Shaky start for Detica

DETICA will be an important litmus test for the hi-tech and new issues markets when it floats next week.

The information technology consultancy is the first of its kind to list in 18 months and the first hi-tech company to chance a flotation on the main market since software supplier Marlborough Stirling a year ago.

But no one can accuse it of offering pie in the sky. Detica has been profitable since it was founded in 1977 and boasts a solid workload in Government agencies, including HM Customs and the Ministry of Defence.

Sales have risen 25% compound over the past three years and profits for the year to March are estimated at £5.9m against £4.7m for the previous 12 months.

However, Detica suffered a setback today when it was forced to cut its expected offer price to 400p, valuing the company at £88m rather than the expected £102m.