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Block Shield moves towards profit

• FROM: July 2006 |
• TAGS: electronic & electrical equipment, block shield, rfid |
• COMMENTS: Add yours

• Block Shield moves towards profit
• | Printer-friendly version

Electromagnetic shielding company Block Shield increased its turnover by two-thirds last year but its RFID division has only just started to generate revenues. The RFID business could be a significant contributor next year and help Block Shield move into profit.

In the year to February 2006 the company’s loss fell from $6.3m to $4.9m on turnover of $3.9m. Research and development spending has held steady at $3m.

The electromagnetic shielding business gained its first volume order which accounts for the majority of revenues. The implementation of EU waste regulations should boost demand for the company’s shielding technology. The company did
sell one RFID machine at the end of the last financial period. Block Shield sells machines and then generates royalties
on the RFID antennae produced and an annual maintenance revenue. The royalty revenues should start to become significant in a couple of years if Block Shield is successful in selling more machines.

Block Shield will hopefully reach breakeven by the end of the year but it will still lose money for the year as a whole. The company has raised £2m since the year end and at the same time Michael Fitzgerald sold £5m worth of shares.

The current share price already assumes growth in revenues but the company’s markets are large enough for it to do much better than that over the longerterm.

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