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Kofax plots London exit

Kofax plans to remove its shares from the LSE and only retain its Nasdaq listing
November 4, 2014

Dual-listed Kofax (KFX), whose software enables clients to process mortgage applications and other dense documents, intends to drop its London listing in March as almost four-fifths of its shareholders are US-based.

IC TIP: Sell at 390p

The move comes as Kofax continues its bruising shift towards mobile and 'smart' applications. Contract delays meant its adjusted cash profits slumped 48 per cent to $4.3m (£2.7m) in its first quarter, ended September 30.

On the bright side, Kofax acquired e-signature specialist Softpro GmbH. That drove a four-fifths rise in software licence sales of its newer products, which account for about 35 per cent of its total software licence revenue.

Broker Jefferies forecasts adjusted pre-tax profit of $33.8m, giving EPS of 31¢.