I have added Densitron Technologies (LON:DSN) as speculative 2014 punt. Densitron, having been through turbulent times, they seem ready to turn the corner. Their last set of results for year ending 31/12 reported that revenue had dropped from £22.6m in 2012 to £20.0m during 2013, with profits slipping from £0.6m to £0.1m. The last financial year was hampered by the settlement of lease claim in Newcastle and the weakness of the Japanese yen against the US$.
Signs were evident within the annual report that things would improve in 2014 with the Chairman Jan G Holmstrom, commenting:
"2013 was an extremely difficult year but having now settled the claim on the property in Newcastle and addressed the cost base of the Group I believe that the business is well placed to grow profitably in the coming year."
Following on from the positive outlook tone in the end of year report they have issued a trading update on 11 June 2014 noting that a number of the projects Denistron had been working on during 2013 have now come to fruition. Noting that they have seen an increase in the core business with a rise the orders booked so far, stating a healthy increase of 35% increase in the orderbook compared to the first 5 months of 2013.
What interest me more than anything is the potential for transformational deal with British Airways. Denistron have developed a new electronic bag tag in partnership with British Airways and Designworks Windsor.
The new bag tag is one that can be used a number of times and will remove the need to print and attach traditional paper tags with customers only needing to hold their smartphone over the electronic tag.
Commenting on news of the trials, Grahame Falconer, CEO of Densitron said:
"The collaboration with British Airways is a strong indicator of the quality of Densitron's products and underlines our ability to develop cutting edge products, with a scalable design."
Frank van der Post, British Airways' managing director, brands and customer experience, said:"This is a fantastically simple, yet smart device that gives each customer the choice to have their own personalised electronic baggage tag that changes with the swipe of a smartphone - every time they fly. As the saying goes, 'good things come in…
