Update: Balance sheet bolstered
NetDimensions (AIM: NETD, OTCQX: NETDY) has raised £7.2m/$11.1m gross (c £6.8m/$10.5m net) in a placement of new ordinary shares. In contrast to the May 2013 placement, which was primarily about boosting the sales team, the latest fund-raising is largely about investing in R&D and support functions. It will also bolster the balance sheet, which will make the group’s products an easier sell to its increasingly blue-chip customer base, and will also provide funds for acquisitions. While there is dilution, the stronger capital base should help accelerate growth. We continue to believe there is significant upside in the shares as NetDimensions’ US-quoted SaaS peers trade on punchy EV/sales ratios.
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