Clarity Commerce Solutions, the customer relationship management software provider to the leisure trade, has just completed another acquisition and remains on the lookout for others. The group paid £1.8m for PacerCATS (PC), a supplier of ticket and seat management software to the cinema trade. PC's last results for the year to December showed that it made a small operating profit of $7,000 on sales of $6m. Net assets were calculated at $3m. Clarity met the asking price via existing cash resources, short-term bank loans and through raising £750,000 in a placing at 50p. The shares retreated 1p to 58.5p on the news, a level they have traded at for most of the year. At first glance, this may seem surprising, considering the company's recent full-year results showed a swing into profits of £382,000 against a (re-stated) loss last year of £841,000. However, while the profits were the result of Clarity selling higher margin software products, chairman Bob Morton explained that conditions were still very tough with clients taking longer to reach buying decisions. Morton nevertheless expects progress this year. Prior to this deal, the market was expecting profits of £400,000 on sales of £8 million for 2004. If it can seamlessly integrate PC and squeeze some cost savings out, profits could be substantially more. Buy.