TechMARK movers: Profit dip hits BTG share price

LONDON (ShareCast) - Shares in pharmaceuticals developer BTG fell even though it reported a sharp rise in revenues from £30.2m to £47.9m in the six months to September 2009, although the comparative figures do not include last year's acquisition Protherics. Pre-tax profits fell from £3.4m to £2.4m and this seems to have attracted more attention from investors. The profit figure was struck after £7.1m of foreign exchange losses, compared with a £400,000 gain last time.

There is cash in the bank of £79.2m and net cash of £77.5m.

Analysts' reaction to the figures is far more positive than the fall in the share price suggests. KBC Peel Hunt says "BTG is fast becoming a sustainably profitable speciality pharma company". It also believes that BTG is in a strong position to grow in the US. The broker has set a target price of 240p a share.

KBC Peel Hunt believes that BTG can cut more of its costs and is on course for annual profits of around £20m from 2010-11.

FinnCap is also positive about BTG but it is disappointed by the lack of clarity on the Varisolve strategy. Varicose veins treatment Varisolve is progressing towards phase III trials in the US. BTG says that it is exploring commercial options for the drug.

Insurance outsourcing services provider Innovation Group was boosted by news that Legal & General has taken its stake from around 3% to 5.1%. Last month, Innovation won a £3.6m, three year contract with a UK friendly society.

FTSE TechMARK - Risers Phytopharm (PYM) 18.50p +19.35% Innovation Group (TIG) 12.00p +6.67% ProStrakan (PSK) 110.50p +4.25% Ultra Electronics Holdings (ULE) 1,357.00p +3.67% SDL International (SDL) 433.75p +3.64% Meggitt (MGGT) 249.40p +3.40% GB Group (GBG) 21.25p +2.41% BATM Advanced (BVC) 53.00p +1.92% NXT (NTX) 16.25p +1.56% Skyepharma (SKP) 93.00p +1.09%

FTSE TechMARK - Fallers Cable & Wireless (CW.) 136.80p -7.57% BTG (BGC) 181.70p -5.85% Oxford Biomedica (OXB) 13.50p -5.26% Imagination Technologies (IMG) 214.90p -4.49% KCOM Group (KCOM) 40.75p -4.12% E2V Technologies (E2V) 71.00p -3.40% Psion (PON) 113.00p -3.00% Oxford Instruments (OXIG) 230.00p -2.54% Axis-Shield (ASD) 410.00p -2.15% Phoenix IT Group (PNX) 203.00p -2.05%