A company which owns four algorithms used by futures traders has listed on PLUS with a market capitalisation of £40.5 million.

A company which owns four algorithms used by futures traders has listed on PLUS with a market capitalisation of £40.5 million.

TradeLabs raised £6 million of equity finance and £2.1 million of debt prior to admission.

The Jersey-incorporated business acquired the four algorithms last year, together with income receivable from 700 subscribers who use them to run strategies on US futures exchanges. It has the right to use the algorithms and receive the income for a period of two years from October, after which it has ‘no guaranteed income’. However, it hopes to increase its subscriber base through marketing and to develop new algorithms.

The placing of 200 million shares at 20.25p was handled by broker St Helen’s Capital, with some 83 per cent of the company remaining in the hands of its directors.

TradeLabs operates its own trading desk in Dubai, and says it made a profit of £496,000 in the period from 1 October 2008 to 11 November 2008. Its subscribers pay US$99 (£65) a month for use of its algorithms.