Still tough going for tech stars

TECHNOLOGY shares have doubled on average in six months but several middle-ranking tech groups are finding that demand growth remains thin.

Supply chain software firm Kewill Systems returned to the black in the first half, thanks to cost cutting and a focus on higher value contracts. Profits were £0.5m pre-tax, up from £5.7m losses a year ago.

Sales rose just 2% and chairman Andrew Roberts warned that conditions remain 'challenging'.

Systems integrator Morse said enquiries from banks and insurers have picked up but it is too soon to confirm a 'sustained improvement'. Rival Compel said market conditions are merely 'stable'.

Minorplanet Systems restructured and dumped overseas distractions in the year to August. Write-offs raised pre-tax losses 123% to £52m but in remaining operations they fell 76% to £1.6m. Core sales jumped 27%.