Research Machines Plc is finally ready to come to market – but as it has over UKP6m in the bank, it doesn’t actually need any new money, and is simply responding to the fact that its patient institutional investors are getting increasingly restive and are insisting on a market for the shares, It will place just enough shares next month to cover the cost of going public, on terms likely to value the Oxford-based educational software and personal computer specialist at about UKP30m. The company also reports that pre-tax profit for the year to end-September was UKP3.8m, up 38%, on turnover down 1% at UKP65.5m. Research Machines, founded way back in 1975, stopped designing and making computer hardware and abandoned listing plans in 1992 to restructure, pulling back to its core education market after an expensive attempt to diversify with software and systems for computer-aided design. The company formerly built its own computers, but now does only final assembly and test from bought-in subassemblies. Some institutions will be selling shares – the former Abingworth venture capital investment trust, which began liquidating its assets in 1991, has been waiting to sell its stake since then, and about 25% of the equity will be sold. Institutions hold around 54% of the equity and executives and employees the rest. The staff holding is not expected to change significantly. It expects to price the flotation on December 9 with dealings in the shares oddly scheduled to start on Christmas Eve, one of the sleepiest trading days in the calendar.
