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RC Group - Mainland China distribution deal

September 2006

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • RCG
  • Price:
  • 61.5p
The shares had already started firming after the airport ‘explosives’ alert before moving higher as RC announced an agreement to enter mainland China via an exclusive reseller agreement with China’s largest IT distributor, Digital China. Under the agreement, Digital China will resell RC's fingerprint and facial recognition biometric systems throughout its network in China which comprises 6,000 resellers and stores. Meanwhile, RC is setting up a flagship store in Beijing and will recruit local staff for a new hub office. It anticipates investing approximately £1m on staff, sales and marketing during 2006 and 2007. The company states that revenues from the PRC will have a "substantial positive impact on ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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