LEADCOM, a real growth company.

MG - there was a lot of comment about needing a placing to run with the BSNL order.

That is now categorically answered as a no.


In May they raised money quick and dirty for the BSNL tender award we are led to beleive. As we all know, it got delayed and delayed and delayed. Should they have left the cash in the bank waiting ? Or should they have used it to generate higher margin business and more of it ?

They chose to use it and generate more growth, and growth of higher margin work. Yes it did leave them in a position where people could rumour of a placing for India, however the performance has also left them in a position of having now multiple channels to gain increases in working cap, and use of bonds is a great way to do it, better than using expensive debt and certainly better than a dilutive placing. Not many small caps can use bonds, and perhaps this shows that in the mid term Leadcom will no longer be a small cap on the AIM, they are aspiring higher than that. If they pull in BSNL and turn 07 revenues up into the high 200's (m$) and 08 revenues into the 400's then they certainly can be moving up an index.