Recognition Systems Group Plc, the Birmingham, UK-based provider of neural-based customer information systems, plans to raise 3m pounds with a rights issue and an investment by venture capitalists 3i Group which will hold just under 30% of the company’s shares. The extra funds will be used to strengthen the balance sheet, boost sales efforts in […]
Recognition Systems Group Plc, the Birmingham, UK-based provider of neural-based customer information systems, plans to raise 3m pounds with a rights issue and an investment by venture capitalists 3i Group which will hold just under 30% of the company’s shares. The extra funds will be used to strengthen the balance sheet, boost sales efforts in the US and UK and fund enhancements to the company’s software. Results for the year to September 30 have been disappointing with a net loss virtually unchanged at 2.2m pounds on revenues only 1.9% up at 788,000 pounds. Directors believe that an increasing perception among customers that its financial position is weak contributed to revenues significantly below expectations. The investment by 3i in a quoted company is unusual but executive Ian Fernie said it was confident that its 2m pound investment will allow the company to achieve strong growth.
