Bell Group rings up 37% rise

By THIS IS MONEY
Updated: 18:00 EST, 27 March 2000

Bell Group, provider of network security mainly for banks, reported a 37% rise in profit, but its shares dropped sharply as the stock surrendered pre-result gains.

The recently floated company posted a pre-tax profit of five million pounds for the year ended December 31, up from £3.7m the year before. It also announced a total dividend of 2p.

But the stock fell 58 1/2 pence or 15% to 330p by 9.55am, retreating from an earlier gain. One dealer noted the stock had enjoyed a strong run ahead of the results, having gained 35% to 388- 1/2p since early February.

The multi-billion pound bid by Royal Bank of Scotland for NatWest had affected the group's business, but it said it expected opportunities to arise once the enlarged bank finalised its security strategy.

Bell also announced the purchase of two French companies, Societe de Distribution Techniques Avancees d'Alarme SA and Building Control System Sarl, for a total of £2.3m.

Bell, which already has operations in Sweden and Italy, said the purchases were in line with its strategy of growth in continental Europe.

The company, which floated on the London Stock Exchange in May 1999, made acquisitions in the UK and Australia last year and said it would make a foray into e-commerce with a further acquisition this year.

'1999 was an outstanding year for Bell. In addition to the successful execution of our flotation, operationally we achieved our projected performance,' Chief Executive Pat Curran said in a statement. © Reuters