28 May 2017
Find out more

Fidessa rises on positive first half

04 August 2008  |  3807 views  |  0 ticker 2

London-based Fidessa has posted rising revenue and pre tax profit for the first six months of the year and says it expects the growth to continue in the second half, despite the turbulent conditions in the financial markets.

Shares in Fidessa rose over seven per cent to 950 pence after the vendor posted a glowing set of interim results, with pre-tax profit soaring 162% to £21.5 million in the six months to 30th June 2008, from £8.2 million a year earlier. Group revenue increased 40% to £85.0 million in the first half, from £60.7 million a year ago.

Fidessa says growth continued to be driven by recurring revenue, which increased to £65.5 million in H1 and represented 77% of total revenue.

The firm says it has continued to develop its buy-side business during the first half, with over 30 new customers signing to take Fidessa LatentZero products. The vendor says recent market conditions have caused the sales pipeline to slow briefly, but this picked up again as "asset managers assessed the market conditions, and looked beyond equities in search of portfolio returns".

Fidessa says the challenging marketing conditions experienced by its sell-side clients created new opportunities for the group as customers moved consolidate more trading onto the Fidessa platform in order to cut costs.

Following the positive first half, Fidessa chief executive, Chris Aspinwall, says the group's business model, which has limited dependency on trader headcount, has delivered growth despite increased M&A among sell-side clients and moves by its customers to reduced staff.

Looking ahead Aspinwall says he expects demand for services and the sales pipeline to remain strong in the second half of the year.

"We are clearly aware that many of our customers are facing challenging market conditions at the moment and we are conscious of our role in being a supportive partner to our customers during this period," he says. "However, we currently see no indication that overall demand for our services will slow down and the sales pipeline remains strong. We therefore expect that like-for-like growth for the year as a whole will be around the level we have seen in the first half."

But despite the healthy H1 results and the upbeat outlook, analysts appear to be more cautious on Fidessa's prospects. Roger Phillips, an analyst at Evolution Securities, told Reuters reporters that in the "rear view mirror" the UK software market looks good, but warns that "looking further ahead is a lot worse".

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Mitsubishi deploys Fidessa BlueBox for algo trading

Mitsubishi deploys Fidessa BlueBox for algo trading

20 February 2008  |  5548 views  |  0 comments
Fidessa to open Belfast development centre

Fidessa to open Belfast development centre

19 February 2008  |  7529 views  |  0 comments
Fidessa full year revenue and profit up; talks up outlook

Fidessa full year revenue and profit up; talks up outlook

11 February 2008  |  4110 views  |  0 comments

Related company news

 

Related company information

Fidessa group

Related blogs

Create a blog about this story (membership required)
visit dh.comvisit www.response.ncr.comVisit www.capgemini.com/worldreports

Top topics

Most viewed Most shared
BBVA launches Open API marketplaceBBVA launches Open API marketplace
13104 views comments | 50 tweets | 79 linkedin
Bank/fintech collaboration can take transaction banking to new heightsBank/fintech collaboration can take transa...
7712 views comments | 12 tweets | 24 linkedin
R3 raises $107mR3 raises $107m
6861 views comments | 16 tweets | 16 linkedin
TransferWise launches multi-currency business bank accountsTransferWise launches multi-currency busin...
6777 views comments | 12 tweets | 20 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job