Drug test firm in AIM debut

A company that has devised an on-the-spot test to detect drug abuse was today set to debut on the London stock market with a value of £27m (€40.5m).

Cozart, based at Abingdon in Oxfordshire, has forged a close relationship with the British Home Office for the use of its portable RapiScan system in the fight against drugs.

The system offers an alternative to traditional urine or blood tests by allowing police officers and healthcare workers to take samples of saliva.

It can reveal within three to 12 minutes any traces of heroin, cocaine, crack, cannabis or amphetamines.

The Home Office has sought to harness the technology in a bid to break the links between drug abuse and crime, while enabling courts to make a more informed judgement when sentencing offenders.

It awarded a contract to Cozart in December to use RapiScan on detainees who have been charged with certain “trigger” offences such as theft and burglary.

The system was rolled out to 130 police and probation sites in the UK as part of the Home Office’s criminal justice intervention programme.

Cozart is also hopeful that RapiScan will be used to test for drug abuse among drivers following new legislation introduced in the UK last year.

Managing director Dr Christopher Hand said the issue of shares at 30p each would enable the group to “build on its profitable position and accelerate its growth strategy”.

Attention is currently focused on tapping a market for treatments and tests for drug abuse – worth an estimated $1.3bn (€1.05bn)).

In addition to its use by police forces, RapiScan can also help doctors treat drug addicts and detect substance abuse in the workplace.

The company is examining ways to extend its technology for use in detecting allergies, infectious diseases and tumours.

“In the medium term, directors believe that the United States – the largest diagnostics market in the world – will provide a number of market opportunities for the group,” Cozart said.

Cozart, which employs 58 staff, has grown annual turnover to £4m (€6m) in the decade since its establishment in 1993.

Dealings in its shares will begin on Monday on the Alternative Investment Market.