London screen dealing firm Patsystems has posted a first half pre-tax profit of £408,000, compared to losses of £284,000 for the same period last year.
The AIM-listed firm says pre-tax profits rose after it signed seven new customers in the period ending 30 June 2006, including a global investment bank.
But at the same time the group's revenue declined eight per cent to £7.125m, from £7.708m a year earlier, following the loss of a key Refco contract last year.
Revenue generated by its trading systems division accounted for £6.0m of the total - an increase of 6.5% on 2005 despite the lost Refco revenue. Exchange systems revenue accounted for £0.7m. Of this £0.5m is recurring compared to the same period last year when £0.3m was recurring. The vendor's Tamesis unit, which it acquired last year, contributed revenues of £0.4m in the period.
David Webber, chief executive, Patsystems says: "The net impact of the loss of the Refco business does mean the challenge is greater then we had anticipated and the risk of further consolidation within our customer base remains a threat to the rate of growth in trading system revenues."
But Webber adds that he is "satisfied that the recurring revenue being added in this financial year will materially benefit 2007, and that ongoing growth of profitability for the business can be confidently forecast".
Patsystems shares rose 1.50% to 16.50 pence in morning trading.