Shares digital

ARC International (ARK) – Finals PTP: -£3.89m (-£2.72m) Divi: n/a (n/a)

A fourth acquisition in twelve months means chief executive Carl Schlachte continues to build for the future and analyst forecasts suggest the chip design expert could make its first annual profit since 2000’s flotation next year.

ARC has followed up last year’s purchase of Teja, Tenison and Alarity for a maximum of £6.6 million with a swoop for California-based Sonic Focus. The deal will enhance ARC’s customer base as well as its array of audio and video solutions for cutting-edge consumer electronics products.

A record order backlog also gives grounds for optimism, while underlying losses declined, even if last year’s trio of deals more than doubled the stated net deficit.

Shares in ARC rose 1% to 27.25p, just above their twelve-month lows.

Shares says: A £21.2 million cash pile supports the £41.6 million capitalisation but profits will be needed to drive the valuation higher.

by: Russ Mould