Rapid Technology expects to close a multimillion pound deal to supply point-of-sale terminals to computer giant IBM within a month to six weeks, Mr Roger Bannon, chief finance director of Rapid said yesterday.
Speaking after the company's a.g.m., Mr Bannon said the proposed deal was the result of an 18-month "slow and tortuous" process.
This involved testing, evaluation and a pilot project deploying IBM-compatible technology developed by Rapid in some US stores since last June, he added. Mr Bannon said he could not comment on what the IBM deal was worth. Recent speculation has suggested a figure of $50 million (€51 million) over three years. Mr Bannon said the company would be looking to raise a minimum of £3 million through a share placing shortly. The exact size of this placing depended on "circumstances yet to crystalise", he added.
Shares in Rapid Technology have surged in value since the proposed deal with IBM first emerged on December 23nd. On Monday, they hit a high of €4.50 compared to 90 cents on December 22nd, a rise of 400 per cent, before closing at €4.30. Yesterday, it rebounded to close at its €4.50 record.
The financial accounts presented to shareholders yesterday showed operating losses rising to £2,085,397 in 1999 from £1,532,735 for the year to June 30th, 1998.
Mr Bannon said sales had increased in the six months since June 1999 and he expected the company to be profitable within a relatively short timeframe.
One shareholder at the a.g.m. noted administration costs had doubled despite the fact that staff numbers had remained constant during the financial year. Mr Bannon said this reflected the type of people required to develop a high technology product. He said costs would be reduced this year as the company's manufacturing base had moved from Germany to Japan.
