SurfControl seeks deal on charges

INTERNET security group SurfControl is seeking the agreement of its accountant KPMG for a deal that will leave it free of goodwill charges by the end of its financial year this June.

Chief executive Steve Purdham said the group, which has a policy of amortising goodwill over just two years, was currently expected to start its new financial year carrying about $2m (£1.36m) of goodwill but was now looking to write it all down by the end of June.

After paying up to $100m for acquisitions such as CyberPatrol at the height of the technology boom, goodwill charges are disfiguring the group's accounts.

Although the group's core earnings were $255,000 in the quarter to 31 March and it expects to be fully profitable by the first quarter of next year, goodwill charges pushed net losses to $15.3m for its third quarter. That is 9.5% less than the same period last year, on sales up 6% to $14.1m.

SurfControl shares advanced 40p to 582 1/2p.