iSOFT firm on merger prospects

HEALTHCARE software group iSOFT remains confident its merger with rival Torex will be cleared by competition authorities, despite last week's surprise request by the appeals tribunal that regulators look at the matter again.

Finance director Tim Whiston said: 'The Office of Fair Trading has been through a detailed investigation and has confirmed there is no reduction in competition.'

He blamed a turf battle between the OFT and the Competition Commission. But the bigger issue is the battle for a slice of the work to upgrade NHS computer systems. iSOFT's programmes handle medical records for doctors and nurses.

Rival software companies, especially from overseas, have suggested there is too little competition in the market.

iSOFT is a subcontractor to five IT service companies chasing the NHS contracts in three of five English regions. It has already won a fourth, for the North West, in partnership with Accenture.

First-half profits at iSOFT rose 12% to £9.2m pre-tax, dividends 17% to 0.7p. The shares rose 4 1/2p to 317p, or 20 times likely earnings.