French trading systems vendor GL Trade is setting up a buy side business line and has sold its 34% stake in Bourse Connect to finance the venture.
GL Trade says it sold its non-strategic 34% stake in Bourse Connect earlier this month for EUR9 million and will use the receipts to finance its growth plans.
In a statement, the firm says it has completed development of its GL Stream WorkStation - which integrates the technology it has acquired over the past three years - and is migrating all existing customers onto the platform.
Once this migration is complete, the vendor will refocus its R&D efforts and set up a buy-side business line in an attempt to broaden its customer base. The firm says it will adapt its products to the needs of buy-side clients.
New of the move comes as the highly-acquisitive vendor reports a 19.5% increase in first half turnover to EUR87.1m, although this was boosted by the Ubitrade and Davidge Data Systems (DDS) businesses it bought in late 2004.
But the cost of integrating Ubitrade and DDS held back GL Trade's underlying operating profit, which rose to EUR14.8m, compared to EUR12.4m last year. As a result underlying operating margin for H1 2005 was the same as a year ago. The group's net profit rose to EUR11.6m, compared to EUR9.1m a year ago.
Looking ahead, GL Trade says the acquisition of New York-based Open Architecture Systems Integration Solutions (Oasis) will boost its back office business in the US.
The group is maintaining its full-year 2005 targets of 15% turnover growth, underlying operating margin of around 18% and net margin of around 16%, including the impact of the Bourse Connect disposal.