3i cuts stake in Morse

Venture capital firm 3i Group has cut its stake in integrator Morse, according to a report by Reuters.

The move, revealed in a regulatory filing, leaves 3i with a three per cent holding in the IT consultancy group, down from 15 per cent.

According to the Reuters article, 3i sold about 20.2 million shares in Morse for an undisclosed sum on 13 February.

Earlier this month, Morse posted lower than expected results for its first half financial year 2009.

Turnover for the six months ended 31 December stood at £114.4m, compared with £123.8m in the same period of 2008. The integrator also posted a loss of £17.3m for the period, compared with a profit of £6.4m in 2008.

In a statement at the time, Kevin Loosemore, executive chairman of Morse, said: “While we expected the market for IT services and technology to remain difficult, we did not fully anticipate the extent to which the credit crunch would impact businesses globally.

"However, we still anticipate that changes to Morse’s operating model and focus, together with its ongoing strong client relationships, will deliver improved underlying profitability and cash generation in the current year and into the future.”