Plasmon share price rebounds after news that its revenues are back to normal
The price of Plasmon plc (PLM.L) shares staged a 15% recovery today after the professional data storage company said its revenues had been back to normal in March.
At the beginning of March Plasmon said it had experienced unexpectedly weak trading in January and February and proposed a share placing to raise £6.0m to cover its reduced liquidity position.
It also said at that time that it expected March trading to be much better. This morning it confirmed that March revenues had indeed returned to historical levels and that the outlook remains positive.
By midday, the share price had gained 11p to reach 84.50p, well off its 2006 low of 69.75p hit in late March, and above the 77.75p it was at immediately prior to the early March trading warning. But it was still well below the 128p it started the year at. At today's share price, the company is valued at £61.6m.
Plasmon also said it is detailed negotiations with a major OEM for resale of its UDO products in East Asia. It recently launched its Ultra Density Optical (UDO) Archive Appliance solution to the general storage market at the Cebit trade show.
"The market response to [it] has been very positive and coupled with improving sales to existing medical imaging customers, provides an excellent opportunity for future revenue growth. The Company is also seeing significant interest in upgrade programmes based on the cost effectiveness of the new UDO Archive Appliance solutions", it said in a statement to the London Stock Exchange.
The Company expects to announce its 2006 Preliminary Results on 1st June 2006.
The £6m placing still needs the approval of shareholders who will consider it at an Extraordinary General Meeting on 18th April.
(The picture shows part of Plasmon's ISO 9001:2000 accredited mastering suite and manufacturing facility for professional optical media at its headquarters near Cambridge.)
4th April, 2006
