The shares of software manufacturer Rapid Technology Group soared by 89 per cent (from 90 cents to €1.70) yesterday. This followed a statement by the group saying it hoped to finalise a procurement deal in co-operation with IBM for a product to be used at store check-outs. The shares are at a record high.

The value of the holding of Mr Patrick McDonagh, a non-executive director, is €10.7 million (£8.4 million) - up from €5.7 million. Executive director Mr Roger Bannon has a holding valued at €4 million, while fellow executive director Mr James Barry has a holding valued at €4.2 million.

Announcing an increase in pre-tax losses to £2,095,755 (€2,661,060) in the year to June 30th, 1999, from £1,567,787 in 1998, the company said it had been developing the product this year with one of the world's largest retailers. A company spokesman would not identify the retailer but said it was a major international company in the US. Rapid will have to raise funds to finance working capital for the project. This will be a mixture of cash and bank loans but will not be quantified until the size of the project is known.

The latest results show a rise in sales to £242,677 from £205,478. However, net operating expenses rose to £2,271,260 from £1,603,085. The company said this reflected the development of the new distributorship. Resources also were applied to establishing manufacturing facilities which, the group said, had reduced costs and extended its volume manufacturing capabilities.

Rapid is in a strong financial position with cash of £376,434 and unutilised bank facilities of £500,000.