A return to profit, deep cuts to the cost base, building recurring revenues and a now launched, if delayed, upgraded version of connected locking device, Watcklock.
These are the headline positives from Israeli GPS tracking and security kit designer Starcom (STAR:AIM) in today's full year 31 December 2015 results.
Here's the not so positive bits. Revenues largely flat at $5.1 million, gross margins down from 50% to 40%, it's, and it's still burning cash. The microcap ate its way through $324,000 last year although that was substantially down on the near-$2.9 million in 2014. With just $90,000 net cash on the books at the end of December another cash call is guaranteed, and the company will convene its AGM early to get the necessary nods from shareholders.
The last time it went looking for cash, in June last year, it managed to secure 475,000, but that fund raise was struck at 4p per share. Things do appear to be gradually getting better helped by a swathe of new distribution agreements signed during the past year or so, as SHARES flagged in December 2015.
But the stock has slumped again today, down 23% to a paltry 1.25p. Will those shareholders be willing to again back a business which has so far been little more than a wallet emptier? That's the $64,000 question, which is possibly more than the company will be able to raise this time round.
