London-based financial software company AFA Systems Plc has announced its intention to float on London’s Alternative Investment Market. Mike Hart, formerly of ACT Group Plc, heads up the fledgling company as chairman and chief executive. Last October AFA acquired the software business and assets of Advanced Financial Applications Pty Ltd, which included the intellectual property rights to integrated treasury and risk management application software product, Musketeer. AFA said it has sold three packages to South African Banks and one to a leading US investment bank, and now plan an initial public offering to expand the business. About 25% of the company will be floated to raise 2.5m British pounds net of expenses at 120 pence per share, and it seems like the majority of the cash has already been ear- marked. Fistly, two new offices will join its London and Johannesburg, South African sites. Offices in Miami and Singapore are to provide support for product installations as well as serving as marketing centers for South America and the Pacific Rim. Additional staff will be required, a total debt that amounts to 675,000 pounds will be repaid, and if there is anything left after that, the remaining capital will be used to strenghthen the company’s balance sheet. For the four months to April 30, AFA reported a net loss of 133,000 compared to 121,000 pounds loss during the five months to December 31, on turnover of 217,000 pounds this year. The company said the losses primarily relate to salaries and travel expences incurred during the continued development of Musketeer, and all future revenues are planned to come from the initial license fee, implementation fees and recurring license fees. Credit Lyonnais Laing is the company’s sponsor.
