Digital Look

Small caps round-up: Kofax, Clarity Commerce, McKay Securities...

Date: Monday 08 Feb 2010

Scanning software specialist Kofax posted half-year results in line with expectations, helped by a 17% jump in sales at the key software business.

Revenue for the six months ended 31 December 2009 rose 9% to $168.3m (2008: $154.5m) as adjusted profit before tax came in at $9.4m.

“We continue to believe that Kofax remains well positioned to take advantage of an improving macro thanks to its efficiency driving solutions and the operational changes made by CEO Reynolds Bish,” says Piper Jaffray.

“We see upside to estimates due to stronger software growth and improving guidance - we retain our Overweight rating.”

Panmure Gordon called the results a “pleasant surprise”, which suggests the business might be turning a corner.

It said the numbers underpin its full-year expectations for revenue of £205.7m and adjusted EBITA of £14.6m, prompting it to upgrade the shares to ‘hold’ from ‘sell’ with price target raised to 182p from 140p.

Bookings system software provider Clarity Commerce Solutions is at its highest in over two months after doing a deal with an unnamed ‘multi-country restaurant operation with several hundred outlets’.

The contract, worth £2.6m over three years, sees Clarity provide its ClarityLive point of sale (POS) solution which will piloted in April and May for roll-out in November.

McKay Securities, the real estate investment trust focussed on commercial property in the South East, says quarterly rents remain resilient and it is in a strong financial position with funds for reinvestment.

In an update on trading since 30 September, managing director Simon Perkins said high quality assets in good locations mean its portfolio is well placed to benefit as occupier markets improve.

Greystar Resources, owner of the Angostura gold-silver deposit in northeastern Colombia, has received C$6.1m after IFC (International Finance Corporation) exercised 2.47m warrants at C$2.47 each.

The deal was linked to the company's financing completed with IFC (International Finance Corporation), a member of the World Bank Group, last March.