INTEC TELECOM SYSTEMS (ITL).

Investors Chronicle, August, 2005

Third-quarter results from Intec Telecom Systems showed revenues for the first nine months of 2004-05 had climbed 63 per cent to GBP76.5m, reflecting the contribution from Singl.eView, bought in August 2004. Reported losses widened because of the associated goodwill charge. But a 52 per cent rise in underlying profits to GBP5.8m suggests that integration is progressing well.

We recommended buying the shares at 73p (18 February 2005), and they have since fallen to 63p. But recent multi- million pound contract wins show that the company is moving up the value chain and, on a rating of 15 times forecast 2005-06 earnings, its shares are still a buy.