Avacta Group Plc (LON:AVCT) (AVCT, 0.875p, £12.57m) has announced the commercial launch of the AX-1, known as Midas during development. The AX-1 will enable vets to offer a point of care blood analysis - thus increasing speed of treatment, securing the customer, and enabling the up-selling of further advanced blood tests. The first test launched merely identifies if the blood chemistry is flagging an allergic reaction – but that does help narrow treatment options. The machines command a healthy gross profit and the tests offer good repeat consumable revenues with margins that will vary dependent on the cost of the chemical reagents used. The system’s cartridges ensure there are no chemicals to refill and all waste is contained in the cartridge. As important is the potential for this technology to be used for human applications – though Avacta would partner with another company given the cost and complexity of the approvals process. With first shipment s early next year and distribution agreements inevitable we maintain our SPECULATIVE BUY recommendation  

BGlobal Plc (LON:BGBL) (BGBL, 39p, £38.80m) has agreed with Ladbrokes to install 950 smart meters in its retail stores as well as meter reading, data collection and data analysis services. The installation by Ladbrokes forms part of its monitoring and energy reduction programme. We maintain the BUY recommendation with a 60p price target.

Bluestar Secutech Inc (LON:BSST) (BSST, 21.75p, £15.84m) Interims to September 2010 from the provider of video surveillance in China reports its traditionally weaker first half numbers. Revenues have risen 54% to RMB103.4m (RMB67.3m) with gross profits up 43% to RMB54.2m (RMB38m), gross margins of 52.4% (56.5%) though distribution costs soared to RMB23.10m (RMB14.74m) and admin rose to RMB20.80m (RMB17.14m)leading to adjusted PBT of RMB 11.27m (RMB7.27m) which led to EPS of fen 21.56 (fen 9.99) on the back of zero taxation. The group ended the period with net cash of RMB28.60m (RMB73.45m at the yearend) post a RMB59.63m adverse working capital movement – though the wining of a number of key contracts which were “recognised as revenue” appears to be the explanation – though the move into networked products does require higher stock levels. Traditionally cash collections are strong in Q4 of the year so working cap should reduce…

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