11 January 2011 – pre-close trading update
In the year to 31 December 2010 revenue increased substantially and ahead of market expectations. Profit on the other hand will be significantly below expectations due to costs relating to the scaling up of existing teams, acquisitions and the settlement of a patent infringement claim in the United States. With minimal profitability anticipated in any case, that news is not the disaster it may appear to be on the surface. Of more relevance is the fact that the positive cash position equated to 15.4p per share as at 31 December and that places a very low valuation on the business. Results are due in April and we rate the shares as a BUY ahead of that announcement.