Jack Henry and The Innovation Group lead Finextra50 lower

Jack Henry and The Innovation Group lead Finextra50 lower

The Finextra50 Financial Technology Index closed last week down 2.5% to 83.95. GlobeOp and Oberthur Technologies led the few gainers.

The Innovation Group was the index's biggest faller last week, dropping 24.39% to 15.50p. The insurance industry software and outsourcing specialist announced in an interim management statement that it expects a reduction in full-year adjusted profit of £1 million due to integration and restructuring costs from its acquisition of Nobilas. TIG acquired US claims and fleet solutions company Nobilas at the end of 2007.

The company says the profit adjustment is a result of its decision to retain staff and property to support increased anticipated demand.

Jack Henry fell 14.90% to $19.99 after Q4 net income fell 14.4% from the previous year. The company says it was hit by a one-time write off of some fixed assets, legal and accounting costs, additional personnel costs and higher user group costs. Net income was $24.9 million, down from $29.1 million a year earlier.

Total revenue increased 11% over prior fiscal year to $742.9 million and full-year net income was $104.2 million or $1.16 per share. But this was less than analysts expectations of $1.20 per share on revenues of $751.69 million.

Gresham Computing continued its recent volatility, falling last week by 12.89% to close Friday at 69.25p. The company had previously hit a 6-month high of 81.5p on the back of takeover rumours, but fell last week ahead of today's first-half earnings announcement.

For the six months to June 30, 2008, the provider of real-time financial solutions reported a pretax loss of £435,000 compared with a £1.51 million loss a year earlier, while revenue rose to £7.17 million from £6.44 million.

Other companies to see significant drops last week were



GlobeOp was the index's best performer last week, rising 16.08% to 231p. The hedge-fund outsourcing services provider reported last week that founder and marketing director Ronald Tannenbaum had bought an additional 100,000 shares in the company the previous week.

Earlier in August the company reported a 22% increase in assets under administration during the first six months of this year, from $85 billion to $104 billion. Revenues were up 21%  to USD94.5m, and adjusted operating profit was up 45%to $24.6 million.

Other companies to see gains last week include:

Index comparison

More information on the Finextra50 Financial Technology Index methodology and constituent stocks can be found here.

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