Financial sector-focused software developer Rolfe & Nolan sparked up 28 per cent to 73.5p on the day – within a penny of its six-month high – as it confirmed rumours of a possible takeover bid. Elliott Davis reports.

TechMARK-listed Nolan, whose recent interim figures to August show a £77,000 pre-tax profit (£680,000) and debts almost halved to £1.7 million, says 'it has received an approach that may or may not lead to an offer being made for the company'.

Negotiations with the as yet unnamed suitor are said to be at an early stage. All management will say at the moment therefore is that it will keep investors informed of any further developments.

Prior to last week's results house broker Credit Lyonnais had been forecasting a £2.1 million full-year profit and earnings of 9.6p a share. That suggest any bid is likely to be at an even higher level than the price reached today.

Intriguingly, Credit Lyonnais has since adjusted its forecasts, but says it is unable to reveal its current expectations due to the bid situation.

Rolfe & Nolan is valued at £11.2 million.