Source: Capco
The Capital Markets Company N.V. ("Capco"), the leading provider of integrated consulting, business processing, data and technology services to the global financial services sector, reports strong consolidated results for its first half fiscal year 2004 ended June 30.
Certain key elements of the unaudited consolidated results, which are being delivered next week to its institutional and private investors (which include ABN Amro, Gimv, Fortis, Dexia, Hewlett Packard, KBC, and Tailwind Capital Partners (formerly Thomas Weisel Capital Partners), are summarized below:
Year on year six month net revenue (US GAAP) growth of 58% to US$ 46.9 million (compared to the first half of 2003: US$ 29.7 million). Year on year six month expenses (US GAAP) growth was held to 7%, supporting significant margin improvement compared to 2003. A full year consolidated net revenue forecast of approximately US$ 100 million. On a produced revenue basis, Capco delivered a positive EBITDA in the first six months. Processing services, data and technology products provided 9% of revenue in the first six months (2003: 2%) with professional services providing the rest. This percentage is expected to increase further over the course of the year.
The strong first half result was supported by the impact of a continuing vigorous focus on utilization and cost control which saw improvements in all the key business drivers: margins, billability and billing rates.
"The Capco Group significantly outperformed the market in the first half," said Rob Heyvaert, Chairman and CEO of Capco. "On the strength of the first half, we fully expect to continue to outperform the market for the balance of the year, and we are confident of achieving US$ 100 million in consolidated net revenues for fiscal 2004.
John Owen, the Capco Partner leading Capco Enterprise transformation offerings, added: "We are seeing strong demand from financial services companies not only for traditional consulting but for the sort of larger scale transformational projects in which we are establishing a leading reputation. That is having a big impact not only on the number and size of our projects but it is also helping us to expand our relationships with new clients in new segments such as retail and corporate banking."