Internet service provider and networking software specialist Unipalm Group Plc saw its shares dip 8% to 125p following fading market speculation that it would be acquired, managing director Peter Dawe said. Dawe announced that half yearly results to October 31 were as expected with group pre-tax profits at ú149,000 on turnover of ú7.8m. In terms of a group spilt, Unipalm’s core software distribution business saw pre-tax profits of ú611,000 on turnover of ú6.5m, with Pipex, its Internet services division, making a loss of ú462,000 on turnover of ú1.3m. Unipalm has invested ú1.5m in Pipex since the company’s flotation last March. It expects that Pipex will move into the black by 2000. Dawe says the market demand for Internet connections continues to remain buoyant. At the time of flotation Pipex was winning ú100,000 of new business a month; this has now risen to ú390,000 and Dawe believes that it can achieve the target order level of ú600,000 per month set at the time of flotation, within two years. The company has signed two non-exclusive licensing agreements for its Internet electronic mail software Mail-IT in the past six months and plans to sign at least one more licence this year. It says that the market for this product has been spoilt by Microsoft Corp’s pre-announcement of its electronic mail facility within Windows95 as potential customers for Mail-IT will wait until Microsoft eventually delivers. Unipalm plans to open a office in the City of London next month which will supplement its Cambridge headquarters. The office will incorporate an Internet Shop as a demo facility for its products. Customers will be able to hook up to the Internet and check their electronic mail, and Unipalm will charge them for the privilege. The company plans to continue its organic expansion but may make a strategic investment in Oleane, a French Internet provider, in which it already has a 25% interest.
