Loss-making Birmingham software group Recognition Systems is ramping up its marketing programme in the US and Europe after receiving pounds 3 million from its December rights issue.
New chief executive Mr Brian Black, who took over from founder Prof David Bounds at the time of the rights issue, said the marketing effort would include attending trade shows around the world, extra advertising and direct marketing.
He said the new money - pounds 2 million in equity from 3i and pounds 1 million through a placing of new shares - would also be used to accelerate the expansion of its range of marketing campaign management software.
Mr Black unveiled losses for the year of pounds 2.26 million on turnover flat at pounds 788,000, in line with the company's forecast at the time of the rights issue.
The losses had arisen because potential customers had been put off by their perception that the group was financially weak, he said.
Only days after the issue was announced, US Internet software company Macromedia signed a pounds 300,000 licensing deal with Recognition.
However, finance director Mr Martin Andrews said: "We are not forecasting to make a profit this year."
He said the software - designed to allow businesses to tailor their marketing to individual customers - was unique because it combined marketing modelling software with campaign management software, two products which are normally sold separately.
Recognition's shares remained unchanged yesterday at 13p, but up from 10p at the time the rights issue was announced.
See Insider\Page 20
No comments:
Post a Comment