Irvine’s Gatekeeper Systems Inc., which makes an electronic gadget that keeps shopping carts from leaving a store’s parking lot, is buying back its London-traded shares with an eye toward going private.
The company, which went public on a section of the London Stock Exchange in 2004, is looking to buy back $927,000 worth of its shares.
The announcement sparked a 20% rally in Gatekeepers’ shares, which have a market value of about $10 million. The company hopes to buy up to 2.5 million of its own shares.
Orange County’s Richard John “R.J.” Brandes, who made a fortune in real estate finance in the 1990s, is chairman and majority owner of Gatekeeper.
Gatekeeper is considering delisting from London’s Alternative Investment Market, citing “significant costs savings,” according to a Bloomberg story.
The London listing has given Gatekeeper sort of split personality. The headquarters is in Irvine, but much of the financial reporting is handled like companies do across the pond.
Revenue is referred to as “turnover,” which is British parlance. And results aren’t reported quarterly, but at six and 12 months, as is the case in Europe.
For the first half of the year, Gatekeeper saw a loss of $538,000, versus a profit of $34,000 a year earlier. Revenue rose 18% to $13.5 million.
Customers include Wal-Mart Stores Inc., Costco Wholesale Corp., Target Corp. and other big retailers.
