- Darktrace CEO buys £120,000 worth of shares
- Buying follows collapse of takeover talks with Thoma Bravo
- Litigation Capital Management CEO and chair snap up combined £600,000 worth of shares
The chief executive of cybersecurity tech business Darktrace (DARK) Poppy Gustafsson has snapped up £120,000 worth of shares in the company.
This represents a show of faith in the business after the big plunge in the share price which followed the collapse of takeover talks with US private equity firm Thoma Bravo (8 September).
Gustafsson acquired 37,572 shares at 320.5p on 26 September. The shares have subsequently fallen a little further to 311p.
Commenting on the company's most recent set of results for the 12 months to 30 June 2022, which came the same day as Thoma Bravo walked away, Berenberg said: 'Darktrace has delivered a very strong set of results today with double-digit percentage beats to earnings and free cash flow. This in our view shows the maturing of the company’s operating model.'
The company added more than 500 clients in the fourth quarter bringing its full-year total to over 7,400, up 32%. It is also improving its ARR (annual recurring revenue) retention rate, from 103.1% to 105.5%. Its biggest market in the US was up 34% to $143 million, albeit with a $3.8 million revenue recognition adjustment.
Darktrace is likely to release an update on first quarter trading next month.
BIG PURCHASE AT LITIGATION FINANCING FIRM
The chair of international dispute financing outfit Litigation Capital Management (LIT:AIM) Jonathan Moulds acquired £559,020 worth of shares in the business on 23 September.
Moulds acquired 770,000 shares at 72.6p taking his total holding in the company to 3,100,000 shares or 2.6% of the issued share capital. His colleague, chief executive Patrick Moloney followed suit on 26 September, buying 76,750 shares at 73.57p taking his total holding to 10,280,008 shares (8.6%).
These purchases followed a mixed market reaction to the company's results for the 12 months to 30 June posted on 20 September.
Litigation Capital, which helps finance third parties attempts to pursue and recover funds from legal claims, had issued a profit warning in the summer thanks to Covid-related delays and disruption in the justice system.
The results showed adjusted operating profit up 23% to A$20.2 million on revenue which was 28% higher to $47.3 million.
