Patsystems a UK-based supplier of software for dealing on multiple derivatives exchanges, is to return surplus cash to shareholders as business picks up in the last trading quarter.
The group is reporting three new commercial successes in recent weeks -including a contract with the Pax Clearing Corporation and a relationship with the Singapore Futures Exchange - in addition to the five new clients announced during the first two quarters. Underlying trading has also improved over the previous quarter with an increase of 13% in end users, and 18% in lots traded, says the vendor.
With cash consumption on the wane and a positive trading outlook, the company has decided to return surplus cash to investors. The Board anticipates that this will be in the range of 8p to 9p per share
Kevin Ashby, patsystems recently appointed CEO says: "In the absence of any corporate transactions that we consider worth pursuing at this time, we feel it is appropriate and in the best interests of shareholders that we recommend the return of our surplus cash reserves."
Pressure is rising on firms floated at the height of the tech stock boom to return surplus cash to investors. Within the financial technology market, computer security group NCipher and back office software supplier Financial Objects are both sitting on large cash piles.