RNOW Research Now

RNS Number:7143P
Research Now plc
04 August 2005




Date:               Embargoed until 07.00am, Thursday 4 August 2005

                                  Research Now plc

                           Trading Begins Today on AIM



Trading in the shares of Research Now plc (AIM: RNOW) will begin today on AIM.
The placing, at 130 pence per share, successfully raised #9.2 million and was
more than twice subscribed relative to the #5 million originally sought.



Background



Research Now is a leading independent European online fieldwork provider to the
market research industry.  "Fieldwork" is the collection of survey data via
personal interviews - a process that Research Now undertakes online from its
panel of over 600,000 potential respondents - making Research Now the owner of
one of the largest online research panels in Europe.



Traditionally, market research fieldwork surveys have been undertaken on either
a 'face to face' basis or via the telephone.  Research Now believes that a
structural shift in the research industry is underway, towards undertaking
fieldwork online - largely a result of it often being cheaper, faster and better
than traditional survey methods.



The worldwide market research industry is worth an estimated total US $18.9
billion and has grown at 6.3% per annum since 1995 - outstripping both
advertising expenditure and GDP growth.  Research Now believes that of this
total, fieldwork is a significant component, with online research being the
fastest growing segment of it.



In the US, online survey research has grown from constituting only approximately
9% of the total US survey research market in 2000 to being an estimated 29% of
the market today, representing a growth rate of circa 30% per annum over the
past five years.   Research Now believes that the European online market lags
the US at only 4% market share - but it is rapidly increasing and is showing a
similar growth rate to that experienced in the US.



Over 90% of Research Now's revenues for the six months to 30 April 2005 were
derived from work subcontracted from market research agencies, which included
projects for six out of ten of the world's top agencies (based on the latest
available ESOMAR report published in 2004), with the remainder coming directly
from corporate clients.  The majority of Research Now's revenues in the second
quarter of its financial year (ending 30 April 2005) were from repeat clients.
Research Now's revenues split between two activities, namely 'Custom Projects'
(e.g. one-off projects) and 'Trackers' (e.g. ongoing projects).



Financials



Research Now is growing rapidly and is profitable.  In the eighteen month period
to 30 April 2005 turnover has risen on average by 53% each quarter.



Management



The business was founded in 2000 by Chris Havemann (Chief Executive) and Andrew
Cooper (Managing Director), although the current business activity of performing
online fieldwork was not established until 2003 when the business was
re-launched as Research Now.



Geoff Westmore has been the non-executive Chairman of Research Now since
February 2001.  Geoff was a partner at PricewaterhouseCoopers from 1983 to 2000,
latterly the firm's Global Head of Transaction Services.



Richard Dale, who from 1984 until 2000 was part of and led top rated City
analyst teams covering the European media sector at James Capel, Smith New
Court, Merrill Lynch, Salomon Brothers and Citigroup, has agreed to become a
non-executive director, upon admission.



IPO Statistics & Key Reasons for the Flotation



The placing, of 7,039,890 shares at 130 pence per share, raised #9.15 million -
well in excess of the previously given public estimate of approximately #5
million.  The offer was more than twice subscribed relative to the amount
originally sought.  Of the money raised, #2.5 million is for the business of
which the net proceeds will be applied to:



  * The development of panels
  * Working capital
  * The repayment of a factoring facility



Research Now's future strategy will focus on five main areas, namely:



  * Continuing to pursue rapid organic growth in the UK
  * Developing an overseas client base
  * Continuing to rapidly expand overseas panels
  * The development of specialist panels and
  * Potential strategic acquisitions in Europe



The company's market capitalisation at the placing price is #16.7 million, with
the total number of shares in issue upon admission being 12,874,885, with a free
float of 54.7%.  The placing attracted much interest and as a result at least 15
new institutional investors have joined the share register.



The Nominated Adviser and Broker to the placing is Canaccord Capital (Europe)
Limited.



Commenting Chris Havemann, Chief Executive of Research Now said:



"We are absolutely delighted our IPO has been so enthusiastically received by
new investors and that we were successful in raising more than we originally set
out to do.  As a result we've now got a terrific share register of truly great
institutional names who supported our placing".



"Being one of Europe's leading players in online fieldwork, we are extremely
well positioned to take advantage of the industry's structural shift away from
traditional face to face and telephone survey methods.  Online fieldwork clearly
has many advantages - it is often cheaper, faster and better - and in fact makes
some projects feasible that simply could not be performed using traditional
methods".



For further information:



Contacts:     Research Now                        Website: www.researchnow.co.uk
              Chris Havemann (Chief Executive)    Contact via Hudson Sandler, 
              Andrew Cooper (Managing Director)   Tel: 020 7796 4133

              Hudson Sandler
              Alistair Mackinnon-Musson           Tel: 020 7796 4133
              Philip Dennis                       Email:  RN@hspr.co.uk

              Photographs available:              Contact Hudson Sandler (as above)



Analyst /     Separate meetings are being held later today.  For details contact
Press         Hudson Sandler (as above)
Meetings:



PLACING STATISTICS


Placing Price                                                                                             130p

Number of Ordinary Shares in issue on Admission prior to the Placing                                10,949,885

Number of Subscription Shares being issued by the Company pursuant to the Placing                    1,925,000
Agreement

Number of Sale Shares being sold on behalf of the Selling Shareholders pursuant to the               5,114,890
Placing Agreement

Number of Ordinary Shares in issue immediately following Admission                                  12,874,885

Market capitalisation of the Company following Admission at the Placing Price                   #16,737,350.50









                                    - ENDS -


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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