Text-messaging teenagers and a healthy IT business have helped bolster first-half profit figures for the Anglo-Dutch technology group CMG.

The company's shares then soared almost 20% by lunch time after ABN Amro responded by upgrading the stock to "buy" from "hold".

"CMG reported results which were significantly ahead of our and market expectations," said ABN Amro technology analyst Mark Bryant.

Analysts had expected first-half profits to fall to �13m ($19m; 21m euros) from more than �50m a year earlier.

Instead, pre-tax profits held up better than expected at �17.9m.

"We had expected the worse and it was better than we hoped for, both in terms of the numbers for the first half and more importantly the outlook for the second half," said ING's Andrew Marsh.

Pleasant surprise

CMG's core IT services market, which accounts for 87% of the company's business, held up well during the first half of this year.

The company predicts that the market will grow by 6-8% for the year as a whole, rising to 12% next year.

"The worst in the IT services market is behind us," said CMG Netherlands director Wout Koppers.

The remaining 13% of its business, wireless data solutions, benefited from the increasing popularity of text messaging.

"SMS volumes are growing and our revenues are returning in Europe, while at the same time we are aggressively seizing new opportunities in developing markets around the world," said chairman Cor Stutterheim.

Soaring shares

CMG's shares, which have dived from 1,760p a year ago, tumbled on Tuesday as traders appeared convinced that the first-half results would be poor.

Following the release of the figures, the stock soared.

At 1130 GMT, the stock was trading 18.74%, or 40p, higher at 253.5p.