Business Weekly - Cambridge, UK

Herts ICT supplier, Northgate Information Solutions has reported a four per cent boost in pre-tax profits, on the back of a six per cent gain in revenues for the year to April.

The software provider, which paid £19.5m for a majority share in a Belgian rival in May, also announced a £27m contract to provide ICT services to Leicester Building Schools for the next five years.

The firm posted pre-tax gains of four per cent, up to £31.9m from £30.6m, and turnover of £351.7m, up six per cent from £332.7m last year.

The firm said that organic growth for the first half of the year rested at just 1.7 per cent, but this shot up to eight per cent in the second half, creating an average of almost five per cent for the annum.

The firm said it hopes to obtain the remaining 40 per cent of Belgian firm, ARINSO's shares later this year, in a bid thought to be valued at £257m.

"Disappointing" UK trading has left IT services and hardware reseller, Computacenter with inline profits for the first half, shaving almost five per cent from its share price.

Price erosion in the domestic services arm and sub-2006 trading levels for the product unit caused a downturn in its UK results, which were partially offset by stronger performances in France and Germany, the firm said.

The share price lost almost five per cent, dropping 11p to 229p.