Patsystems full year profit up; bullish on prospects for 2008

Patsystems full year profit up; bullish on prospects for 2008

Shares in Patsystems gained in morning trading after the AIM-listed dealing systems vendor reported higher full year pre-tax profit and said prospects for 2008 are in line with its business plans.

Patsystems stock was up 3.88%, or one pence, to 26.75 pence in morning trading after the firm posted pre-tax profit for the full year ending 31 December 2007 of £2.19 million, compared to £1.63 million in 2006 and £0.36 million in 2005.

The vendor says its full year revenue rose 11% to £17 million, from £15.3 million in 2006.

Stewart Millman, chairman of Patsystems, says the pleasing set of results have been achieved while contending with an "unforeseen level of trauma in some sectors of the global financial markets" and adverse exchange-rate movements against sterling, the decline in the average US dollar and Yen exchange rates, which have together reduced pre-tax profit by an estimated £390,000.

Looking ahead Millman says trading from 1 January 2008 and prospects for 2008 "are in line with business plans" and "we remain comfortable with current market expectations for 2008".

Patsystems says 83% of revenue in 2007 is of "a recurrent nature" so the business has an "excellent financial foundation for 2008".

The vendor also says that Millman is retiring from the business after the forthcoming annual general meeting and will be succeeded by Richard Last.

However Patsystems declined to make any further comment on a possible bid for the company by Dublin-based rival Ion Trading.

Speculation that the privately-owned Irish vendor was gearing up to launch a takeover bid surfaced again earlier this month after Ion increased its stake in Patsystems from 26% to 27%.

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