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Patsystems posts first half loss

Source: Patsystems

RESULTS FOR THE SIX MONTHS AND THE PERIOD ENDED 30 JUNE 2008

Financial Highlights

Turnover up 6% to £8.3m (H1 2007: £7.8m) with recurring revenue 96% of turnover (H1 2007: 92%)

Adjusted pre-tax profit* of £413k (H1 2007: £980k) despite sales wins slipping to the second half

Net cash inflow from operating activities for the period was £977k compared to £767k in the first half of 2007 with the cash balance at 30 June 2008 of £3.4m (£2.9m at 30 June 2007)

Improved interim dividend declared of 0.126p per share (H1 2007: 0.12p), reflecting strong cash generation and confidence from recurring revenue base

Operational Highlights

The newly formed Hong Kong Mercantile Exchange has selected Patsystems to provide trading and risk management technology

Investment in Asia has paid dividends during the period with Ascot Financial Services, Guotai Junan Futures and GK Goh all selecting the Patsystems trading system to fulfil their business growth ambitions

GH Financials Limited and Royal Bank of Canada Capital Markets Corporation have both adopted Risk Informer for risk management of their global futures trading businesses

Patsystems Pro-Mark named 'Technology Product of the year' at the Futures & Options Weekly (FOW) 2008 awards ceremony

Billable Pro-Mark trading screen user numbers have risen to 500 at the end of the period from 375 at the start of 2008

* profit before tax after adjusting for share option costs, marking to market of derivatives used to hedge cash flows and amortisation of intangibles other than internally developed software

Richard Last, Chairman, of Patsystems, commented: "Patsystems has delivered a solid first half performance considering the well documented challenges within our market place. The fundamental strength of the business has been demonstrated by both the revenue growth and the level of cash generation.

"As highlighted in our June trading update, sales wins have crystallised later in the year than we had envisaged. However, the sales success that we have achieved in the last two months, as well as the strong order pipeline, means that we remain confident of achieving current market expectations."

Read the full statement here:Download the document now 67.2 kb (PDF File)