STOCKS NEWS UK SMALL-Innovation up on share raising plan

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09:25 GMT 14-05-2009-Innovation up on share raising plan

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Innovation Group (TIG.L) shares rise as much as 14 percent after the software firm says it plans to raise about 5 million pounds in a share placing to further improve its capital base.

Altium Securities analyst Jonathan Imlah says: "We have been arguing for some time that Innovation was likely to require strengthening of its balance sheet and therefore welcome today's announcement."

Imlah says a week ago at the time of its results that Innovation insisted it did not require any further injection of cash. "What baffles us is the apparent volte face in management's view," he says.

To see Innovation Group's statement please click on [ID:nRnsN2322S]

Reuters messaging rm://purwa.naveen.reuters.com@reuters.net

08:31GMT 14May2009-SQS Software down on profit fall f'cast

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Shares of SQS Software Quality Systems (SQS.L) hit a lifetime low, down 30 percent after the software-testing company forecasts first-half adjusted pretax profit halving.