GL Trade turnover up for first nine months of 2004
03 November 2004 | 519 views | 0
Source: GL Trade
GL TRADE achieved turnover of €110.2m in the first nine months of 2004, representing a 17.5% year-on-year rise unadjusted for movements in exchange rates and including the late 2003 acquisitions of MSTS and GLESIA. At constant exchange rates, the increase is 18.5%.
Turnover by geographical zone In the first nine months of 2004, turnover outside France accounted for 79% of the total, as opposed to 71% in the same period in 2003.
Turnover in the UK grew by 33% to €27.6m, and accounted for 25% of GL TRADE's total as opposed to 22% in the year earlier period. The UK business benefited in particular from the acquisition of Misys Securities Trading Systems (MSTS) in the UK in November 2003, which contributed approximately €5m to GL TRADE's nine month turnover.
France accounted for only 21% of total turnover. French turnover fell by 15% (or by €4m), due to ongoing initiatives by clients to cut costs and activity levels, due to mergers and relocations. The traditional retail data distribution business (Minitel and TV) continued to decline.
Turnover doubled to €13.7m in Italy, due to Italian product distribution being brought back inhouse at the start of the year.
Turnover in the rest of Europe remained stable at €22.5m. The contribution from Iris, which was acquired on 1st July, was not significant during the period (€0.1m). < In the USA, which accounts for 85% of turnover in the Americas zone, turnover rose by 13% in dollar terms and by 2% in euro terms. The acquisition of Davidge, announced a few days ago, has been finalised, and will take effect on 1st November. This acquisition bolsters GL TRADE's product range in the US markets, and significantly strengthens its position in the USA. Davidge is likely to generate turnover of approximately $1m in the fourth quarter. As a result of this acquisition, the USA is likely to account for 15% of GL TRADE's total turnover in the near future.
Turnover doubled in Asia to €14.1m, due to the combination of the acquisition of MSTS' activities in Japan and Hong Kong (nine month contribution of around €3m) and new contract wins. GL TRADE is now a major player in Asia. Based on these figures, we confirm our full year turnover growth target of 15-20% a15-20% at constant exchange rates.
Margin targets confirmed due to first half restructuring
The integration of the newly acquired MSTS and GLESIA dragged down EBITA in the first half, due to restructuring costs. This restructuring was mostly completed by mid-year, and all businesses should generate EBITA margin of 19-20% in the second half of the year.
Full year net profit before goodwill amortisation should come in at between 12% and 13% of turnover, as previously anticipated.