News

Sector movers: Autonomy's record results disappoint

23 October 2007 11:48:00

Data search software specialist Autonomy lost ground this morning despite posting record quarterly revenue in its third quarter results.

Third quarter pre-tax profit rose 56.7% to $24.9m from $15.9m in the third quarter of last year, while over the first nine months of the year profit was up 63% at $71.913m from $43.9m.

Gross margins on an adjusted basis eased, however, to 89% from 91% in the first nine months of last year.

The company also announced today it is to acquire Meridio Holdings, a provider of enterprise records management software, for around £20m. The consideration will be satisfied through the issue of 1.33m Autonomy shares with the remainder in cash.

Velosi, a provider of assurance and control services to the oil and gas industry, is climbing high after agreeing yesterday to splash out up to £3.79m on the acquisition of majority stakes in two companies.

It will pay around £1.87m for a 65% interest in Singapore's K2 Specialist Services, an inspection, testing, integrity management and engineering services firm.

The group is also spending up to £1.92m for 60% of Intec UK Limited, which supplies staff to the aviation, engineering and construction, utilities, oil and gas, and rail industries.

In addition, Intec intends to subscribe for 1m new Velosi shares at 145p each, raising £1.45m for general working capital purposes or acquisitions.

The K2 acquisition will be paid for in cash of approximately £0.94m and the rest in shares, which will be issued in three tranches subject to certain performance targets up to 2009.

There is also a call and put option over the remaining 35% interest in K2.

Meanwhile, Velosi will make an initial payment of £0.08m in cash for Intec plus £1.26m in shares, with a further £0.58m be payable in shares subject to certain profit targets being hit by Intec over a three year period.

Top performing sectors so far today
Technology Hardware & Equipment 312.50 +3.31%
Oil Equipment Services & Distribution 14,829.70 +2.87%
Forestry & Paper 4,760.90 +2.73%
General Retailers 2,241.90 +2.70%
Industrial Engineering 4,022.40 +2.65%

Bottom performing sectors so far today
Software & Computer Services 535.10 -0.26%

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