Software stocks were on the rise on Wednesday as strong gains from Advanced Computer Software (ACS), Macromac, ServicePower and Proactis gave the sector a lift.
ACS, the AIM-listed software and IT group which provides services to the UK health, care and business sectors, impressed after saying revenues surged by 68% to £203.2m in the year to February 28th, helped by more customers taking its Software as a Service (SaaS). The shares
were up 1.4% this afternoon.
The contribution from recurring revenue rose to 64%, from 57% previously, "giving excellent revenue visibility", ACS said, adding that it is "increasingly confident about another strong year".
Broker Panmure Gordon, which raised its target price for the shares from 139p to 155p and kept a 'buy' rating, said: "Investors unnerved by the recent performance of the technology sector are likely to find comfort in Advanced's track record of delivery, earnings visibility and strong cash generation."
Macromac, the Malaysian marketing group, was extending gains after yesterday announcing the acquisition of Thailand-based mobile content provider Smile Interactive. Shares, up 4% today, have now jumped 19% over the past two days after the company said that the deal gives it entry to the Thai messaging services market "in an accelerated manner".
ServicePower Technologies, up 5% today, has secured a three-year contract for its field management software with a global financial and professional services firm working in the property sector. The unnamed client was labelled as a "strategic win" for the company, "validating investment in the innovation of our product platform".
Spend control solutions firm Proactis was rising 6% after its announcement on Tuesday of the completion of the acquisition of e-auction services business Intesource, which increases its footprint in the US market. Proactis also said that it has been awarded a GCloud V framework with the government, allowing it to deliver solutions directly to the public sector.
Top performing sectors so far today
Health Care Equipment & Services 5,809.46 +1.52%
Forestry & Paper 11,686.92 +0.93%
Oil Equipment, Services & Distribution 24,204.45 +0.52%
Software & Computer Services 1,203.11 +0.49%
Construction & Materials 4,380.64 +0.34%
Bottom performing sectors so far today
Gas, Water & Multiutilities 5,975.85 -2.95%
Industrial Metals & Mining 1,195.62 -2.07%
Mobile Telecommunications 4,587.63 -1.88%
Food & Drug Retailers 3,810.31 -1.08%
Technology Hardware & Equipment 1,096.59 -0.83%