Plus Markets narrows losses; increases turnover

Plus Markets narrows losses; increases turnover

Plus Markets, the quote-driven alternative to the London Stock Exchange's SETSmm system, is reporting a narrowing of full year losses and increased turnover for 2006 but says plans for increased spending on infrastructure will impact its profitability in the current year.

The group's loss for the year narrowed from £1.36 million in 2005 to £1.33 million in 2006, while turnover increased to £2.17 million, compared to £1.45 million in the previous year.

Plus says the rise in turnover was primarily due to the introduction of two new revenue streams - trading services, consisting of revenue fron broker dealer and market maker membership, and market data services, which is licence revenue from distributors and terminal sales to end-users.

Commenting on the results, Plus CEO Simon Brickles says: "With improving market share, a strengthened balance sheet post year end and a first rate team, we have built a sound base for increasing our stock coverage and launching a wider challenge to the traditional exchange monopoly."

In January the company raised £25 million in a share placing, which it will use to fund the extension of trading and quotation services.

Plus says it will invest in "major additional infrastructure" and these costs will precede any additional revenue and will "impact the company becoming profitable in the current year".

The company has also applied to the Financial Services Authority (FSA) for recognised investment exchange (RIE) status. Plus has previously stated that it expects to be classified as a market operator under MiFID and consequently to hold the requisite permissions to operate the full spectrum of EU regulated and exchange-regulated markets.

Plus says it now has the resources in place "to take advantage of the opportunities offered by MiFID."

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