Wednesday 17 July 2019

Datalex down 1pc after probe report

Shares in travel software provider Datalex were down around 1pc in afternoon trading, after a report that the Central Bank was investigating the company. Stock image
Shares in travel software provider Datalex were down around 1pc in afternoon trading, after a report that the Central Bank was investigating the company. Stock image

Shares in travel software provider Datalex were down around 1pc in afternoon trading, after a report that the Central Bank was investigating the company.

Datalex last month said its results for the first half of last year may have been mis-stated due to "accelerated recognition of revenue" from work it did for a customer.

It said there was a revenue shortfall from that piece of work, in a statement that sent the shares plunging. In November it had said 2018 trading performance had been in line with expectations, and that it was confident of double-digit growth in earnings before interest, tax, depreciation and amortisation (ebitda) for 2018.

Neither the company nor the Central Bank would comment yesterday.

Darren McKinley, senior equity analyst at Cantor Fitzgerald Ireland, said the report would have been concerning for shareholders but that ultimately no repercussions may arise for the company. "From an investor point of view it just needs to be got to the bottom of fairly quickly ... I don't see any immediate upside while this investigation is ongoing," Mr McKinley said.

Elsewhere in Dublin the Iseq index of Irish shares was up just under 0.8pc approaching the close. CRH was among the gainers, rising 2.37pc as news emerged that Europe's largest activist investor had taken a stake in the business.

US stocks turned lower in morning trading as investors weighed earnings against persistent concerns over trade and another government shutdown. The dollar extended its rally to a fifth day.

The S&P 500 headed for a second straight slump after reaching a two-month high, with President Donald Trump's speech to Congress doing little to remove trade and shutdown concerns. Among earnings-related moves, General Motors rose after topping profit estimates, while Snap soared as its user base stabilised.

Investors remained on edge with the deadline for Congress to reach a deal on keeping the US government open fast approaching with little sign of compromise.

There are also looming meetings next week between US and Chinese trade representatives.

Additional reporting Bloomberg

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