Punters lose out as iSoft slumps

THERE must be some angry iSoft shareholders out there. Those who didn't follow the lead of five board directors and a founder who sold stock worth £44m only three weeks ago must really be kicking themselves.

The shares are now trading an 'uncomfortable' 75p below the price directors received after succumbing to renewed selling pressure. Down 23 1/4p on Friday, they slumped to 341p before closing 41p down at 350p. June's peak was 446p.

Confirmation on Friday of Mark Woodbridge's suspension from his duties as business development director rang alarm bells even though iSoft said there will be no financial implications.

Dealers were reaching for the Mogadon tablets yesterday after The Guardian reported that the healthcare software group is facing parliamentary scrutiny over its accounting policies,

Attempts by iSoft to allay fears by stating 'there are no issues with its accounting policies, nor with its financial viability and that questions on its accounting statement were based on confidential information taken out of context,' failed miserably. Selling continued.

But the price attained by small investors was a lot lower than that recently trousered by the five directors led by founder and chairman Patrick Cryne and technology head Steve Graham. They sold 3m shares apiece at 425p.

Wolfson Microelectronics was another notable casualty, plummeting 38 1/2p to 212 1/2p. The semi-conductor group's warning that the growth rate in sales within its consumer audio product sector may be less than previously estimated due to uncertainty in demand from Chinese manufacturers did the damage. Good interim results were totally ignored.

Software group Royalblue shed 18 1/2 to 456 1/2p after niche broker Corporate Synergy moved to reduce following uninspiring interim results.

Analyst Luke Ahern downgraded his full-year pre-tax profit forecast to £8.5m from £9.5m and to £10m from £13m for next year.

Ahern expects a cautious interim statement from Reuters chief executive Tom Glocer today, and advised investors to sell. The close was 4 1/2p down at 323p.

The friendless Footsie fell 39.3 points to a year's low of 4287.0, closing below 4300 for the first time this year.

Mortgage bank Abbey National, 23p down at 557p, was the biggest casualty following disappointment with Spanish bank Santander's recommended bid terms.

Aim-quoted Virtue Broadcasting gained 1/4p to 4 1/2p following the £18.1m reverse takeover of World Television.

Avanti Screenmedia, a leading provider of retail TV services, eased 2p to 116 1/2p after winning two pub contracts.

Placed on Aim at 12p by broker WH Ireland, Zambian copper and gold explorer Zambezi Resources touched 15p and closed at 14 1/4p a premium of 2 1/4p.

Kitchen company Smallbone closed 1/2p above its placing price at 59 1/2p.