UK SMALLCAP ROUNDUP: SDL Buys Translation Software Firm

15th Jul 2010 16:00

Dow Jones smallcap news is now on Twitter, allowing you to catch up on the news away from your desk. Go to http://twitter.com/DJ_UK_Smallcaps SDL PLC (SDL.LN), a translation services company, said it agreed to buy an automatic translation software company for $42.5 million, in a deal that will allow its customers to translate larger volumes of online content quicker. The translation market is worth about $15 billion a year, but only a tiny part--between $50 million and $100 million--currently uses automation technology, Chief Executive Mark Lancaster told Dow Jones Newswires. He expects that proportion to grow to 30% in the next three to five years, as human translators struggle to cope with the sheer volume of translation needed by multinational companies. At 1421 GMT, shares +18 pence, or 3.6%, at 521 pence. DATATEC LTD. (DTC.JO), an information technology company, said trading and profitability have continued to improve across all its divisions. "At a group level, it's steady as she goes," Chief Executive Jens Montanana told Dow Jones Newswires, adding that the company expects the "staggered recovery" to continue for the rest of the year, with certain markets recovering faster than others. At 1422 GMT, London-listed shares +11.5 pence, or 4%, at 296.5 pence. SUPERGROUP PLC (SGP.LN), a fashion retailer, predicted a continued surge in sales and profit despite the tough trading environment, which it said will be kick-started by the opening of its largest store to date next week. SuperGroup next week opens an 18,000 square feet store in Lakeside Shopping Centre, Essex, which will be its largest store to date and have a bigger weighting of womenswear than is typical for an average SuperDry shop. At 1422 GMT, shares +107 pence, or 13%, at 907 pence. ILIKA PLC (IKA.LN), a maker of materials for batteries, electronics and medical devices, said it is developing materials that should drive down the cost of fuel cells, adding it has a solid pipeline of deal opportunities coming through. At 1423 GMT, shares flat at 55.5 pence. SMITHS NEWS PLC (NWS.LN), a newspaper and magazine wholesaler, said it is exploring acquisition opportunities as it looks to diversify its revenue streams in the highly-competitive media market. Chief Executive Mark Cashmore said the company doesn't have any specific buying targets in mind at the moment but is conducting research, including with external partners, to explore acquisition opportunities. "It's difficult to put a time frame on it but it's highly possible we could make an acquisition in the fiscal 2011," he said. At 1423 GMT, shares +1.25 pence, or 1.1%, at 112.25 pence. MOTHERCARE PLC (MTC.LN), a retailer of parenting products, said it is considering selling its kids' toiletries range through a national concession, possibly in a supermarket. The firm sells own brand products like nappy cream, baby body wash and sleeptime massage lotion. At 1423 GMT, shares -21 pence, or 3.8%, at 531 pence. IQE PLC (IQE.LN), a semiconductor wafer company, said it expects its first-half results to be significantly ahead of market expectations due to stronger than expected sales of wireless products and increasing demand for optoelectronic and silicon-based wafers. At 1424 GMT, shares +2.5 pence, or 13%, at 21.75 pence. HAMWORTHY PLC (HMY.LN) said it has been awarded a GBP50 million contract from Brazilian shipyard Estaleio Promar S.A. to design and supply cargo handling systems for eight liquid petroleum gas carriers--its second Brazilian contract in the past month. At 1424 GMT, shares +18.25 pence, or 5.9%, at 325.25 pence. ASTAIRE GROUP PLC (ASTR.LN), a stockbroker, said it is mulling a share sale to end its majority ownership by Evolve Capital PLC (EVOL.LN) Astaire said it is in talks with a number of parties about a share subscription that would reduce Evolve's interest. Evolve currently owns about 54% of the company. Talks are at an early stage and shareholders will be told more in August, Astaire said. At 1424 GMT, shares flat at 1 pence. ELECTROCOMPONENTS PLC (ECM.LN), an electronics distributor, said revenue grew 24% on year during the first quarter of its fiscal year, driven by strong trading in North America and online. At 1425 GMT, shares -10.8 pence, or 4.6%, at 225.9 pence. DIMENSION DATA HOLDINGS PLC (DDT.JO), an IT services company, agreed a 120 pence a share takeover offer from Nippon Telegraph & Telephone Corp. (9432.TO), valuing it at GBP2.1 billion. At 1425 GMT, London-listed shares +20.1 pence, or 20%, at 112.7 pence. BOWLEVEN PLC (BLVN.LN), an oil and gas explorer, said it found deeper reservoirs of oil and gas condensate during drilling of an appraisal well at the Etinde permit, offshore Cameroon. At 1425 GMT, shares +10 pence, or 7.4%, at 146 pence. DJ UK Smaller Cos +0.1% AIM +0.2% By Rachael Gormley, Jason Douglas, Iain Packham, Tommy Stubbington & Hannah Benjamin, Dow Jones Newswires; +44 (0) 20 7842 9272; [email protected] (END) Dow Jones Newswires July 15, 2010 11:00 ET (15:00 GMT)