Turnover and operating profit for the year ending december 2004 are both up seven per cent year on year, at £60 million and £8.1 million respectively. Recurring revenue from annual license and service fees has grown 27% to £37m, accounting for 62% of total revenue.

Recurring revenue for enterprise and hosted Fidessa increased by 37%, now representing 55% of total revenue. Revenue from Fidessa workstation more than tripled in its first full year of operation, although still representing a small proportion of total turnover. Revenue in the UK increased by seven per cent and in Europe and Asia double-digit growth was achieved. Revenue in the US grew 11% in dollar terms, but was flat against sterling.

The vendor also posted an 11% improvement in consultancy revenue between the first and second half as market conditions started to pick up, but overall revenues from this part of the business declined 20% during the year.

Chris Aspinwall, royalblue CEO, says the improving outlook is underpinning strong revenue projections for 2005. "The general improvement in consultancy combined with the continued growth in recurring revenue should result in revenue growth more than double that achieved in 2004."

Operating costs for the year ahead are also expected to rise, however. Aspinwall says the vendor will invest an additional £2 million in operating capacity to cater for increased demand for hosted services, the provision of more market data and trading functionality at the Fidessa workstation, to explore the prospects for a move into derivatives, and in the opening of a new office in Canada.

This is likely to result in a two per cent decrease in operating margin, he says. "Despite this we still expect operating profit for 2005 to be ahead of that in 2004"

The City liked what it heard. Royalblue shares were marked up 7.6% or 34 pence on the overnight close of 446 pence to hit 480 pence in mid-afternoon trading.