31 July 2014

Ffastfill posts H1 pre-tax loss; agrees WTD Consulting acquisition

22 November 2011  |  3494 views  |  0 Parliament Big ben London

Ffastfill has posted a pre-tax loss of £107,000 for the first half on flat revenues of £7.3 million. The UK derivatives trading vendor has also agreed to buy the business and assets of Chicago-based WTD Consulting for up to £7.6 million.

For the six months to 30 September, Ffastfill reported flat revenues, although SaaS revenue rose by 11% to £6.1 million and now represents 84% of the total.

Adjusted Ebitda was £1 million, down from £1.7 million in the first half of the previous year and the firm made a loss of £107,000 before tax, compared to a profit of £547,000 in H1 10/11.

Despite the loss, Ffastfill says it has made "good operational progress" during the period and has signed up three significant new customers and secured another three extensions.

The vendor also moved to allay any concerns over the collapse of client MF Global, stating that "annualised revenues lost of £0.3m are expected to be replaced with new wins resulting from the breakup".

Earlier this month another small UK vendor, Patsystems, admitted it has been hit hard by the collapse of MF Global, a major customer accounting for recurring revenue of around £3 million.

Keith Todd, executive chairman, Ffastfill, says: "We continue to make good operational progress both in building out and deploying a global platform for growth. Our SaaS offering continues to gain traction globally, competing strongly and winning important new mandates in spite of the continuing structural shifts taking place in the financial services market."

Meanwhile, the UK outfit has inked a conditional asset purchase agreement for the acquisition of the trade and assets of Chicago-based technology consulting and software business, WTD Consulting, for a maximum consideration of up to £7.6 million, with £4.5 million up front.

Ffastfill says the deal boosts its market position in the exchange traded derivatives and OTC arenas as well as strengthening its US business, adding new customers and the prospect of more thanks to ongoing OTC regulatory moves.

On a pro forma basis the WTD business generated revenue of $8 million and operating profit of $1 million for the year ended 30 June 2011. Ffastfill expects the acquisition to be earnings enhancing in the first twelve months.

Says Todd: "I am excited by the announcement today of our acquisition of the business and assets of WTD: a move that will significantly enhance our US business development opportunities, take our Back Office capabilities into that market, and enhance our Back Office deployments around the world."

Shares in Ffastfill were down 0.13 pence, or 1.2%, to 10 pence in mid-morning trading.

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