TechMARK movers: Computercenter exits box shifting

27th Oct 2009 15:42

Computacenter has sold its trade distribution division to Ingram Micro. This prompted Panmure Gordon to upgrade Computacenter from a hold to a buy. The computer services business has completely withdrawn from trade distribution, which is effectively a box shifting business. This is a low margin operation. This business generated revenues of around £80m a year but the disposal should not have a significant impact on group profits in 2009 and 2010. Unwinding the working capital, along with the sale proceeds, should generate £20m of cash over the next few months. The business is a strong cash generator and net debt, including customer-specific financing, has fallen from £89m to £4m over the 12 months to September 2009. A full year trading update is expected on 12 January. GlaxoSmithKline shares rose on the back of the US Food and Drug Administration's approval of leukemia treatment, Arzerra. GSK has developed the drug jointly with Danish company Genmab. Arzerra benefitted from the FDA's accelerated approval mechanism because it will be used for patients with unmet drug needs. Further studies of the drug are required. There does appear to be an increased risk of infection from using Arzerra. The drug will be used on patients with chronic lymphocytic leukemia who have not responded to other treatments. GSK is due to report third quarter figures tomorrow. Charles Stanley is forecasting group revenue of £6.75bn, up from £5.88bn in the third quarter of last year.FTSE TechMARK - RisersDialight (DIA) 200.50p +7.80%Emblaze (BLZ) 50.00p +6.38%Computacenter (CCC) 308.10p +4.09%QinetiQ Group (QQ.) 144.10p +3.22%GlaxoSmithKline (GSK) 1,267.50p +3.05%Consort Medical (CSRT) 410.00p +2.50%Kofax (KFX) 174.00p +2.35%Innovation Group (TIG) 12.00p +2.13%Cable & Wireless (CW.) 148.60p +2.06%Smith & Nephew (SN.) 546.50p +2.05%FTSE TechMARK - FallersPhytopharm (PYM) 15.25p -6.15%KCOM Group (KCOM) 40.50p -5.81%Corin Group (CRG) 74.00p -5.43%Sinclair Pharma (SPH) 39.25p -5.42%E2V Technologies (E2V) 71.00p -5.33%Oxford Instruments (OXIG) 212.00p -4.93%Alphameric (ALM) 31.75p -3.79%Fidessa (FDSA) 1,284.00p -3.46%Anite Group (AIE) 35.00p -3.45%NXT (NTX) 15.75p -3.08%