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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Detica - IT consultancy benefits from buoyant defence spend

February 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.

Over the month we met Tom Black, chief executive of Detica, which provides project-based IT Consulting and Systems Integration services to the Government and Commercial sectors.  Detica went public in April 2002, right in the middle of the indiscriminate sell off in the IT sector and  the shares, which floated at 392p, at one point freefell to 198p.  However, Detica has continued achieving consistent double digit profit growth largely thanks to its exposure toa renaissance in Government defence spending, stimulated by the war on terror. This, along with tentative signs of a pick-up on the commercialside, means Detica can look forward to some fat years ahead. AsBlack emphatically points out, Detica is not in t ...

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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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