GL Trade, the French financial trading software house, is reporting group turnover for the first quarter 2002 of EUR28.1 million, up 34.4% compared to the same period last year. The performance, which is in stark contrast to that of its UK quoted peers, maintains GL Trade's recent momentum.
The results continue the company's recent sparkling performance. Results for the previous financial year (2001) saw the company's turnover rise by 45.6% and operating profit by 50.4%. GL Trade's ability to maintain this performance into Q1 of 2002 will greatly interest the management of UK and US listed financial software vendors, who continue to downplay hopes of an upturn in the marketplace.
GL Trade says it has benefitted from international expansion, with 64% of the total turnover for the first quarter coming from outside of France. This compares to 54% a year ago. In Europe business was particularly strong in Belgium and Finland. New contracts were also signed in Sweden. Turnover in the United States increased by 73%, representing 13% of the total turnover.
The company also established a South African subsidiary during the first quarter. The new office will manage the group's Johannesburg Securities Exchange contract, signed in November 2001, and has already started to develop business opportunities with local members.
Sales of GL NET and middle-office products increased by 45% and 56% respectively. GL Professional Services and GL Trade's Order Management System also won new business in the first quarter. GL Trade blames the market downturn at the end of 2001 for its decrease in sales figures for minitel consulting (45%) and market data transmission (5%), respectively.
In April GL Trade consolidated its position in Japan with the acquisition of CGI ISMC Tokyo - a move which has not impacted the first quarter's figures. It is expected that turnover in Japan will reach EUR11 million in 2002, which will represent around 8% of the group's turnover.
Although GL Trade is quoted on the French Nouveau Marché, only 10% of its equity is in the hands of public shareholders. Major corporate investors include Reuters with some 34%, and Financiere Montmartre, a joint vehicle owned by the company's founders and Euronext, which holds a controlling 51% of the company.