BusinessCompany NewsAccountancy shares on the rebound

Accountancy shares on the rebound

The Accountancy Age/ADVFN index has rebounded slightly this week despite a massive drop in Logica's share price as Xansa pulled itself out of the red and most other stocks recovered.

It rose 0.26 points over the week, closing last Thursday at 71.26 points, rising for the first time in four weeks. Meanwhile, the FTSE-100 ended the week at 97.15 points, 0.94 points higher than the previous week’s close.

Logica fell a massive 20% over the week after it issued a profit warning and said it was making redundant 700 workers worldwide in its mobile networks and IT services operations. It announced last Friday that trading conditions had worsened and expected earnings per share before restructuring costs to be ‘significantly below last year.’ The computer services company added it would take a one-time restructuring cost of £34m.

Sage fell again this week, losing 4% on news that Microsoft is buying Navision, threatening the accountancy software specialist’s competitive position. Hays also continued to crumble after the resignation of executive director Keith Charlton, responsible for the company’s logistics and commercial arms.

On the upside, Xansa resurged after seven weeks in the red after house broker UBS Warburg upgraded its stance on the stock. Shares rose 8% on UBS’ increased recommendation to ‘strong buy’. ITNet was also up, rising 5% after it announced it had a good first-quarter and a strong order book.

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