Dear Editor,

Have you any update as to what is happening to Outsourcery (OUT:AIM).

Your feedback would be appreciated.

Jean Black (new subscriber), via email

Steven Frazer replies: Outsourcery’s latest announcement to the stockmarket was on 3 June concerning a new contract win. Chief executive officer Piers Linney commented: ‘We are starting to see tangible returns from the investments made in our platform, as the activation of new partners and customers is key for us to generate material recurring revenue for this year and beyond.’ Sadly that hasn’t captured the market attention, possibly because there’s negative sentiment towards the broader sector.

It’s still early days for the converged IT and communications platform supplier and shares in these sorts of companies are being given short shrift by the market right now, as illustrated by Outsourcery’s disappointing share price chart. Investors are nervous about whether technology companies, particularly junior ones, are able to deliver the earnings uplift implied by analyst forecasts - or even bullish guidance from the companies themselves - because there’s been several examples of popular stocks disappointing the market this year with lower than expected revenue.

In the case of Outsourcery, we’ve looked at the stock several times this year and will continue to follow the story closely. For more details on the opportunities and challenges, please see our Griller interview with Piers Linney (27 Mar) and updated views in an Agenda story published 15 May. As a subscriber, you will be able to access both these stories for free via our website.