RAM Vision Heads For The Fast Lane

RAM Vision is a subsidiary of Ram Investment Group (LON:RAM) , the company that continues to bear the name of its history rather than the 100% media play it became recently as a result of a reverse takeover. I’m sure this misnomer will be put straight soon.

I was privileged to attend a RAM Vision Showcase event in London on 9 Dec 10 and I can report that it painted a very encouraging picture for growth of the RAM Vision estate over the coming year. The number of so-called iconic (very large) screens is set to triple in 2011 and this, combined with the quality and new features of the RV offering, will produce a compelling package for global companies seeking measurably effective national advertising campaigns at point of sale.

The Showcase speakers gave tasters of the main exciting developments in prospect and, sure enough, this week has already seen two positive announcements. Firstly, in a partnership with MMD-Philips (as in Philips, the global electronics company), RAM announced that RAM Vision’s digital estate in UK shopping malls will be enhanced next year by the installation of the latest generation of large iconic screens.

Through this partnership, I understand the iconic screen estate will be tripled and RAM Vision, currently contracted to and broadcasting in 41 UK shopping malls plans to grow its digital estate to 74 malls over the next 12 months, as a subsequent Ooh-tv article explains.  I know there are high expectations that 2011 will therefore see annual footfall figures of 1 billion people in respect of RAM Vision’s total screen estate.

The agreement includes an underwritten buyback guarantee for the hardware which it is said makes the acquisition of the screens a proposition for asset finance and RAM is in advanced talks with prospective lenders. Tim Baldwin, Executive Chairman commented that “the beneficial consequence of the buyback guarantee is that the digital estate will now expand with recourse to fewer group funds. As growth proceeds, economies of scale with have a strongly positive effect on earnings.”

Following this news, RIG announced that RAM Vision is in advanced talks with a potential joint venture partner to jointly market a large 3D advertising screen system that is viewable without glasses.

The agreement would give Ram Vision the rights to an exclusive European installation rollout in shopping malls of large 3D screens. The 3D screens use cutting edge technology that allows viewing with no need for special glasses.

Extraordinary technology! How do they do that?  Eye-catching and attention grabbing indeed and the kit doesn't stop at 3D - it has data capture capability giving the advertisers feedback on such things as gender recognition; demographics; footfall; and viewing time metrics.

While a further announcement will be made in due course, it is noteworthy that one of the presenters at the Showcase belonged to Dubai outfit Freeray and he demonstrated such a 3D screen, manufactured by Tridelity of Germany. A recent article in Shopping Centre Magazine also breaks the story here.

Freeray has already launched the 3D screens in venues in the Middle East and Turkey to great acclaim and advertisers will apparently pay top dollar to be part of the action.

All-in-all, with the imminent building of the 3D screen estate and the extra 24 iconic Philips screens going into prime locations within prime malls from Q1 2011, thus strongly increasing attractiveness to global brands at national level, a step change in earnings growth for RAM Vision is close at hand.

Coupled with the first meaningful revenues from TrainFX’s £2.5m of existing contracts, currently well in hand and reckoned to be at around 35% margin, the evidence is mounting that the forecasts of a move to good profitability for RAM Investment Group in 2011 is increasingly well supported.

Disclosure of Interest: The author holds shares in Ram Investment Group (LON:RAM)