News

Educational computing specialist RM has signed a contract extension with Dudley Metropolitan Borough Council, under which it will continue to provide the Dudley Grid for Learning (DGfL) for a further two years.

The Group was originally awarded a ten-year, £43m contract to provide ICT to Dudley's school in 1998. Since then, the scope and scale of the service has grown and the two-year contract extension, which will include a 'refresh' of systems and infrastructure, is expected to be worth about £14m.

Advertising and marketing firm Ekay said despite a tightening of advertising spend in certain market sectors, it has continued to trade profitably during the first quarter, which is in line with expectations.

Shares in Titon Holdings dropped after the group said it will report a small net loss for the full year ended 30 September. Revenues for the fourth quarter were 10.6% lower than for the corresponding period last year.

Aim-listed insurance broker CBG has raised £1.65m though a placing of 1.375m shares at 120p per share. The money will be used to expand the business organically and for insurance broking acquisitions.

Online fashion retailer EBTM is to raise £850,000 through a placing of 85m new shares at 1p in two tranches. The placing shares represent 31.6% of the enlarged share capital.

EBTM added that online revenues have increased by 17% over the first 24 weeks of the current financial year. Trading conditions for the wholesale division remain challenging, however, and the company expects to make a small operating loss in the first half year though the bulk of sales and profits are expected in the second half of the financial year.

Hellenic Carriers has forfeited its deposit of $6.79m after pulling out of its planned acquisition of the M/V FURNESS TIMIKA, a 2001-built 52,508 DWT Supramax. Hellenic contracted to acquire the bulk carrier on 8 July for US$69.7m but now says the severe financial crisis and the prevailing poor dry bulk freight rates have led to a substantial weakening in the sale and purchase market for dry bulk vessels.

Russia-focused property developer RGI has stopped all construction across its portfolio with the exception of the Tsvetnoy development in the centre of Moscow, adding it cannot determine the impact of the current Russian economic situation and the expected delay in the development schedule. "In these extreme market conditions, with no visibility at all in the credit markets, we must protect our long-term position," chief executive Boris Kuzinez said.

Shares in FoaMasters dropped after the Asia-based manufacturer said it expects results for the year to 31 December to be below previous expectations. "Although the business remains profitable, trading conditions nevertheless are challenging," the group said.

IT recruitment consultancy Higham Systems saw interim losses narrow despite a decline in revenue. Loss before tax in the six months to end September was £0.26m, compared with a loss of £0.5m a year earlier. Revenue dipped from £7.1m to £5.7m.

The company said it is beginning to see the benefits of the cost reduction programme implemented this year, and remains cautiously confident of turning the business around.

The company has not declared an interim dividend.