Companies: AIE    ARE    OPN   

Altium’s latest research communiqué instructs investors in £76.4 million public sector software group IBS OPENSystems to pare back holdings, with the broker downgrading its stance (from hold) after recent interim figures revealed ‘anaemic sales growth once again’ due to a ‘soft demand environment in revenues and benefits’. Chief executive Malcolm Carter’s earlier-than-planned retirement has added fears that the search for a replacement could cause ‘some disruption in trading’ at the AIM-quoted business.

The going’s good at Arena
Although forecasts from racecourse owner Arena Leisure were reined in following a flooding-induced profit warning, Altium’s head of research, Greg Feehely, has upgraded the shares to buy on the ‘great strides’ the company has recently made. Developments at the group’s sites will unlock further upside from Arena’s ‘extensive asset base’ in the future, says Feehely, who views the news that Wolverhampton Council has consented to a new development as ‘significant’.

Having produced better-than-expected preliminary results, IT solutions provider Anite has received a recommendation upgrade, from hold to add. Public sector contracts in the second half of the year provided a great boon to the business, and the disposal of the group’s last remaining German business for a ‘highly respectable’ multiple – 11 times earnings – produced ‘palpable relief’. Now, says Altium, with revenue growth ‘set to accelerate’, management can concentrate on the market-leading travel reservation and telecoms-testing businesses.