock market success.

[chairman2] 11/6/2008 12:58

Thanks timbo

nice to see the PR machine is doing something for its living.

[timbo003] 11/6/2008 12:36

There's an article on Retec (out today) published in moneyweek which is worth a read

[chairman2] 20/5/2008 23:37

Hi timbo

Yup Retec strategy summed up in that old AIM Peculiar

the go for growth at any price strategy and hope at the end
someone notices and it all works out in the wash.

Fact is they are buying two new big retail customers - thats
it pure and simple.

Payoff comes if they can convert them into regarding
RETEC as key electronic delivery partners, paying ongoing
consultancy and other fees.

Danger is they regard Retec as a supplier pure and simple,
and to keep any supplier honest you want 2 /3 of them pitching
for every bit of business on keen competitively priced terms.

Seen it a dozen times in many similar situations. Creative
starts with an unique advantage but its in their customer's
own best interests to see others catch up as fast as possible.

In this situation the customer is not your friend.

[timbo003] 20/5/2008 18:59

Hi C2

I know what you mean, we will have more goodwill on the balance sheet as a result of this acquisition, but on the other hand, thinking extremely conservatively, it will be all paid for in 12.5 years (assuming no synergies, no inflation and no growth), and the likely reality is that it will all be paid for within a fraction of that time, as there will almost certainly be synergies, inflation and growth. (and hopefully a takeover at 10p+ per share by IBM, NCR or similar)

[chairman2] 20/5/2008 10:40

isuing shares for almost zero net assets worries me a bit

after the placing earlier shows that boosting the share price is
just not a management priority here.

[timbo003] 20/5/2008 07:37

The web site for the new acquistion (announced this morning) is here



Looks like similar stuff to what Retec are already up to. I suppose 12.5X earnings and 0.5X turnover is a reasonble price in the current market and given the potential synergies

[pomp circumstance] 08/5/2008 07:53

Blimey they blew that 700k pretty quick!!

[currypasty] 08/5/2008 07:44

Subscription for 1,440,000 new ordinary shares




8 May 2008 Retec Digital PLC (the "Company") Subscription for 1,440,000 new ordinary shares Retec Digital Plc ("Retec" or the "Company"), the multi-channel marketing
services company, is pleased to announce that it proposes to raise
approximately £36,000 by way of a subscription of 1,440,000 new Ordinary Shares
at a price of 2.5 pence per ordinary share ("Subscription"), in addition to the
£0.71 million raised through the placing and subscription announced on 18 April
2008.
The New Ordinary Shares will, when issued and fully paid, rank equally in all
respects with the existing ordinary shares, including the right to receive any
dividend or other distribution declared, made or paid after the date of their
allotment. Application has been made to the London Stock Exchange for the
admission of the New Ordinary Shares and it is expected that Admission will
become effective and that trading in the New Ordinary Shares will commence on
AIM at 8.00am on 13 May 2008.

[timbo003] 08/5/2008 07:18

Well I subscribed for a few more (£3K) and the Missus went for £8Ks worth in the additional placing of 1,440,000 shares

Did anyone else here participate?

It seemed too good an offer to pass by, the directors buying in shares at 2.5p (not eligible for EIS tax relief) and I buy in at the same price, but after EIS relief, I pay only 2p.

[backmarker] 04/5/2008 14:52

My guess, fwiw, is that in spite of expected dip in revenues in retail sector the big retailers like Tesco will actually increase expenditure in this type of marketing.

Retec needs to get its own revenues up so that the gross profits more than outweigh the admin costs.

The movie kiosk could be a really good move if they can get the price/cost sorted correctly. I would assume the management of these kiosks will be fully remote, so that should mean minimal operational costs once installed, with movie royalties, telecomms, and kiosk space rental the main costs. I remember seeing a Blockbuster video machine at my local station but thought it was a good idea but limited and cumbersome. Downloading to a memory-stick is much more neat and flexible, and I assume the choice of movie available will be extremely high. Could be a nice little earner !!!