Independent internet service provider Pipex, whose customers include Tesco, reported last week that sales in 2005 were in line with analysts' expectations. Revenue increased 30% for the year, and the gross margin for the year was over 45%.

Pipex, which bought Freedom to Surf in October, is trying to cut costs by selling more services through its websites. The company has signed up more broadband customers, with the division adding 47% more clients to take its total to 283,000 at the end of 2005.

Between that number of broadband subscribers and being a potential takeover target, Pipex shares are a buy.

Monsoon SELL

Monsoon, the owner of the Monsoon and Accessorize fashion chains, reported last week that firsthalf profit had dropped. Net income for the six months ended 26 November fell to £17.5m, or 9.86p a share, from £18.8m, or 10.48p, a year earlier.

The London-based company underestimated the extent of the fall in consumer spending in the UK and was left with significant inventory.

Monsoon in April bought 47 stores from UK retailer Etam for £43m, but Nick Bubb, an analyst at Evolution Securities in London, said the company may have expanded too quickly. With the stock having gained 16% since 21 July, the shares are a sell.