ULTRASIS - ONWARDS AND UPWARDS

Posted by scorpio66 on iii sharesmag writeup! internet shopping looks likely to
continue growing exponentially
while the footfall count in the
traditional high street stores gets
lower and lower. The success of
companies such as online fashion
retailer ASOS (ASC:AIM) shows how
much money there is to be made in
cyberspace and helps to lay the
ghost of the dot.com bubble.
What else is out there? One firm
that has been generating news
lately is Ultrasis, a computerised
healthcare products specialist that
launched an online retail service,
www.thewellnessshop.co.uk, at the
start of November.
The new launch sounds tailormade
for health fanatics and
hypochondriacs. The site offers
customers the chance to ‘take
maximum control of your own
health and well-being’, with
programmes to treat depression,
anxiety, insomnia and stress. No
more fronting up to a tired GP and
being told there’s nothing wrong
with you.
Ultrasis chief executive Nigel
Brabbins said at the launch that the
Wellness Shop created a ‘substantial
opportunity’ for the company. ‘With
more than 120 million people
worldwide suffering from
depression, the market for self-help
products is growing substantially as
people become more aware of the
need to seek out new ways to solve
their health problems.’ The National
Institute for Health and Clinical
Excellence (NICE) had recently
recommended the firm’s 'Beating
the Blues' computer-based
programmes should be available on
the NHS.
The long-term Ultrasis share price
chart shows a classic tech bubble
plunge, from around 73p in March
2000 to less than a penny three years
later. This year, the shares spiked to
3.4p in late February following the
announcement of NICE’s
recommendation only to fall back to
current levels around 1.48p.
In October, the £21.45 million
company reported a full-year loss
narrowing to £277,000 from £576,000
on sales that were up 37% to £1.24
million and despite what it called
'extremely difficult second -half
market conditions’.
Its share price has proved highly
sensitive to newsflow on
government contracts and
discussions with the Department of
Health. Seasoned investors will be
well aware how companies reliant
on the public sector can have the
rug pulled out from under them and
suffer delays. However, Ultrasis has
formed a strategic partnership this
year with IT and business process
service provider Agilisys, which it
says will help it take its products to
market by targeting the firm’s
private and public sector client base.
There was some market interest
in the shares when the Wellness
Shop was launched. In the absence
of any independent broker coverage
on Ultrasis, this is a long-shot
penny share punt on its retail
product taking off and justifying the
management’s confidence.