Does this IPO mark the end of the recession?

The flotation of UK CRM firm Detica could mark the beginning of an upturn in the technology market, according to one senior analyst.

Detica stock will sell for between 440p and 510p per ordinary share - valuing the company at around £100m upon its flotation on the London Stock Exchange at the end of this month.

Adrian Cannon, global software research analyst at Barclays Stockbrokers, said Detica's IPO is going to be the first of a steady stream of small company flotations.

Cannon believes the appetite for IPOs is building but only companies such as Detica with a fairly safe trade and the possibility of steady growth in the future will be able to float successfully.

He said: "The flotation of low risk, fairly secure companies could be the start of the market recovering but it could be another year before we see any major business floats& Detica has a secure customer base selling to the government national security market which is something people are looking for.

"Also the company isn't going for a major amount of money because this isn't a large float. This makes it tempting for investors wishing to dip their toes back into the market," he added.

Revenues at the company for the year ending 31 March 2002 are estimated to be up 26 per cent from the previous year at £32.8m from £26.6m.

Detica focused on the national security market, providing military intelligence software and services, between 1977 and 1995.

In 1995 Detica changed its business to CRM mainly within the government sector which now comprises around 60 per cent of its revenues.