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Kofax (KFX), the provider of document driven business process automation solutions, is to acquire Atalasoft, a leading developer and marketer of imaging software development toolkits, for a maximum value of 9.7 million pounds (6.0 million pounds). "The acquisition...will add to Kofax's product portfolio with unique capabilities for portal and internet browser based applications, strengthen the company's competitive position and increase its addressable market," the group said. Shares in Kofax, which delivers its solutions in more than 60 countries throughout the Americas, EMEA and Asia, decreased 5.6p to 473.4p.

Mitchells & Butlers (MAB) warned of challenges ahead in respect of input cost inflation and uncertainty around UK discretionary consumer spending, as the pub operator posted narrowed adjusted pre-tax profits for the half-year. The group reported an adjusted pre-tax profit of 63 million pounds for the 6-months ended 9th April 2011, down from 73 million pounds a year earlier, as revenue fell 8.8% to 946 million pounds. Shares in M&B, whose brands include Toby Carvery, Vintage Inns and Harvester, dropped 17.4p to 319p

http://www.investegate.co.uk/Article.aspx?id=201105190700088655G

Evolution Securities issued a "buy" rating for Booker Group (BOK) with a 80p target price. Following full-year results, the broker said the cash and carry operator offers outstanding long term growth given the strategic and competitive advantages over most of its competition and very healthy cash generation. Evolution added that the business is not widely covered or understood but, nevertheless, believes it will become a FTSE100 company. Shares in Booker, which last October acquired Ritter-Courivaud and Classic Drinks, gained 2.55p to 70.25p.

Charles Stanley initiated coverage of Wynnstay (WYN), the animal feed manufacturer, with an "add" recommendation and 376p target price. While noting the acquisition of Wrekin Grain and record revenue and profit growth for financial year 2010, the broker believes the group stands to benefit from positive trends in the agriculture sector. With that said, Charles Stanley is forecasting for the financial year 2011 a pre-tax profit of 6.9 million pounds, earnings per share of 29.76p and dividend of 7.3p. Wynnstay shares were flat at 356.5p.

http://www.investegate.co.uk/Article.aspx?id=201105200715039684G

http://www.investegate.co.uk/Article.aspx?id=201105200715039683G

http://www.investegate.co.uk/Article.aspx?id=201105200700119682G

SSE trumpets its dividend growth Date: Friday 20 May 2011 LONDON (ShareCast) - The legion of income investors holding Scottish and Southern Energy (SSE) shares were kept happy as the utility company bumped up the dividend a bit more than anticipated on the back of better than expected results. The full year dividend has been hiked 7.1% to 75p from 70p last year, a shade above market expectations of a 74.8p pay-out. "SSE's key financial objective is to deliver above-inflation increases in the dividend every year, and this has again been achieved. SSE is one of just six FTSE 100 companies to have delivered real dividend growth every year since 1999, when the company paid its first dividend," trumpeted Lord Smith of Kelvin, the chairman of SSE. Adjusted profit before tax in the year to March 31st rose 1.6% to £1,310m from £1,290m the year before, topping the market consensus forecast of £1.24bn. Adjusted earnings per share edged up 1.9% to 112.3p from 110.2p a year earlier. Investment and capital expenditure over the year was 9.8% higher at £1,444m, compared to £1,315m the year before. SSE's adjusted net debt and hybrid capital was £5.891bn at 31 March 2011, compared with £5.292bn at 31 March 2010. Power station availability took a dive, however, with the availability rate for the gas stations dropping to 88% from 94% while the coal-fired stations saw availability slide to 84% from 92%. Customer minutes lost for the Scottish Hydro Electric Power Distribution (SHEPD) business rose from 74 minutes last year to 78, while for the Southern Electric Power Division (SEPD) arm it improved to 64 minutes from 65 the year before. In separate announcements, the company announced a couple of acquisitions. Wind Towers, the joint venture between SSE and Marsh Wind Technology Ltd, the UK subsidiary of Marsh Global Holdings, has completed the purchase of the Skykon wind turbine tower manufacturing and assembly plant at Machrihanish, Campbeltown, from its administrators. SSE has also reached agreement on the acquisition of a wind farm close to SSE's existing Keadby power station in North Lincolnshire, from Renewable Energy Systems Group.

Evaluation For the current year a pre-tax profit of GBP1.3 million is anticipated, meaning GBP0.96 million post-tax on a 26% tax rate. A 10.5p per share dividend equates to a GBP0.595 million payout, meaning there should be significant ‘free cash’ generated. In recent years much of this has been invested in the development of FileFinder 10 - which Dillistone sees as providing it with a platform for the next 10 years. Thus whilst investment in the company’s offering will continue going forward in order to underpin further organic growth, much of the previously needed investment now looks set to be realised. The cash generation, net cash position and enhanced software platform (bringing the company’s underlying technology into line with other companies') offer the potential of scaleable, earnings-enhancing acquisitions (the company has stated it is “actively pursuing an acquisition strategy”) and we also believe there is scope for organic outperformance. Dillistone notes “it is important for the reputation of the company that we manage the roll out of the product (FileFinder 10) cautiously. Our budget for the first half of the year reflects this... we expect revenues to increase more strongly once clients and potential clients have had the opportunity to see the benefits of the new product”. The true benefits of the company's investment in FileFinder 10 are however unlikely to be seen until 2012 and beyond but even given this and ignoring potential augmentations to current year earnings forecasts, ex the stated GBP2.15 million (almost 38p per share) of net cash, the shares trade on a p/e of around 9.8x. There is then the dividend yield – which in the current low interest, high inflation, environment looks particularly appealing. The prospective share issue will hopefully help liquidity and, as a growth and income play, the shares are a buy. Buy Dillistone Group (DSG) at 205p Say the experts at UKMicrocap.com

Banking drives Close Brothers growth Date: Thursday 19 May 2011 Close Brothers is on course to meet full year expectations after a strong start to 2011 by its banking and securities divisions. The banking division has seen a 4% increase in the loan book to £3.3bn at the end of April from £3.2bn at the end of January. The net interest margin has remained strong and the bad debt ratio has reduced slightly, in line with the group's previously stated expectations. The third quarter (January to March) of the group’s financial year was a sound one for the securities division, though April was a quieter month. Average bargains per day at the Winterflood brokerage unit have been broadly in line with the first half of the financial year, although income per bargain was modestly lower. Close Brothers Seydler has been resilient in the period reflecting good volumes in the German market although this was offset by a subdued performance for Mako, the group said. Funds under Management (FuM) in the asset management unit have remained broadly unchanged at £8.2bn relative to the position at 31 January 2011, principally reflecting the acquisition of Allenbridge Group, with £440m client assets offset by the sale of £554m of FuM related to the property funds management business. Broker Singer Capital Markets noted the sound performance of the banking division and opined: “Provided the management execute a turn around in the asset management segment into a more profitable division the shares trading on 9.7x July 2012 consensus estimates look very cheap.” According to Singer, “given the historic multiple of Close Brothers is closer to 12x, the shares, if management deliver, could be worth closer to £10.”

Panmure Gordon upgraded Regus to a buy with a new price target of 132p.

Prudential chairman's re-election opposed by 20% Date: Thursday 19 May 2011 LONDON (ShareCast) - More than 20% of shareholder votes went against the re-election of Harvey McGrath as chairman of the insurance giant Prudential at its annual meeting amid lingering resentment over its failed attempt to buy US insurance giant AIG’s Asian assets. His re-election was backed by 1,362,173,221 votes and opposed by 383,658,368, with 115,292,696 abstaining. Earlier this month, the Pru reported that strong growth in Asia and the US helped the insurance giant Prudential shrug off a more sluggish performance in the UK to continue growing strongly in the first quarter of 2011. But the company’s failed attempt to buy the Asian business of US firm AIG Asia last year cost the company hundreds of millions of pounds. At the time it was mostly chief executive Tidjane Thiam who was in the firing line, but he was re-elected by more than 99% of the vote today. Nevertheless McGrath is quoted as saying after the vote that, “Getting the support of 80% of the shareholders is a pretty good mandate and we will take it forward on that basis.”

News Gasol (GAS) entered into an exclusive project option agreement with Moni Pulo in respect of all the gas in an licence area on the coast of South East Nigeria pushed the African-focused gas company's shares up 0.125p to 1.35p. The company said that during the exclusivity period, it will have an opportunity to make a proposal to Moni Pulo regarding the development of OML 114.

Pity indeed cinders!

Shares in Medicsight (MDST) rocketed by 3.125p to 6.5p after the developer of computer-aided detection and medical image analysis software received clearance from the US Food and Drug Administration for Medicsight ColonCAD, a software designed to assist radiologists. The group said the clearance enables the implementation of its US sales and marketing strategy, a primary objective in the development of the business since flotation.

An improvement in operating profit, one off gains from discounts on company acquisitions and a favourable movement in the fair value of financial instruments have all led to a significant step up in interim pre-tax profits at Grainger (GRI). Pre-tax profits for the 6-months ended 31st March 2011 amounted to 65.2 million pounds, up from 3.5 million pounds on the comparable period a year earlier. Looking ahead, the property giant said it remains confident in the ability of its "well located, cash generative portfolio to outperform the market." Shares in Grainger, which directly owns 2.1 billion pounds of property assets and has 2.8 billion pounds of property assets under management, gained 4.5p to 128.2p.

http://www.investegate.co.uk/Article.aspx?id=201105190700168816G

Parseq (PSQ), which specialises in mobile and online banking software and technology-led outsourcing services, has been awarded a three year, multi-million pound contract to build, host and manage a mobile wallet service for a "major new entrant to the UK retail financial services market". This contract remains subject to strict confidentiality constraints but the customer is expected to make a public announcement shortly, the firm added. Shares in Parseq jumped 1.75p to 5.875p.

Revenues in the half-year ending 30th June 2011 are expected to be ahead of prior year at Styles & Wood Group (STY), the provider of property support services announced as trading conditions improved. The company added that the order book continues to improve and at 17th May was more than 10% ahead of twelve months ago with strong order intake in retail banking and support services. Shares in S&W rose 1.25p to 15.5p