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Each month we trawl through hundreds of RNS statements from AIM companies. In this column we highlight an exceptional item from an AIM company, particularly where we feel the market may not have accounted for recent news.

This month our selected Snippet company is Cinpart (CINP). We first covered Cinpart in Aimzine in October 2009. In this first article we considered the opportunity for the Company with its ‘voltage optimising’ VoltageMaster product. Read the original Aimzine article here (opens in a new window). Today, we are revisiting Cinpart to highlight a trading statement which was issued on 22 April. We reproduce the full trading statement below: This article is copyright of Aimzine Ltd. No part should be copied, reproduced or distributed in any way without prior consent. ADVFN will BAN those who post AIMZINE articles without prior permission.

The results for the year ended 31 December 2009 are expected to be in line with market expectations.

During 2009, the Company's core subsidiary, Active Energy Limited ("Active Energy"), established a strong base on which to build its presence in the voltage optimisation market.  The Directors believe that the growth potential for Active Energy's product, VoltageMaster, is significant, estimating that up to 400,000 large buildings in the UK alone could reduce their energy consumption via voltage optimisation, and the foundations put in place in 2009 represent an excellent start for Active Energy.

In addition, the Company's legacy businesses, Gasignition Limited, a supplier of electrical components to small and medium-sized European gas appliance manufacturers and Derlite Co Limited, an international manufacturer of electrical and non-electrical components, produced a creditable trading performance in a very challenging market. This article is copyright of Aimzine Ltd. No part should be copied, reproduced or distributed in any way without prior consent. ADVFN will BAN those who post AIMZINE articles without prior permission. 

The Company has continued to make progress in the current financial year and trading remains in line with expectations, underpinned by the VoltageMaster installation programme which commenced following several major contract wins, secured over the past 12 months, and the strategic relationship with Southern Electric Contracting Limited ("SEC"), a wholly owned subsidiary of Scottish and Southern Energy plc, announced on 1 February 2010.  The partnership with SEC, one of the largest mechanical and electrical contractors in the UK, has already proved beneficial in supporting the installation, in accordance with a very tight timetable, of VoltageMaster units across 52 Courts under the Ministry of Justice contract, which was announced in February 2010. Active Energy is SEC's preferred voltage optimisation technology provider for its commercial clients, which brings exciting new sales opportunities.

Given the scope of the opportunities available to Active Energy, the Company has strengthened its senior management team with two recent appointments.  Jeremy Lancaster has been appointed as CEO of the Active Energy subsidiary in order to accelerate the ongoing development of the business.  Jeremy has over 25 years' experience in senior management roles, including most recently managing the UK Region Electricity Division of Elster Group, the world leader in advanced metering infrastructure to the gas, electricity and water industries. In addition, Jonathan Beachey has been appointed as Sales Director at Active Energy with responsibility for driving the sales pipeline.  Jonathan, who has some 15 years' experience in sales and business development, joins from Hays plc where he was responsible for the sales strategy in London and developing new growth markets.

Cinpart is also pleased to announce that it has appointed several new advisers to support its growth plans.  Jendens Securities Limited ("Jendens") has been appointed to act as joint broker to the Company with immediate effect to work alongside Rivington Street Corporate Finance Limited and the Company's Nominated Adviser, Merchant John East Securities Limited. Biddick Associates has been appointed as Financial Public Relations adviser.

trading remains in line

with expectations

Aimzine Comment

From the trading statement we can see that trading is encouraging and that preparations are being made to develop the company further. Further, the results for the year to 31 December 2009 are said to be in line with expectations, which should equate to a loss approaching £1 million. The statement goes on to say that trading remains in line for the current year. This is significant because if Cinpart’s year continues in line they would, (according to recent forecasts from Edison) make a profit of £1.8 million and record earnings per share of 1.6 pence, which puts the shares on a P/E of 8.

Cinpart have quite a tough target to meet as it will be necessary for them to quadruple revenue to meet targets. However, the company, with nearly 4 months of the year gone, believe that they can do it. The tie up with the Scottish and Southern Energy - a FTSE100 company with a market capitalisation in excess of £10 billion – will be a key factor for Cinpart in reaching this year’s targets.

I spoke to Christopher Foster, executive director at Cinpart, at the recent Master Investor Show. Christopher is very upbeat about prospects for the company not only in the current year, but also in the longer term. Christopher is also optimistic that there will be international opportunities for VoltageMaster particularly in the USA. This article is copyright of Aimzine Ltd. No part should be copied, reproduced or distributed in any way without prior consent. ADVFN will BAN those who post AIMZINE articles without prior permission. 

As always, the purpose of this Snippet column is to highlight an interesting situation worthy of further research. We must add that it is impossible to tell, at this stage, how big the market for voltage optimisation products such as VoltageMaster will eventually be, but it seems like it could be huge; if it is, perhaps Cinpart will fare extremely well.

VoltageMaster                            

Written by Michael Crockett

Copyright Aimzine Ltd

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