nCipher shares plummet

Cambridge-based security software vendor nCipher has seen its shares collapse today despite reporting a sharp growth in turnover and profit.

nCipher's LSE-listed shares closed 145p down - a whopping 47.65 per cent - on an opening figure of 282p. Even though nCipher saw losses widen from £900,000 in 1999 to £1.9m in 2000 it managed to creep into profit for its fourth quarter - recording £43,000 despite third quarter losses of £541,000. Turnover also increased 188 per cent on the same period last year. In October 2000 nCipher raised £100m from its IPO. A spokeswoman for the company warned of "softened growth prospects for 2001" and blamed the troubles on the US slowdown and worldwide lengthening of sale cycles.