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Interim Results

Fidessa achieves solid revenue growth

01 August 2016 07:33

Fidessa achieved solid revenue growth, with growth across all business lines and regions.

HIGHLIGHTS

- Good international spread, with 63% of total revenue accounted for outside of Europe

- International spread providing stability against uncertainty as a result of Brexit vote

- Increasing opportunity for new Fidessa services as markets enter a new phase

- Strong growth in multi-asset revenue as derivatives programme continues

- Recurring revenue representing 86% of total revenue

- Strong cash generation, with £66.9 million cash balance after dividend payments of £27 million

- Interim dividend increased by 9% to 14.3p

Chief executive Chris Aspinwall said: "During the first half of 2016, despite the challenges our customers have faced, the new phase of recovery within our end markets has continued with structural and regulatory changes starting to have an impact.

"This has resulted in new opportunities and high levels of new business activity which, when combined with the weakness of sterling, have enabled us to deliver strong growth during the first half.

"As anticipated in the 2015 preliminary results announcement, we expect to see an increased headwind in 2016 as a result of consolidations and closures within our customer base.

"However, whilst we expect there will be further consolidations and closures in 2016, on the basis of what we can currently see, we believe that this headwind will start to reduce next year.

"Moving into the second half, whilst we continue to see structural and regulatory drivers within the market, there is clearly a degree of uncertainty as a result of the Brexit vote.

"Although it is too early to say what the wider implications of Brexit will be and how this might affect customer activity, we are not currently expecting that there will be any impact on the changing regulatory environment.

"In particular, we expect that MiFID II will be introduced as planned across Europe and that, regardless of any Brexit negotiations, it will also be implemented in the UK.

"We continue to believe that we are well positioned to benefit from opportunities that will arise as a result of these changes in regulation.

"Furthermore, with over 60% of our revenue derived from outside of Europe, we remain well positioned to benefit from any weakness in sterling, providing further support for our strong cash generation and dividend policy.

"Overall, we expect that 2016 constant currency growth will be around the levels that we have seen in the first half, with the possibility of further headline gains if sterling remains at its current level."

Story provided by StockMarketWire.com

Related Company: FDSA

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