Ffastfill turnover boosted by acquisition as losses widen

Ffastfill turnover boosted by acquisition as losses widen

UK derivatives software vendor Ffastfill is reporting widening operating losses for the year ending 31 March 2005, despite posting a 63% rise in turnover following from its acquisition of Financial Dynamics last year.

The firm says total operating losses for the year increased to £2.7m, compared to £2.6m a year ago. Full year turnover grew to £4.3m, up 63.2% from last year's £2.65m, but this includes £1.2m revenue from Future Dynamics.

The company's cash balance at year-end was £911k, compared to £967k last year. In addition Ffastfill says it received £1.7m in delayed payments from customers in mid April, after year end.

The vendor expects to receive £3.1m later this month in a share placing which will be used as working capital and to support sales activity in both the UK and US. The company previously raised £4m in a share placing in April 2004 to fund acquisitions and support its move to an application hosting business.

Keith Todd, executive chairman, Ffastfill, says he is confident that the company's strategy to become an application service provider is working and the firm is seeing increased market acceptance for ASP services.

Looking ahead, the company will also continue to look for "value enhancing" acquisitions that expand its asset class functionality, its ability to offer straight-through processing and it customer base.

Ffastfill shares were up 3.50% in mid-day trading to 7.25 pence.

Company directors demonstrated their faith in the business by snapping up additional shares. Following the results, executive chairman Keith Todd bought a further 700,000 shares at seven pence each, costing a total of £49,000 and taking his stake in the company to 3.42%.

Chairman James Oliff acquired 200,000 shares at the same price, while business operations director Nigel Hartnell increased his stake by 135,000 shares. Non-executive director David Alan Hurst-Brown also bought a further 150,000 shares.

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