Accountancy and finance software developer Cedardata Plc is the latest in a big band of computer-related companies to go public in London via a placing on the back of the current new issues boom. It has set a price per share of 105 pence for the 13.7m shares on offer, and trading is set to start on March 7. The New Malden, Surrey-based Oracle value added reseller will be capitalised at UKP32.2m at the placing price, is floating primarily to increase its profile among blue chip clients according to sales and marketing director Harry Menasche. The flotation will raise only UKP1.1m of new money, complementing current cash reserves of UKP1m, but according to the firm it will afford future acquisitions. Some 40% of the shares to be placed will be coming from directors; 10% of the equity will be offered to employees at the intial share price with a further 7% offered over the next three years. Cedardata is forecasting pre-tax profit of UKP2.7m and earnings per share of 6.1 pence for the year ending March 31, up from UKP430,000 in 1991. Forecast turnover for the year is UKP5.9m. The company, which reaps approximately 50% of its revenues from the public sector, markets CFACS, an Oracle-based accountancy and finance system which is designed to help public sector organisations operate more efficiently in a private sector environment. The firm is developing CFACS further using the Oracle Corporate Development Environment to build a graphical user interface into the product. It sells CFACS primarily in the UK, but has a few contracts on the continent and a dealership agreement in Australia. Future expansion will see it move into the Far East and the US through distribution arrangements, but there is no timescale for this.
