News

IT services business Xploite has secured an extension to the managed services contract it has with equipment hire specialist Speedy Hire worth up to £2.55m.

The contract, for a minimum of 18 months, includes the monitoring and management of the infrastructure that runs Speedy's crucial business applications.

"As the credit crunch bites deeper, we expect more clients to embrace managed services, due to the compelling economic benefits of replacing capital expenditure with more predictable operating expenses," said the group.

Broadband satellite operator Avanti Communications jumped after it signed a contract to provide broadband services to Prime Satellite Broadband. The initial contract value is £228,000 over three years.

"Given current macro-economic turmoil, we are comfortable in the knowledge that Avanti is fully funded, with ample cash in the most secure deposit accounts and delivering on its business plan," said the group.

Drug discovery firm Proximagen Neuroscience said it has hit the first milestone payments, worth around £3.5m equity investment at £2.27 per share, under the terms of the worldwide licensing agreement with Upsher-Smith Laboratories.

The equity investment is 90% premium to the closing price of Proximagen yesterday.

A shortage of specialist construction and engineering staff helped technical recruiter Matchtech lift profits by 29% to £12.8m in the year to July. Sales rose by 28% to £259m and the dividend increased by 14% to 15.6p.

"Overall trading in the first two months of the current year has been good, with net fee income up 13% on the same period last year and contractor numbers up 5% since the end of July. We are determined and consistent at what we do and believe we can deliver another successful year," managing director Adrian Gunn said.

Software testing specialist SQS Software Quality Systems has won a four year contract with HAVG, the organisation that manages the contracts for the German Association of General Practitioners.

SQS will act as a neutral examining authority to certify software products used by general practitioners.

The monetary worth of the contract cannot be determined as the remit consists of many small projects of variable length. However, the company said "the cumulative value of these over the next four years is expected to be of significance."

Shares in software company Macro 4 perked ahead after potential suitor Unicom Systems said if it was to make an offer, it would be satisfied in cash. It added there can be no certainty of an offer being made.

Chinese coal bed methan business Green Dragon said it noted the "substantial" drop in its share price but added that it was not aware of any reason for the movement.

Shares in Faroe Petroleum fell after the oil and gas explorer said that its Fulmar L prospect in the UK North Sea was being plugged and abandoned as the volumes of hydrocarbons discovered were not considered commercial.