Financial News

LONDON (ShareCast) - Software (Frankfurt: A0XFVC - news) company Microgen (LSE: MCGN.L - news) is selling its non-core billing services division to Swiss Post for £7.5m before expenses. Shareholders are required to agree to this disposal. A special dividend of 4p a share is proposed while Microgen will retain the rest of the cash.

The division is profitable but Microgen believes it will prosper as part of a much larger business.

The Aptitude division is winning new software contracts from large banks but some work has been delayed due to changes in US accounting rules. Strong recurring revenues have helped the financial systems division weather the current market conditions.

Management says that Microgen is on track to exceed its expectations for 2009.

Microgen had net cash of £15.2m at the end of September 2009 and the disposal, minus the dividend payment, will further boost this cash pile. Microgen has raised cash by selling more than one-half of its stake in SciSys (LSE: GB0152075.L - news) .

Germs eradicating technology company PuriCore (LSE: PURI.L - news) reported a 25% increase in third quarter sales to $10.8m, taking the nine months total to $29.6m, up 6% on the first nine months of 2008. The main growth came in the UK endoscopy sterilisation business which was helped by the acquisition of Labcaire Systems.

The US food safety business improved revenues by 10% and it remains the bigger contributor. It has signed a contract that should be worth $4.7m next year.

The business model is being changed from outright sales to a leasing model. That could hold back short-term revenue growth but it will provide recurring revenues.

Nomura forecasts a 2009 loss of $8.8m on revenues of $41.1m.

FTSE TechMARK - Risers Microgen (MCGN) 86.00p +8.18% Puricore (PURI) 14.75p +7.27% Emblaze (LSE: BLZ.L - news) (BLZ) 49.00p +3.70% Kofax (KFX) 184.75p +3.36% Torotrak (TRK) 26.25p +2.94% Corin Group (LSE: GB3152652.L - news) (CRG) 73.50p +2.08% Alphameric (LSE: ALM.L - news) (ALM) 31.75p +1.60% Filtronic (LSE: FTC.L - news) (FTC) 34.00p +1.49% Alterian (LSE: ALN.L - news) (ALN) 180.00p +1.41% Renovo Group (LSE: RNVO.L - news) (RNVO) 25.00p +1.01%

FTSE TechMARK - Fallers Oxford Biomedica (LSE: OXB.L - news) (OXB) 13.50p -8.47% Skyepharma (LSE: SKP.L - news) (SKP) 95.00p -7.77% RM Group (RM (LSE: RM.L - news) .) 148.00p -4.52% Ricardo Group (RCDO) 227.00p -4.22% Ark Therapeutics (LSE: AKT.L - news) (AKT) 41.50p -4.05% DRS Data (DRS) 14.50p -3.33% KCOM Group (LSE: KCOM.L - news) (KCOM) 39.75p -3.05% Vernalis (LSE: VER.L - news) (VER) 81.00p -2.99% Psion (LSE: PON.L - news) (PON) 114.00p -2.98% Phytopharm (PYM) 16.75p -2.90%