The Rawtenstall-based group, which was spun-out of another technology pioneer, 2ergo, has developed a system that enables consumers to pay securely for goods via their mobile phones.
Its flagship product, SAMS - Secured Advanced Message Service - is a unique and patented technology that encrypts and enhances traditional text messages, allowing sensitive data and content, such as debit or card payment details, to be sent securely over the mobile phone network.
M-commerce is viewed by many industry observers as a risky business as mobile finance is still very much in its infancy. And a number of previous entrants to the market have failed to make an impact, largely because of fears about sensitive information and financial transactions falling into the wrong hands.
As a result, mobile operators have capped the value of m-commerce transactions.
Now Broca believes it has addressed these issues without any changes to existing mobile communication infrastructure or devices.
Its technology will introduce a new secure messaging standard for mobile phone users, network operators and financial institutions - and information sent via a text cannot be intercepted from the mobile phone or 'over the air' by anyone other than the recipient.
In addition, the technology will deliver confirmation of message receipt by the recipient, which Broca believes is not currently available with other forms of mobile phone payment.
And Broca, which derived its name from the 19th century French scientist Paul Broca, who discovered that the frontal lobe of the brain was responsible for communication, has certainly been well received by the City.
Since its demerger from 2ergo in March, the company's shares have risen from 56.5p to 70.5p. The rise was largely on the back an announcement earlier this month that the group has signed a deal with one of the world's biggest mobile phone companies, Vodafone.
The link-up will see its SAMS technology resold by the telecoms giant - and under the deal, Vodafone UK will include SAMS in the messaging portfolio sold by its 'Target' sales division for corporate customers. Broca will receive payments based on the number of messages sent.
Socratos (UK)
The deal brought the number of resellers to four - others include Socratos (UK), Rapide Communications and Infinite Solution - and the group is pursuing the reseller strategy to achieve sales as fast as possible.
Broca chief executive Ian Price (pictured) said that there are a number of strong leads in the pipeline. "We have made significant progress in signing reseller agreements with a number of businesses and will work to extend our community partners.
"Reseller agreements offer a non-capital and intensive way to establish a sales infrastructure in order to begin generating income. We believe that the per message payment structure will be the most effective method of delivering long term value to shareholders."
Although Broca is operating in a relatively new market, it certainly comes from good stock. It was spun out of AIM-listed mobile technology group 2ergo which was founded in 1999 by Barry Sharples and Neale Graham.
The pair had been in business together for a number of years and were armed with a wealth of experience in technology and communication.
Barry, a mechanical and production engineer by training, had worked in IT, product development and sales and marketing - while Neale, whose background included telecommunications and software, helped set-up the Telecoms Industry Association.
The group was originally named Lammtara after the innovative technology that enabled information to be transmitted as text, voice and picture messaging to phone and computers as well as interactive applications.
The company changed its name to 2ergo before it floated on the Alternative Investment Market with a market capitalisation of around £35m.
Barry and Neale built the business on text message competitions and sports alerts as well as creating innovative technology such as enabling parents to find out whether their children were playing truant, and a tracking system for goods being delivered around the country.
The business has also made a number of strategic acquisitions including Proteus, the US-based provider of wireless applications that pioneered revenue-generating audience interactivity through mobile phones, and speech application group Natural Response.
Today the group, also based in Rawtenstall, operates in Europe and the USA and boasts international names such as ABC, Disney and Universal as customers.
It's shares have rocketed since the 2004 flotation and before the demerger it had a market capitalisation of more than £100m.
Whether Broca emulates the success of its former parent remains to be seen, and it could face stiff competition from the new PayForIt system. This system, which is being promoted by the mobile operators, uses the mobile internet rather than text messaging to make payments for content or downloads.
Nevertheless, it has recruited a number of heavyweights to its board including Peter Harvey, chief executive of UK business banking at Barclays.
Mr Price added: "In the light of the company's ambitions in the finance, banking and payments markets, the appointments reflect the credibility of Broca's technology and will enhance the breadth of sector experience to the board."
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