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Microgen - Positions itself as a nexus for further consolidation in the sector

January 2004

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Following its takeover of MMT, Microgen has issued a pre-close trading update for the year ending 31 December. This said that those results will now be "materially ahead" of current market forecasts due to a substantial one-off payment by a large customer of the hosted document database business.  Microgen also  provided an update on the integration of MMT after the offer became unconditional last month. It highlighted a number of moves which will (i) further reduce its central overheads (ii) remove various duplicated costs such as finance, HR, payroll and IT infrastructure support; and (iii) centralise the helpdesk facility to a single support capability.  The restructuring actions are well advance ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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