ID Data looks to raise £6m working capital

ID Data looks to raise £6m working capital

UK chip and mag-stripe card systems vendor ID Data says it will need to raise an additional £6m in working capital as the firm reports trading losses of £4.6m for the year ending 31 March 2005.

In a trading update, the AIM-listed vendor says it has ended its financial year with sales of £19.3m, an improvement on last year's £11.4m, but estimated losses were only marginally reduced to £4.6m, from £5.1m last year.

As the company continues to incur trading losses, ID Data says it will look to raise £6m working capital, possibly through an issue of equity.

The vendor says it has also signed a joint venture agreement for the manufacturing of its cards in Poland, and will immediately relocate its closed Lewes manufacturing plant. The new Polish facility will begin operations in September 2005 and have a total capacity for 150 million units per annum.

ID Data says the move will have a "significant effect" on its cost base.

Shares in ID Data fell 7.60% to 1.50 pence on the news.

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