Trading systems vendor Fidessa is forecasting a slowdown in growth for the second half of 2009 as consolidation trends hit smaller customers and buy-side firms.
In its interim management statement for the period from 1 July 2009 to date, Fidessa states that market conditions have continued to improve as stability and confidence have begun to return to the financial markets.
However, the vendor cautions: "The effects of the events of 2008 continue to be felt, particularly amongst our smaller customers and some buy-side firms where continued pressure has led to them re-evaluating their business models. In these areas of the market we are currently seeing some consolidation and we expect that this will continue."
On the upside, the larger sell-side players are benefitting from stabilised balance sheets and reduced capacity in the market.
"This is creating demand for our software and services both in existing regions and also across the emerging markets," says Fidessa. "However, as noted in the interim announcement, we do not believe that the overall rate of growth for 2009 will be as high as that seen during the first half particularly when the impact of currency movements is taken into account."
In its trading statement for the first half of the year, Fidessa reported revenue up 19% at £116 million and operating profit up 22% at £15.7 million, with both figures adjusted to discount favourable currency movements.