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AIMprospector

Leading tech firm combines partners and potential

AIM youngster Proxama is making fast progress in the NFC land-grab Proxama came to AIM in August 2013 through a reverse takeover. Since then, the company has announced one set of six-month results in September, raised funds in a placing in December and issued an interim management statement in January of this year. Proxama specialises in integrating Near Field Communications (NFC) and other mobile commerce technologies. Since listing, the company has interspersed its financial announcements with a series of impressive partnership announcements. If the technology proves to be a hit with consumers, shares in Proxama could be a big winner.

an enhanced connection with a customer, frequently at lower cost Services offered include mobile marketing via NFC, in-store mobile loyalty, payments and mobile wallets. Customers using Proxama’s services include mobile operators, banks, retailers and card issuers. Marketing runs through Proxama’s TapPoint solution. Here, a user can tap a device with their mobile phone (such as bus shelter advertisement) to receive current offers or vouchers from a brand. In-store mobile loyalty can remove 10

the need for membership cards and deliver electronic couponing. Proxama’s solution also enables product information to be transferred to a mobile device, for example via a QR code.

impressive partnership announcements The mobile wallet provision is a software infrastructure that Proxama can offer any business looking to launch a loyalty scheme or mobile payment ability. Proxama’s technology enables businesses to secure an enhanced connection with a customer, frequently at lower cost. One example is Proxama’s recently announced partnership with Argos. At the end of January, it was announced that Proxama had delivered an instore NFC solution at 40 Argos sites across the UK. Argos plans to use this to get their shopping app onto more customers’ phones, along with offers available at that time. For Argos, this will help push further mobile interaction and reduce hard-copy catalogue demand. Another striking deal was announced in October of last year with CBS Outdoor. Proxama will be powering all of CBS Outdoor’s NFC-enabled advertising worldwide. By the end of the year, this will include 5,000 devices on the London underground and 2,000

similar ‘assets’ (advertising posters, kiosks) at UK railway stations. Proxama gets paid on a Cost Per Tap model, along with receiving set-up fees and payments for reporting analytics.

Another striking deal was announced in October The company has also been selected as partner for Weve Pouch, a loyalty scheme offering to retailers. Weve is a joint venture between O2, EE and Vodafone. The aim is to integrate loyalty and mobile while seamlessly interfacing with a store’s crucial Point of Sale systems. It is still early days for Proxama. The company remains loss-making but well-funded after the £8.6m (before expenses) placing. Demand for this technology and level of consumer interaction is unproven. History shows however, that if an AIM-quoted company like Proxama can establish itself in a profitable niche, a larger organisation will likely bid for the company in short order. Proxama (LON:PROX) FOR Blue-chip partners already using technology Product use could scale dramatically AGAINST No profits yet Valuation demands belief in bright future Market cap Bid:offer P/E (forecast) Yield (forecast) 52week low:high

£48m 5.9p:6.25p N/A (losses forecast) 0 2.25p:8.63p

www.aimprospector.co.uk

April 2014  
April 2014  

Featuring ISG, London Capital Group, Proxama, Richoux and RWS Holdings.