Check Out XNC (XNC)

Releasing a trading statement on Tuesday 7th December, XN Checkout Plc a market leader of Electronic Point of Sale ("EPOS") solutions to leisure retail and hospitality markets advised that they expect to exceed market expectations for year end December 2004. Although they pointed out that turnover would be slightly lower than market expectations they were confident that the original earnings figure of £1.4m would be beaten. The company is expanding its business and the growth looks to be emanating from a move away from just serving its traditional managed pub groups, although this remains a core business, and into potentially lucrative markets in Casinos and hospitality businesses. The company are confident they have a strong pipeline of projects ahead which cross a wide
range of hospitality and leisure sectors and remain optimistic on prospects for 2005.

The business is expansive and reaches established presences in Australia, New Zealand, Singapore, South Africa, Russian, India, Malaysia, Thailand and Taiwan. successes with its retail software system in Asia, the company is looking to enter UK markets in 2005.

After the trading statement, XNC's earnings forecasts were raised by house broker Daniel Stewart

2004......................to 8.3p
2005.................... .to 13.0p
2006......................to 18.6p

On growth averaging around 50% for the next two years, the share trades on a forward PE of 10.5 for 2005 and only 7.4 for 2006. That equates to a PEG of only 0.18 and 0.17 respectively. Put on a simple PE of 14 or 15 gives fair value of 180-195p for 2005 and up to 280p for 2006.

Website: http://www.xncheckout.com/

http://www.xne.biz/

Daniel Stewart Upgrade March 8th 2005
http://www.saturn.uk.com/dsc_admin/XNC_morning_flash_080305.pdf