UPDATE 1-Patsystems H1 profit up, upbeat on outlook

(Reuters) – British software firm Patsystems Plc (PTS.L) posted a 37 percent rise in first-half adjusted pretax profit, helped by sales growth in Europe and Asia, and said it was confident of achieving its targets for 2010.

The AIM-listed company, which provides software for electronic trading and exchange systems, also raised its interim dividend by 38 percent to 0.2 pence.

“Our continued growth in emerging markets, a strong sales pipeline and this year’s deployment of our new global ASP (application provider service), XConnect, will support sustained growth in 2011 and beyond,” Chairman Richard Last said in a statement.

For the six months ended June 30, pretax profit before items rose to 1 million pounds from 752,000 pounds last year. Revenue grew 6 percent to 10 million pounds.

Patsystems shares closed at 24.25 pence on Monday on the London Stock Exchange. (Reporting by Tresa Sherin Morera in Bangalore; Editing by Vinu Pilakkott)

UPDATE 1-Kewill says eyeing acquisitions; still in offer talks

(Reuters) – British software firm Kewill Plc (KWL.L) said on Monday it was looking to expand geographically through acquisitions while still remaining in offer talks.

In May, the company received an approach that valued the software provider to freight forwarders, distribution firms and express parcel groups at 116.8 million pounds ($178.6 million). [ID:nSGE64D0DE]

Kewill said it traded in line with its own view since end-March and continued to get new customer contracts.

While the sales pipeline remained solid, the longer sales cycles were in line with the difficult economic environment, it added.

Shares in the company closed at 112.50 pence on Friday on the London Stock Exchange. ($1=.6541 Pound) (Reporting by Aditi Samajpati in Bangalore; Editing by Unnikrishnan Nair)

British Defence Ministry’s ‘disastrous’ 500mln pound Chinook chopper deal revealed

London, Aug 25(ANI): If reports are to be believed, the British Ministry of Defence (MoD) has made a ‘disastrous’ decision over tandem rotor helicopters Chinook Mk3′s, which are meant for complex operations.

In 1995, the ministry had agreed to buy eight Chinook Mk3s from Boeing for 259 million pounds, and wanted to fit its own software in place of the avionics software, which would have cost another 40 million pounds.

However, Boeing, the aircraft manufacturer, had warned that the British software might not be compatible with the helicopter.

The warning has come true as the 500 million pound choppers are stored in climate-controlled hangars as the ministry found that it could not design the software, and the failure to design proper avionics software means meant that the helicopters are incapable of flying in difficult conditions.

“The MoD and RAF said they wanted to fit their own avionics software. Boeing told them that they would have trouble integrating their software, but the MoD believed it could do it better than Boeing. The MoD found it couldn’t design the software for the Mk3s, as Boeing had warned,” The Times quoted Defence insiders, as saying.

“This was a disastrous procurement programme, which could have been resolved eight years ago.” a source added.

Now, without proper software, the helicopters would become active next year, but they will only be the basic version, not the high-tech models.

The MoD has continually claimed that officials negotiating the contract in 1995 had failed to ask for access to the software codes, and that Boeing refused to hand them over after the mistake was realised. (ANI)