Detica bounces after 20% growth
SHARES in Detica, the IT services group that was brave or foolhardy enough last month to become the first technology company to go for a full listing on the stock market for more than a year, have slid from their 400p placing price to 332 1/2p in just seven weeks.
Today they bounced a welcome 6 1/2p to 339p as the company unveiled maiden figures showing underlying growth of more than 20%. Sales for the year to end-March rose by 23% to £32.8m and pre-tax profits were up by 27% to £5.9m before flotation charges of £1.5m.
Chief executive Tom Black said that while the market remained challenging, Detica had scored by showing clients where to make their IT spending to gain the fastest returns on capital.
In particular, 60% growth in revenues from the telecoms division came almost entirely from all five British mobile networks beginning to build up their systems for third-generation phones.
Black said that having raised £14.4m through the float, Detica now had more than £13m in the bank and was looking for cash and share acquisitions. He added that the shares had 'basically tracked the fall in the sector' since the float.
